It is not uncommon for producers to sell coal to one another for the purpose of blending or fulfilling a particular contract. For example, Producer A sells coal to an unrelated entity, Producer B, at the port; and Producer B exports the coal to its customer overseas. In such a case, subject to any contractual term to the contrary, the amount for which Producer B ultimately sells the coal is not relevant for working out the value of the coal sold by Producer A (i.e. Producer A’s sale price for royalty purposes is not adjusted to reflect any gain or loss made by Producer B in relation to the on-sale of the coal).
from the royalty act
clearly set up or work with another company to sell the coal to a nsw based company at 150 a tonnne
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