284   Liability to pay royalty—privately owned minerals

(1)  The holder of a mining lease is liable to pay royalty to the Minister on privately owned minerals recovered from the mining area as if those minerals were publicly owned.

(1A)  The holder of a mining sublease is liable to pay royalty to the Minister on privately owned minerals recovered from the sublease area as if those minerals were publicly owned.

(1B)  Despite subsection (1), the holder of a mining lease remains liable to pay royalty on privately owned minerals recovered from a sublease area only to the extent that the royalty has not been paid by the sublessee.

(2)  If royalty (including any interest on royalty) is paid to or recovered by the Minister in respect of a privately owned mineral, the Minister is to pay:

(a)  seven-eighths of the amount so paid or recovered to the owner of the mineral, and

(b)  one-eighth of the amount so paid or recovered to the Treasurer for payment into the Consolidated Fund.

(3)  This section does not apply to a mining (mineral owner) lease.