9Calculation of yearly profit

9 Calculation of yearly profit

(1)  For the purpose of regulation 8(3) , yearly profit is the prescribed yearly profit for the lessee's, or licensee's, mining operations, from which the mineral referred to in that subregulation is obtained, adjusted –

(a) to exclude –

(i) interest; and

(ii) hedging gains and losses; and

(iii) exploration expenditure; and

(iv) financing costs; and

(v) royalty; and

(vi) pellet premium; and

(b) to include –

(i) delineation drilling costs; and

(ii) head office expenses; and

(iii) mining operations rehabilitation interest expense.

(2)  If a mineral not specified in Schedule 1 is sold at a price less than the market price, the Minister may determine the amount of yearly profit in respect of that mineral up to an amount not exceeding the amount of yearly profit that would have been likely if the mineral had been sold at the market price.

(3)  In this regulation –

delineation drilling costs means the lessee's or licensee's costs of drilling for specified resources in the lease area, or licence area, and the costs of developing access routes for such drilling;

exploration expenditure means non-capitalised expenditure incurred by the lessee, or licensee, in prospecting or searching for minerals –

(a) inside or outside the lease area or licence area; and

(b) outside an area of specified resources;

head office expenses means those costs incurred by the lessee, or licensee, in the administration and management of the mining operations referred to in from that lessee's or licensee's head office, whether located in the State, in another State or a Territory in Australia or overseas, in so far as those costs –