Northern Territory Consolidated Acts Northern Territory Consolidated ActsIn this Act, unless the contrary intention appears:
"accounting basis", in relation to the accounts of a production unit for the purposes of this Act, means prepared under an historical cost assumption on either:
(a) a cash basis, where only amounts actually paid and received are brought to account; or
(b) an accrual basis, being accounts kept in accordance with generally accepted accounting principles on any approved basis (except a cash basis), including an incurred basis where amounts actually paid and received, together with pecuniary liabilities that have become due and revenues earned the amounts of which in either case are known or can be estimated with certainty, are brought to account,
and "specified accounting basis" means either a cash basis or an accrual basis, as elected by a royalty payer under section 11.
"active operation", in relation to a production unit or proposed production unit, means either:
(a) the date on which a contract was first entered into in respect of the provision of an item referred to in the definition of eligible capital assets expenditure ; or
(b) the date on which an amount was first expended in respect of such an item,
whichever is earlier.
"approved" means approved by the Secretary either specifically or by the promulgation of guidelines under section 4E.
"authorized person" means a person appointed under section 13 to be an authorized person.
capital recognition deduction has the meaning given in section 4C.
"eligible capital assets expenditure", in relation to a production unit, means an amount expended which was essential to the setting up and operation of the production unit, in respect of:
(a) feasibility studies; and
(b) studies and investigations required by or under a law in force in the Territory to be carried out; and
(c) site clearing and overburden removal activities up to the date of the commencement of the active operation of the production unit; and
(d) mine design and shaft sinking and tunnelling; and
(e) design, acquisition, installation and construction of:
(i) mining plant; and
(ii) treatment plant necessary for the production of a saleable mineral commodity; and
(iii) storage facilities; and
(iv) structures; and
(v) electricity generation and reticulation; and
(vi) water storage and reticulation; and
(vii) communication facilities; and
(viii) transport facilities; and
(ix) town and accommodation facilities; and
(x) other facilities essential to the operation of the production unit; and
(f) amounts expended after 1 July 1982 in acquiring by transfer any tenement comprising part of the production unit, to the extent that:
(i) the amounts expended are verifiable by the transferor as being required by or under a law in force in the Territory and were represented by exploration expenditure certificates; and
(ii) have not been claimed in determining the net value upon which royalty is payable in respect of the production of another production unit,
but, notwithstanding that the amounts may have been expended and recorded in the books of account of the production unit as a capital item, does not include amounts expended in respect of negotiations with landowners before the operation of the production unit for the sustained production of a commercial quantity of a mineral commodity, unless the amounts were required to be expended on such negotiations in accordance with a law in force in the Territory.
"eligible exploration expenditure" means:
(a) until 1 July 2010, in respect of work carried out in the Territory:
(i) if a production unit was, at the commencement of this Act, exempted under section 3(2) from the operation of this Act – an amount expended by the royalty payer or any other person after the date on which this Act first applied to or in relation to that production unit and before 1 July 2003; or
(ii) in the case of any other production unit – an amount expended by the royalty payer or any other person after the commencement of this Act and before 1 July 2003;
in relation to the exploration for, or the determining of the existence, location, extent or quality of, a mineral occurrence in the Territory and in respect of which amount the Secretary has issued an exploration expenditure certificate under section 7 or, if the Secretary is considering an application for an exploration expenditure certificate, until the application is refused; and
(b) in respect of work carried out outside the Territory or work carried out in the Territory for which a royalty payer expended an amount on or after 1 July 2003:
(i) if a production unit was, at the commencement of this Act, exempted under section 3(2) from the operation of this Act – an amount expended by the royalty payer after the date on which this Act first applied to or in relation to that production unit; or
(ii) in the case of any other production unit – an amount expended by the royalty payer after the commencement of this Act;,
in relation to a mineral occurrence on a mining tenement which forms part of the production unit, which amount was, in the opinion of the Secretary, reasonably expended by the royalty payer after the date referred to in subparagraph (i) or (ii) directly in respect of the exploration for, or the determining of the existence, location, extent or quality of, a mineral occurrence on the land comprised in the mining tenement or the mineral exploration licence in retention, or mineral authority that corresponds to that licence, from which it was derived,
or so much of those amounts the inclusion of which, in calculating the royalty payable in respect of a royalty year, does not:
(c) if the royalty is payable in respect of a royalty year commencing on or after 1 July 2003 and on or before 30 June 2004 – reduce the royalty payable by more than 30% of the amount of royalty that would be payable had eligible exploration expenditure not been taken into account, whichever is the lesser; or
(d) if the royalty is payable in respect of a royalty year commencing on or after 1 July 2004 – reduce the royalty payable by more than 25% of the amount of royalty that would be payable had eligible exploration expenditure not been taken into account, whichever is the lesser.
eligible research and development expenditure , in relation to a production unit in respect of a royalty year, means an amount which was reasonably expended by a royalty payer for research into methods designed to reduce the eligible capital assets expenditure and the operating costs of, or to improve the rate and amount of recovery of a saleable mineral commodity from the production unit.
"expended" means:
(a) where the specified accounting basis of a production unit is a cash basis – amounts paid; and
(b) where the specified accounting basis of a production unit is an incurred basis – amounts incurred, being amounts paid and pecuniary liabilities that have become due the amounts of which are known or can be estimated with certainty; and
(c) where the specified accounting basis of a production unit is an accrual basis (other than an incurred basis) – charges brought to account.
extractive mineral exploration licence , see section 46(1) of the Mineral Titles Act .
"extractive mineral lease", see section 54(1) of the Mineral Titles Act .
"extractive mineral permit", see section 50(1) of the Mineral Titles Act .
"grade", in relation to a mineral commodity, means:
(a) the percentage contents of each element in the mineral commodity; and
(b) any other characteristic of the mineral commodity,
that adds to or detracts from its value, and shall be taken to be that agreed between a royalty payer and the Secretary or, failing agreement within a reasonable time, as determined by the Minister.
gross realization has the meaning given in section 4A.
"mineral" means:
(a) a naturally occurring:
(i) inorganic element or compound, including an inorganic carbonate compound; or
(ii) organic carbonate compound;
obtained or obtainable from land by mining, whether carried out under or on the surface of the land; or
(b) coal and lignite; or
(c) a prescribed mineral;
but does not include an extractive mineral, being:
(d) soil; or
(e) sand, gravel, clay or stone that is suitable for use in construction or building works;
in relation to which one of the following relates:
(f) an extractive mineral permit;
(g) an extractive mineral lease;
(h) a mineral authority that corresponds to a permit or lease mentioned in paragraph (f) or (g).
"mineral authority", see section 118(2) of the Mineral Titles Act .
"mineral commodity" means a mineral or substance derived from a mineral at any stage of treatment of that mineral.
"mineral exploration licence", see section 26(1) of the Mineral Titles Act .
mineral exploration licence in retention , see section 34(3) of the Mineral Titles Act .
"mining tenement" means a right, by whatever name known, to obtain minerals from land (including Special Mineral Lease 11 held by Gove Aluminium Limited and Swiss Aluminium Australia Limited and dated 30 May 1969), granted or continued in force by or under a law in force in the Territory, whether granted before or after the commencement of this Act, and includes the land to which the right relates, but does not include any of the following:
(a) a mineral exploration licence;
(b) a mineral exploration licence in retention;
(c) an extractive mineral exploration licence;
(d) a mineral authority that corresponds to a licence mentioned in paragraphs (a) to (c);
(e) a non-compliant existing interest, as defined in section 204(1) of the Mineral Titles Act , the sole purpose of which is to authorise an activity that may be conducted under a licence mentioned in paragraphs (a) to (c).
net value has the meaning given in section 10.
operating costs has the meaning given in section 4B.
"person" includes a corporation, company, syndicate, trust, firm, partnership, co-owners, joint-venture or part, and its, or if the context so requires their, heirs, executors, administrators, successors, assigns or other legal representative.
"production unit" means:
(a) a mining tenement; or
(b) where 2 or more mining tenements are being operated as part of an integrated operation, those mining tenements,
together with such facilities, if any, within the Territory and whether adjacent to the mining tenement or tenements or not as are essential for the production of a saleable mineral commodity from a mineral obtained from the mining tenement or tenements.
"responsible person" means the person appointed or deemed to be appointed by the tenement holders of a production unit or proposed production unit under section 10A.
"royalty" means the royalty in respect of minerals imposed under section 9 and includes interest on royalty under section 42 and penal royalty under section 42A.
"royalty payer", in relation to a production unit, means the holder of a mining tenement that forms part of the production unit and includes the responsible person appointed in respect of that production unit.
"royalty year", in relation to a production unit, means the fiscal period, not exceeding 12 months, for which the accounts of a royalty payer have been, or are, ordinarily made up by the royalty payer, or such other fiscal period that may be approved for the purposes of this Act, in either case being a fiscal period commencing on or after the date on which this Act first applied to or in relation to the production unit.
"saleable mineral commodity", in relation to a production unit, means a mineral commodity, other than a mineral commodity treated or processed to a stage declared by the Minister, by notice in writing to the royalty payer, as the stage at or beyond which it ceases to be a saleable mineral commodity for the purposes of this Act.
"Secretary" means the person holding or occupying the office of Secretary mentioned in section 49AA(1).