Section 77
Royalty
—
(1)
Subject to subsections (5) and (8), the holder of a mineral tenement shall pay to the Government royalty on any mineral—
(a)
won and sold or intended for sale; or
(b)
won and utilized, or to be utilized, for any commercial or industrial purpose.
(2)
Subject to Clause (3B) of Article 110 and to Clause (4) of
Article 112C of the Federal Constitution and subsections (3) and (4), the Majlis Mesyuarat Kerajaan Negeri may prescribe the rate of royalty to be paid on any mineral.
(3)
The amount of royalty for any mineral may be prescribed as—
(a)
a percentage of the market value of the mineral won;
or
(b)
an amount payable on the basis of any specified volume or weight of the mineral won.
(4)
The rate of royalty applicable to the lessee or holder of a proprietary mining licence shall be fixed for the first ten years of the lease or licence, at the level prescribed as of the date of the lease or licence was registered and any change in the prescribed rate of royalty made after the date on which the lease or licence was registered shall not apply to the lessee or holder of the proprietary mining licence during the said ten years’ period.
71
(5)
The Authority may, in circumstances deemed to justify such a course of action, grant to the holder of a mineral tenement, on a yearly basis, a total or partial waiver of royalty.
(6)
The Authority or any officer authorized in writing by it may inspect and examine any book, record and account and obtain any information necessary to ascertain the quantity or value of minerals won in respect of a mineral tenement and any information necessary to verify the amount of any royalty payable.
(7)
Where a mineral tenement is held by more than one person, any person having an interest in the mineral tenement shall be held jointly and severally liable for the payment of the royalty in respect of the mineral tenement.