30June 2004 – reduce the royalty payable by more than 30%

30 June 2004 – reduce the royalty payable by more than 30% of the amount of royalty that would be payable had eligible exploration expenditure not been taken into account, whichever is the lesser; or

Part I Preliminary Mineral Royalty Act 1982 6 (d) if the royalty is payable in respect of a royalty year commencing on or after 1 July 2004 – reduce the royalty payable by more than 25% of the amount of royalty that would be payable on the basis of net value had eligible exploration expenditure not been taken into account, whichever is the lesser. eligible research and development expenditure, in relation to a production unit in respect of a royalty year, means an amount which was reasonably expended by a royalty payer for research into methods designed to reduce the eligible capital assets expenditure and the operating costs of, or to improve the rate and amount of recovery of a saleable mineral commodity from the production unit. eligible social infrastructure expenditure, see section 4AB. expended means: (a) where the specified accounting basis of a production unit is a cash basis – amounts paid; and (b) where the specified accounting basis of a production unit is an incurred basis – amounts incurred, being amounts paid and pecuniary liabilities that have become due the amounts of which are known or can be estimated with certainty; and (c) where the specified accounting basis of a production unit is an accrual basis (other than an incurred basis) – charges brought to account. extractive mineral exploration licence, see section 46(1) of the Mineral Titles Act. extractive mineral lease, see section 54(1) of the Mineral Titles Act 2010. extractive mineral permit, see section 50(1) of the Mineral Titles Act 2010. grade, in relation to a mineral commodity, means: (a) the percentage contents of each element in the mineral commodity; and (b) any other characteristic of the mineral commodity, that adds to or detracts from its value, and shall be taken to be that agreed between a royalty payer and the Secretary or, failing agreement within a reasonable time, as determined by the Minister.

Part I Preliminary Mineral Royalty Act 1982 7 gross production revenue, see section 4A(1). gross realisation, see section 4A(1A). mineral means: (a) a naturally occurring: (i) inorganic element or compound, including an inorganic carbonate compound; or (ii) organic carbonate compound; obtained or obtainable from land by mining, whether carried out under or on the surface of the land; or (b) coal and lignite; or (c) a prescribed mineral; but does not include an extractive mineral, being: (d) soil; or (e) sand, gravel, clay or stone that is suitable for use in construction or building works; in relation to which one of the following relates: (f) an extractive mineral permit; (g) an extractive mineral lease; (h) a mineral authority that corresponds to a permit or lease mentioned in paragraph (f) or (g). mineral authority, see section 118(2) of the Mineral Titles Act 2010. mineral commodity means a mineral or substance derived from a mineral at any stage of treatment of that mineral. mineral exploration licence, see section 26(1) of the Mineral Titles Act 2010. mineral exploration licence in retention, see section 34(3) of the Mineral Titles Act 2010. mining tenement means a right, by whatever name known, to obtain minerals from land (including Special Mineral Lease 11 held by Gove Aluminium Limited and Swiss Aluminium Australia Limited