8Prescribed rates of royalty

8 Prescribed rates of royalty

(1)  For the purpose of section 102(1) of the Act, the prescribed rate of royalty payable by a lessee in respect of a mineral specified in Schedule 1 is the rate specified in that Schedule.

(2)  For the purpose of section 102(1A) of the Act, the prescribed rate of royalty payable by a licensee in respect of a mineral specified in Schedule 1 is the rate specified in that Schedule.

(3)  For the purpose of sections 102(1) and (1A) of the Act, the prescribed rate of royalty payable by a lessee or a licensee in respect of a mineral, other than a geothermal substance, not specified in Schedule 1 is that produced by the following formula:

where –

R is the royalty;

N is the yearly net sales of the mineral for the immediately preceding year;

P is the yearly profit as calculated or determined under regulation 9 , if any, for the immediately preceding year.

(4)  For the purpose of section 102(1C) of the Act, the prescribed maximum rate of royalty payable for a mineral not specified in Schedule 1 is equivalent to 5.35% of net sales.

(5)  For the purpose of section 102(1D) of the Act, the prescribed rate of royalty payable by a licensee in respect of geothermal energy produced under the licence is 2.75% of the value of the geothermal energy produced at the well head.

(6)  Despite subregulation (3) , if the value of the net sales of a mineral not specified in Schedule 1 is less than $100 000 for a year, the prescribed rate of royalty is 1.9% of net sales.