Ongoing obligations.
WHAT TYPICALLY APPLIES
Annual title fees Royalties on minerals extracted Corporate tax Employer obligations Environmental compliance costs Community development commitments
WHAT ROYALTIES ARE
Payments to the state based on the mineral extracted.
WHAT TO ESTABLISH
The rate for your mineral, and the basis of calculation.
WHY THE BASIS MATTERS
Whether it is on volume, weight or value changes the amount substantially.
WHAT TO RECORD
Production, accurately and continuously.
WHY
Royalty is assessed on it, and inability to demonstrate production is a problem.
WHAT REPORTING TYPICALLY REQUIRES
Production returns Employment and local content information Environmental monitoring Financial information
WHAT TO CALENDAR
Every reporting deadline and payment.
WHAT INSPECTIONS EXAMINE
Title validity and conditions Safety arrangements and records Environmental compliance Production records Employment of qualified personnel
WHAT COMMONLY PRODUCES FINDINGS
Operating outside the title area Unqualified personnel in required roles Safety failings Environmental damage Production records absent
WHY OPERATING OUTSIDE THE AREA MATTERS
It is extraction without title, which is a serious offence.
WHAT TO ESTABLISH
Clear demarcation of the title boundary on the ground.
WHY ON THE GROUND
Coordinates on paper do not stop machines.
WHAT TO KEEP
Title, receipts, returns, inspection reports and correspondence.
WHAT TO VERIFY
Current requirements, which change.
