Feedback sought for royalty related changes to Mining Regulations 1981

The department is making some wording changes to Regulation 86 of the Mining Regulations 1981 and is looking for industry feedback.
Date: Tuesday, 19 June 2018

The Department of Mines, Industry Regulation and Safety (DMIRS) is seeking stakeholder feedback on its proposed changes to the wording of Regulation 86 in the Mining Regulations 1981.

DMIRS’ General Manager of Financial Compliance, David Norris said the department is not changing royalty rates and is proposing some changes to the wording of the regulation to remove ambiguity in applying the appropriate royalty rate when minerals are sold in different forms.

“The regulation currently outlines which royalty rate applies to which mineral for calculating royalties however it doesn’t always specify the processed form to which the royalty rate applies,” Mr Norris said.

“This can lead to confusion when you apply the appropriate rate for a mineral sold in a different form.

“The suggested changes should ensure royalty rates are applied in a manner that is consistent with Western Australia’s royalty principles. All feedback is valuable and we are encouraging stakeholders to submit their comments.”

Royalty rates are applied as follows:

  • 7.5 per cent  - bulk material (subject to crushing or screening);
  • 5 per cent -  mineral concentrates  (subject to upgrading);
  • 2.5 per cent - minerals in metallic form or a form of equivalent level of processing;
  • $0.73 cents  - low value construction material (rate per tonne); and
  • $1.17 cents - metallurgical material (rate per tonne).

The minerals listed below are to be amended under Regulation 86, which will indicate the individual level of processing, appropriate for each royalty rate.

Mineral Regulation 86 - Processed Form
Bauxite 7.5 per cent - Crushed or Screened
Chromite 5 per cent - Concentrate
Coal – exported 7.5 per cent - Crushed or Screened
Ilmenite 5 per cent - Concentrate
Iron ore other than beneficiated ore 7.5 per cent - Crushed or Screened
Leucoxene 5 per cent - Concentrate
Lithium Minerals 5 per cent - Concentrate
Manganese 7.5 per cent - Crushed or Screened
Nickel 2.5 per cent - Metallic form
Platinoids 2.5 per cent - Metallic form
Rutile 5 per cent - Concentrate
Silver 2.5 per cent - Metallic form
Zircon 5 per cent - Concentrate
Sand $0.73 - Used for construction purposes
Silica $1.17 - Used for metallurgical purposes

Please visit the department’s Consultation page to review the proposed changes to Regulation 86 and comments should be emailed to by Friday 20 July 2018.