Gross value of minerals
Where royalty is calculated as a percentage of a mineral's value, you first need to work out the gross value of the mineral.
The gross value of a mineral will generally be the amount for which it is sold.
The gross value must:
- reflect any gains or losses due to a change in exchange rates between the time the mineral was sold and when any payment for the sale is received
- include any amount recovered from the purchaser in relation to the mineral royalty payable for the sale
- include the value of any mineral where no monetary consideration was received for its sale, disposal or use (e.g. when a barter transaction occurred, or when processing costs were paid in whole or in part by transfer of title to mineral).
In certain circumstances (especially where mineral is sold to a related party, or is disposed of or used), the gross value will be the amount we determine through a gross value royalty decision. In these circumstances you must apply for a gross value royalty decision to work out the royalty payable.
If you need a gross value royalty decision, contact the Office of State Revenue on 1300 300 734.
- Read the public ruling on the determination of coal royalty (MRA001).
- Read the public ruling on the determination of royalty for prescribed and specified minerals (MRA002).
- Read the public ruling on the determination of royalty for certain minerals (MRA003).
- See the royalty rulings for liabilities arising before 1 October 2020.