Dáil Éireann Debate, Tuesday - 17 December 2013
360. Deputy Richard Boyd Barrett asked the Minister for Communications, Energy and Natural Resources the tax and royalty regime in place for stone quarrying and mining here; and if he will make a statement on the matter. [54240/13]
View answerThe information set out below relates only to minerals within the meaning of the Minerals Development Acts 1940 to 1999, for which I have statutory responsibility. The definition of minerals in those Acts specifically excludes stone, sand, gravel and clay, so I have no remit in relation to stone quarrying. Financial terms for State Mining Facilities are set in accordance with Section 26 of the 1940 Act, which affords discretion as to the form of royalty or other payment that may be agreed for each facility, subject to the concurrence of the Minister for Public Expenditure and Reform. In proposing rates, attention is paid to: the economics of the deposit being leased, assessed by projected return on investment, having regard to mineral grades and accessibility; royalty rates internationally; the need to continue to attract international exploration funding; and the expectations of the State as mineral owners and the developer achieving a fair return depending on economic circumstances and recognising the need to allow for the many exploration failures. Actual rates are then settled by negotiation on a case-by-case basis. There is typically an annual minimum payment ("Dead Rent") which merges into the royalty.
Royalties for metalliferous mines are usually set on the basis of a percentage of net smelter return. For industrial minerals, the most common system is a royalty based on the tonnage extracted. Details of all State mining leases/ licences are published in the six-monthly report, which is laid before the Oireachtas as required under the Acts. The most recent such report relates to the six months ended 30 June 2013.
While taxation is primarily a matter for my colleague the Minister for Finance, I would point out to the Deputy that the Corporation tax rate applicable to mining is 25%, twice the rate applicable to business generally.
