Mining and Petroleum Royalties

Mining and petroleum royalties represent a payment to the owners of a resource for the right to extract it. As the state owns all petroleum, gold and most minerals, royalties on these commodities are normally paid to the state government through the Department of Employment, Economic Development and Innovation (Queensland Mines and Energy).

Royalties on petroleum, coal and most minerals are payable on an ad valorem (value) basis. These are essentially calculated as a percentage of the value of the mineral or petroleum as determined by the Minister.

The Petroleum and Gas (Production and Safety) Act 2004 requires that petroleum producers lodge royalty returns and pay royalty on a quarterly and annual basis.

The Mineral Resources Act 1989 requires that the holder of a mining lease or mining claim lodge a royalty return and any royalty payable at least annually for all leases and claims held, even if no production took place. Larger producers are required to pay royalty on a quarterly basis, while smaller producers generally pay royalty on an annual basis.

Royalty returns

Generally royalty is payable when a mineral or petroleum is sold, disposed of or used.

All royalty contributors may be subject to a royalty audit.

The rates of royalty payable are determined in accordance with the Mineral Resources Regulation 2003 and the Petroleum and Gas (Production and Safety) Regulation 2004.

You can download copies of the Acts and regulations from the Office of the Queensland Parliamentary Counsel website.

Revenue statistics

Key dates

A number of key dates relate to royalty and tenure rental, in accordance with the provisions of the Mineral Resources Act 1989, the Mineral Resources Regulation 2003 and the Petroleum and Gas (Production and Safety) Act 2004. It is important that the key dates be observed to avoid the possibility of interest, additional rental, penalties or the cancellation of tenures.

Payments

Royalty and tenure rental payments may be made by cheque, credit card (Master Card and Visa only), money order or electronic funds transfer. Please note that payments relating to exploration permit applications and renewals may only be made by cheque, which must accompany the application or renewal form.

Contacts

Email: DMERoyaltyEnquiries@dme.qld.gov.au

For further information on mining and petroleum royalty contact:

Policy Officer:
Phone: +61 7 3237 1426

Senior Revenue Officer:
Phone: +61 7 3237 1403
Fax: +61 7 3237 1441

If you experience difficulty downloading any of these documents, or would like a copy sent via mail, please contact:

Royalty and Rent
Queensland Mines and Energy
Department of Employment, Economic Development and Innovation
Level 4, 61 Mary St
Brisbane Q 4001

PO Box 15216
City East Q 4002

Phone: +61 7 3237 1403
Email: DMERoyaltyEnquiries@dme.qld.gov.au