The Effect of Royalty Systems on Mineral Resources

Arm Royalty systems of different types are used throughout Australia by both state and federal governments to raise revenue and thus facilitate in the proper distribution of mineral wealth. Royalty systems should be neutral and equitable but by their very nature these objectives are impossible to obtain. Because of the individual nature of mineral deposits, in particular variable cutoff grades and tonnages, governments should be aware of the possible trade off between short and long term gains of the particular royalty scheme introduced.