Preceding Royalty requirement
Under the MRA, royalties are calculated on the net value derived from the production
of a saleable mineral commodity within the boundaries of a production unit, subject to
a minimum royalty (as calculated in paragraph 4(b)) that applies for royalty years
commencing on or after 1 July 2019.
4. The royalty payable under section 9 of the MRA is the greater of:
(1) 20 per cent of the net value, less $10 000
(2) or the percentage of the gross production revenue applying to the royalty year as follows:
(i) 1 per cent for the royalty payer’s first royalty year that begins on or after 1 July 2019
(ii) 2 per cent for the royalty year that follows the royalty year mentioned in subparagraph (i)
(iii) 2.5 per cent for each royalty year that follows the royalty year mentioned in subparagraph (ii).
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