Written answers
Tuesday, 10 June 2025
Department of Public Expenditure and Reform
Mining Industry
Gerald Nash (Louth, Labour)
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429. To ask the Minister for Public Expenditure and Reform if any request has been made by a Government Department or a company (details supplied) for a deferral or review of royalties as they apply to the operation of a mine; and if he will make a statement on the matter. [29848/25]
Jack Chambers (Dublin West, Fianna Fail)
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The Minister for Climate, Energy and the Environment is responsible for the oversight and regulation of mineral exploration and mining activities in Ireland.
Under the Minerals Development Acts, royalties from mineral extraction are negotiated on a case-by-case basis. The Minerals Development Act 1940 Section 26 (2) (c) provides that:
“unless the Minister, with the concurrence of the Minister for Finance, is of opinion that such lease should in the public interest be made free of payment, such lease shall be made subject to the payment to the Minister of such moneys, whether by way of fine or preliminary payment or by way of rent (including a royalty rent) or by any or all of such ways, as the Minister, with the concurrence of the Minister for Finance, shall think proper and shall agree upon with the lessee”.
The Ministers and Secretaries (Amendment) Act 2011 transferred responsibility in this regard from the Minister for Finance to the Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation.
Any requests for the deferral of mining royalties go to the Geoscience Regulations Office in the Department of Climate, Energy and the Environment. Any decisions must be made by the Minister for Climate, Energy and the Environment with my concurrence, in line with the relevant legislation.
Boliden Tara Mines operates five State Mining Licences and three State Mining Leases. In 2021, 2022 and 2023 the Department of Climate, Energy and the Environment sought my Department’s approval to extend these licences and leases by supplementary indenture agreement for 12 months. These extensions were approved under the existing terms and conditions (including royalties) of the licences and leases, while negotiations were underway on a new long term regime.
A further request was made to my Department in January 2024 seeking agreement for the Department of Climate, Energy and the Environment to enter negotiations with Boliden Tara Mines on the renegotiation of royalty rates, for which sanction was granted in February 2024.
In November 2024, the Department of Climate, Energy and the Environment sought approval to extend the eight licences and leases for a further 12 months to allow them to draft regulations to finalise an agreement reached with Boliden Tara Mines from the negotiations sanctioned in February 2024. Approval for this extension was granted in November 2024.
This extension was granted under the terms and conditions agreed for the long term extension of these licences and leases. As published in the Report to the Oireachtas on Mineral Exploration and Mining in Ireland for the six months ended 31 December 2024, this involves royalties for the eight Leases and Licences being fully abated for the period 1st December 2024 to 30th November 2025.
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