(1) If the Minister, on application by the holder of a mining lease, is
satisfied that the value of publicly owned minerals recovered as a result of
mining operations carried on during a royalty period was less than the
appropriate amount, no royalty is payable to the Crown under this Act in
respect of those minerals.
(1A) The Chief Commissioner is to remit the
interest or penalty tax on any royalty that ceases to be payable because of a
decision of the Minister under this section.
(2) In this section--
"appropriate amount" , in relation to a royalty period, means--
(b) if the royalty period is less
than 12 months--such amount as bears to $2,000 the same proportion as the
number of days in the royalty period bears to 365.
(a) on a parcel of
land subject to a mining lease held by a person who is not the holder of any
other mining lease, or
(b) on 2 or more parcels of land subject to 2 or more
mining leases, if the holder of each parcel is the same person and if each
parcel adjoins the other or another of those parcels.
"royalty period" , in relation to a mineral recovered by a person under a
mining lease, means--
(a) the period commencing on the day on which the person
first became entitled, under the mining lease, to mine the mineral, and ending
on the last day of the first period in respect of which the person is required
by this Act to pay royalty in respect of the mineral, or
(b) the period
commencing on the day after the last day of any period in respect of which the
person is required by this Act to pay royalty in respect of the mineral and
ending on the last day of the next such period, or
(c) if, during a period
referred to in paragraph (b), the person ceases to be entitled to mine the
mineral on the land the subject of the mining lease--the period commencing on
the day after the last day of the previous royalty period and ending on the
day on which the person ceases to be so entitled.
