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Australia: Operating costs for purposes of mineral royalty liability

Australia: Operating costs, purposes of mineral royalty

The Northern Territory Supreme Court held that “three heads of expenditure” incurred in relation to mining activities were deductible for the purposes of calculating mineral royalty liability under section 10 of the Mineral Royalty Act 1982 (NT) (MRA).


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To be deductible, the expenditure was found to be an “operating cost” as defined in the law, and the court thus concluded that the three heads of expenditure incurred in relation to mining activities were deductible for the purposes of calculating mineral royalty liability.

The case is: Groote Eylandt Mining Company Pty Ltd. V. Secretary for Mineral Royalties (NT) [2019] NTSC 58

Read a July 2019 report prepared by the KPMG member firm in Australia

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