Seán Kyne (Galway West, Fine Gael) | Oireachtas source

That is more a question for the Minister for Finance but we can provide clarity on that at a future point. There have been cases where royalties have been deferred but have been paid back to the State subsequently, as base metal prices recovered. That flexibility is important to ensure the viability of mines which may go through a period of months or years when there was a collapse in prices, for instance.

The royalty rates are consistent with international rates. The international rates for base metals are between 0% and 5% and Ireland's rate is between 3.75% for State minerals and about 1.5% for private minerals of net smelter return. Other countries including Sweden, Norway and Finland, do not charge royalties. Australia, which is a mining country, imposes a royalty rate of between 2% and 2.5%. As I noted earlier, there is also corporation tax.

Exploration costs and capital expenditure can be written off corporation tax but not royalties.

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