Minerals and mining operations Tax (Mineral Royalty) is imposed on income of a person engaged in mineral operations. Subject to any fiscal stability agreement, the mineral royalty rate is 5% of the total revenue earned from mining operations and is calculated for each year of assessment. A person’s income from separate mineral operations are taxed separately.
Where two or more persons, apart from a partnership hold a mineral right, each person is taxed separately. Mineral operations relating to a mine and shared processing facility are regarded as a separate operation.
An unrelieved loss shall be deducted by the person in the order in which the loss is incurred. It may be deducted from only future income from that separate mineral operation.
A person who holds interest in an entity that holds a mineral right is treated as holding interest as a capital asset employed.
An entity is considered to have disposed of and re-acquired its interest by incurring an expenditure equal to the amount received where the underlying ownership changes by five percent (5%) or more.
The consideration for the disposal is equal to the amount received, amount receivable or the market value, whichever is higher.