Download DEPARTMENT OF MINERAL RESOURCES 1. Mining Incentives 1

DEPARTMENT OF MINERAL RESOURCES
1.
Mining Incentives
1- Under section 16 of the Income Tax Act the minister can grant a tax holiday to a
mining company for a number of years depending on the submission and their
application for a tax holiday.
2- Duty free import of all specialized equipment except hand tools of a kind of
general purpose items for two years from the date of approval
3- Loss carry forward of 8 years (previously was for 6 years loss to be carried
forward but now is 8 years loss to be carried forward)
4- 20% accelerated depreciation allowance (applies for buildings, company can
apply for 5 year and have to provide engineers certificate and submit application)
Industry
Mining Industry
(New)
2.
Item
Capital, plant and
equipment except
hand tools of a
kind of generalpurpose item
2. Motors Vehicles
and specialized
mining mobile
equipment (except
parts &
accessories)
Fiscal Duty
Free
VAT
12.5
Free
12.5
Royalty Payments
Mining Act Cap 146, Section 54 - (1) states: "All minerals obtained in the course of
prospecting or mining operations shall be liable to the prescribed royalties and no
mineral shall be exported unless such royalties are paid or secured in accordance with
the prescribed conditions.
Provided that the Director may by permit in writing exempt from royalties small
quantities of such minerals exported as commercial samples or scientific specimens or
for the purpose of analysis or experiment as he thinks fit"
Further, Section 54 - (3) also states:- "The Minister may by notice in the Gazette, remit
the whole or any part of any royalties payable by any person in respect of any mineral or
minerals for such period as may be specified in such notice"
The above then has to be read in conjunction with Mining Regulation 6 - (1) which also
states" All royalties payable under the provisions of Section 54 of the Act shall be paid to
the Director, and, subject to the provisions of Regulation 7, shall unless otherwise
determined by the Director with the approval of the Minister, be calculated at the
following rates:-
a) In the case of bauxite or iron ore, at the rate of 3 per cent of their value and
b) In the case of any other minerals, at the rate of 5 per cent of their value"
Also Regulation 6 - (2) further states:- " In the case of minerals intended for export, all
royalties payable thereon under the provisions of this regulation shall be paid by the
person exporting such minerals and shall become payable at the time of delivery of
such minerals on board a ship or aircraft for export, and for the purpose of calculating
the amount of royalty payable thereon, the value of such minerals shall be the price
which, in the opinion of the Director having regard to prevailing world market prices, a
purchaser would pay for them at the time of their delivery on board a ship or aircraft for
export”
3.
Wages Council wage rate for mine workers
Minimum Remuneration
Class of Workers
Clerk
Machinist
Miner
Assistant Miner/Scraper
Operators
Skilled worker
Technical Services
Tradesman
Tradesman Trainee
Unskilled Worker
Underground
rates
$2.54
$2.75
$3.66
$2.75
$2.82
$2.75
$2.75
$3.09
$2.68
$2.39
Contact Information:
The Director
Department of Mineral Resources
241 Mead Road
Private Mail Bag
Suva
Ph: (679) 3381611
Fax: (679) 3370039
Website: www.mrd.gov.fj
Surface rates
$2.54
$2.75
$3.52
$2.61
$2.68
$2.61
$2.61
$2.95
$2.54
$2.25