Mineral tax for coal and other mines

Coal and other mines include all mines that aren’t quarries and placer gold mines. If you operate a coal or other mine you file your taxes annually using the mineral tax return and pay monthly instalments based on an estimate of your tax liability for the mine’s fiscal year.

Tax rate

You pay mineral tax when your mine is more than covering current operating costs. The amount of tax you pay depends on if you’ve recovered the capital invested in your mine.

Your Cumulative Expenditure Account (CEA) tracks the capital you haven’t yet recovered. While you have a balance in your CEA and still have capital to recover, you pay a 2% Net Current Proceeds (NCP) Tax.

Once you no longer have a balance in your CEA, you pay a 13% Net Revenue Tax. To ensure you only pay one of the two taxes, you can claim a Cumulative Tax Credit to reduce your Net Revenue Tax.