Vol. 400 No. 9
50 Mr. J. Higgins asked the Minister for Energy whether he has reconsidered the method of deciding the royalty payments on mineral extraction; and his views on whether there are grounds for setting a formula for mining lease terms in advance that would include concessions on marginal finds.
It is the Government's policy to settle mining lease royalty terms having regard to the nature, characteristic and projected economic outturn of each particular deposit. At present the financial terms of a lease are determined following delineation of the deposit, evaluation of the reserves, ore grades and other characteristics specific to the deposit. A detailed assessment of the likely profitability of a mining operation based on the deposit is also carried out. No change is envisaged in this policy which is designed to ensure equity between the State and the developer.Under the Minerals Acts I have extensive discretionary powers in the settlement of lease terms and I can assure the Deputy that terms would not be set which would jeopardise the viability of any proposed development.
