Mineral Resources Development (Brown Coal Royalties) Bill
Circulation Print
EXPLANATORY MEMORANDUM
551382
BILL LA CIRCULATION 6/10/2005
General
The Bill amends the Mineral Resources Development Act 1990 (the Act) to make provision for royalties for lignite (otherwise known as brown coal).
Clause Notes
Clause 1sets out the main purpose of the Bill which is to specify a new rate for royalties for lignite taken by any holder of a mining licence.
Clause 2provides that the Bill will come into operation on 1 January 2006.
Clause 3amends section 12(1) of the Act, which establishes the general arrangements for the payment of royalties under the Act, to make the requirements under section 12 subject to the requirements of new section 12A introduced by clause 4 of this Bill.
Clause 4inserts a new section 12A into the Act. New section 12A establishes specific arrangements that will apply for the payment of royalties for lignite under the Act. Sub-sections (1) and (2) establish that the holder of a mining licence that mines lignite must pay royalties for that lignite in accordance with the prescribed rate. The new arrangements apply despite anything to the contrary that may be specified in a licence or regulations made under the Act.
Sub-section (3) defines the prescribed rate as either the base amount per gigajoule unit of lignite produced or, if a different rate is prescribed in the regulations, that rate. This will enable future variations to the prescribed rate to be undertaken through the regulation-making process.
Sub-section (4) provides for the payment of royalties in respect of mining tailings for lignite. This sub-section ensures that current requirements under section 12(2) of the Act will apply to lignite.
Sub-section (5) outlines certain definitions for the purposes of this section. The most important of these definitions is the definition of "base amount" which is set at $00588 for the period from 1 January—30 June 2006 and will be adjusted on an annual financial year basis in line with the Consumer Price Index. Definitions of "consumer price index number" and "gigajoule unit of lignite" are also included.
Clause 5substitutes section 26(2)(i) of the Act with a new provision to prevent the Minister from setting a licence condition that relates to the payment of royalties in respect of lignite.
Clause 6inserts new section 132 into the Act. This transitional section states that the amendments made by this Bill will not apply to the rate at which royalties are paid for any lignite produced before 1January 2006 (the commencement date for this Bill). Thissection ensures that there can be no retrospective application of the rate to lignite produced before 1 January 2006 for which payment falls due following the commencement of the Bill.
1