Mineral Resources Development (Brown Coal
Royalties) Act 2005
Act No. 89/2005
TABLE OF PROVISIONS
Section
1.
2.
3.
4.
5.
6.
Purpose
Commencement
Royalties
New section 12A inserted
12A. Royalties for lignite
Grant of licence
New section 132 inserted
132.
Transitional provision—2005 amendments
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ENDNOTES
Page
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2
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i
Victoria
No. 89 of 2005
Mineral Resources Development
(Brown Coal Royalties) Act 2005†
[Assented to 29 November 2005]
The Parliament of Victoria enacts as follows:
1. Purpose
The purpose of this Act is to amend the Mineral
Resources Development Act 1990 to make
provision with respect to royalties for lignite
(otherwise known as brown coal).
2. Commencement
This Act comes into operation on 1 January 2006.
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Mineral Resources Development (Brown Coal Royalties) Act
2005
s. 3
Act No. 89/2005
3. Royalties
See:
Act No.
92/1990.
Reprint No. 5
as at
23 August
2001 and
amending
Act Nos
71/2001,
82/2001,
40/2002,
50/2002,
56/2003,
64/2004,
69/2004,
108/2004 and
18/2005.
LawToday:
www.dms.
dpc.vic.
gov.au
In section 12(1) of the Mineral Resources
Development Act 1990, for "The holder"
substitute "Subject to section 12A, the holder".
4. New section 12A inserted
After section 12 of the Mineral Resources
Development Act 1990 insert—
'12A. Royalties for lignite
(1) This section applies to the holder of a mining
licence if the holder mines lignite in
accordance with the licence and has effect
despite anything to the contrary specified in
the licence or the regulations (other than
regulations made for the purposes of subsection (2)).
(2) The holder of the mining licence must pay
royalties for the lignite in accordance with
the prescribed rate.
(3) For the purposes of sub-section (2), the
"prescribed rate" is—
(a) the base amount per gigajoule unit of
lignite produced; or
(b) if a different rate is prescribed in the
regulations, that rate.
(4) Without limiting sub-section (2), the holder
of a mining licence must, unless the Minister
decides otherwise, pay royalties in respect of
the disposal under section 14(2)(b) of
tailings resulting from work under a licence
over Crown land in accordance with the rate
or method of assessment and at the times
prescribed.
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Mineral Resources Development (Brown Coal Royalties) Act
2005
Act No. 89/2005
(5) In this section—
"base amount" means—
(a) for the financial year ending on
30 June 2006, $0.0588; and
(b) for each subsequent financial year,
the amount determined in
accordance with the following
formula—
A
$0 ⋅ 0588 ×  
B
where—
A is the consumer price index
number for the quarter
ending on 30 June
immediately preceding the
financial year for which the
determined amount is being
calculated;
B is the consumer price index
number for the financial year
ending on 30 June 2005;
"consumer price index number" means the
all groups consumer price index
number for Melbourne published by the
Commonwealth Statistician in respect
of the relevant period;
"gigajoule unit of lignite" means a quantity
of lignite which, when mined, has a net
wet specific energy content of
1 gigajoule.'.
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s. 4
Mineral Resources Development (Brown Coal Royalties) Act
2005
s. 5
Act No. 89/2005
5. Grant of licence
For section 26(2)(i) of the Mineral Resources
Development Act 1990 substitute—
"(i) payment of royalties, other than royalties in
respect of lignite;".
6. New section 132 inserted
After section 131 of the Mineral Resources
Development Act 1990 insert—
"132. Transitional provision—2005
amendments
The amendments made to this Act by the
Mineral Resources Development (Brown
Coal Royalties) Act 2005 do not affect the
rate at which royalties are payable in respect
of any lignite produced before the
commencement of that Act.".
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Mineral Resources Development (Brown Coal Royalties) Act
2005
Act No. 89/2005
ENDNOTES
†
Minister's second reading speech—
Legislative Assembly: 5 October 2005
Legislative Council: 25 October 2005
The long title for the Bill for this Act was "to amend the Mineral
Resources Development Act 1990 to make provision with respect to
royalties for lignite and for other purposes."
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Endnotes