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NSW coal royalties – Instructions for return lodgement

This is a guide for completing your coal royalty return.

It should be read in conjunction with the Mining Act 1992, the Mining Regulation 2016 and the Determination made under section 283(5) of the Mining Act 1992 on 31 December 2008.

Effective Date: 1 July 2023

Chapters

  1. About royalty
  2. Completing your coal royalty return
  3. Coal reject
  4. Your obligations and other information
  5. Definitions

3. Coal reject

Coal reject is the by-product of the mining or processing of coal that contains a mixture of coal and other substances (such as shale) and has either:

  • an energy value (the maximum energy capable of being produced by it on combustion) of less than 16 gigajoules per tonne (dry weight), or
  • contains more than 35 per cent ash (by dry weight).

The leaseholder must pay royalty on coal that is in coal reject only when the coal reject is used or disposed of for energy producing purposes.

If you are required to pay royalty on the coal in coal reject, you must apply to the Minister for Regional NSW for a determination of the rate of royalty that applies to the coal reject. Please visit NSW Mining, Exploration and Geoscience for more information.

Following application to the Minister, the coal reject section will be added to your monthly return.