Minerals permit fees, royalties and ERLs
An overview of minerals permit fees, royalties and ERL requirements.
NZP&M's activities include processing and monitoring prospecting, exploration, and mining permits. We collect fees for these activities, as prescribed in the Crown Minerals (Minerals Fees) Regulations 2016.
Fees levels are set to recover costs and are not meant to make a profit. They are separate to - and independent of - the royalties regime, which ensures a fair financial return to the Crown from the development of its minerals estate.
All fees are in $NZD and include GST (Goods and Services Tax)
Prospecting permit - $3,450.00
Exploration permit - $3,450.00
- Tier 1 - $16,675.00
- Tier 2 - $5,750.00
Any application under section 36 of the Act - $3,478.75
Certificate of extension of duration of permit for appraisal work under section 35A of the Act - $4,427.50
Minister’s consent under section 41, 41A, 41B, or 41C of the Act - $2,530.00
All fees are in $NZD and include GST (Goods and Services Tax).
Please Note: NZP&M does not accept manual credit card payments on applications and no longer accepts any payment by cheque.
Payments by telegraphic transfer must ensure overseas bank charges are set to "Ours". Permit holders pay for any bank fees for telegraphic transfers.
Onshore: $63.02 per square kilometre or part of a square kilometre, or $1,610.00, whichever is greater.
Offshore: $3.58 per square kilometre or part of a square kilometre, or $1,610.00, whichever is greater.
Onshore: $358.00 per square kilometre or part of a square kilometre, or $1,610.00, whichever is greater.
Offshore: $10.73 per square kilometre or part of a square kilometre, or $1,610.00, whichever is greater.
- Tier 1 - $2,058.50 per square kilometre or part of a square kilometre, or $1,610.00, whichever is greater.
- Tier 2 - $2,058.50 per square kilometre or part of a square kilometre, or $1,150.00, whichever is greater.
- $102.22 per square kilometre or part of a square kilometre, or $1,610.00, whichever is greater.
Royalties are set to ensure the Crown receives a fair financial return for the development of its minerals to the benefit of New Zealand.
Permit holders may have an obligation to file and pay royalty returns and these are detailed within the appropriate Minerals Programmes or Regulations.
New permits granted since 24 May 2013 are subject to pay royalties under the Crown Minerals (Royalties for Minerals Other than Petroleum) Regulations 2013.
Permits granted under a previous minerals programme continue to pay royalties based on those programmes.
Many current permit holders operate under a past royalty regime. See your permit to identify the royalty regime and minerals programme that apply for it. Usually this will be the regime that applied when the original permit was granted.
Making royalty returns and payments
NZP&M reminds permit holders when a royalty return is due.
We will send you a royalty return form to calculate your royalty liability. It explains the information needed for calculation of royalties, including the accounting profits royalty.
If you are not sure when the due date is, or have not received your form, please contact us.
If you transfer a permit, a permit expires, a permit is surrendered, or a permit is revoked you must make a final royalty return and payment (we will usually send you the necessary form).
Energy Resource Levies on Coal
In addition to royalties, an Energy Resources Levy (ERL) is payable on all coal produced in New Zealand at any time on or after 1 January 1977. Where the total weight of all coal that is produced during a particular month does not exceed 10 tonnes, then no levy shall be payable on that coal for that particular month. However the normal monthly return is still required to be submitted.
The rate of the levy on Coal is $2.00 per tonne except for South Island Lignite which is $1.50 per tonne. The person (company) liable to pay the levy payable on any coal (including South Island lignite) shall be the person who, at the time the coal was produced, was the owner of the coal mine from which the coal was produced. This levy is payable for all coal produced in New Zealand regardless of whether it is Crown owned or privately owned.
Permit holders may have an obligation to file and pay Energy Resources Levies returns within 20 days after the end of each month as detailed under the Energy Resources Levy Act 1976.
Making Energy Resources Levy returns and payments
NZP&M reminds permit holders when an Energy Resources Levy (ERL) return is due.
Energy Resources Levies can be submitted online using our Online Permitting System.
Guidance on submitting an online ERL [PDF 504KB]
Energy Resources Levy Return paper form [PDF 496KB]
If you transfer a permit, a permit expires, a permit is surrendered, a permit is revoked or your private coal mine permanently closes you must make a final Energy Resources Levy return and payment.
If you have any questions regarding your Energy Resources Levy return or payment, please contact us.