Section 6, No. The Extractive Industries Revenue Act 2018No. The Extractive Industries Revenue Act 2018

(1) Subject to subparagraph (4), all capital allowance expenditureincurred in respect of mineral operations during a year of assessment is placed in a separate pool. (2) Capital allowances are granted with respect to each pool at the rates provided for in subparagraph (3). (3) Capital allowances shall be granted for expenditure pooled under subparagraph (1) for a year of assessment at the following rates: Year of Assessment Amount of Capital Allowance In which expenditure incurred 40% of expenditure Second Year 20% of expenditure Third Year 20% of expenditure Fourth Year 20% of expenditure (4) Capital allowances shall be granted for amounts included in the adjusted cost base of a mineral right (including by reason of a reacquisition under section 9 and bonus payments) according to the following rules: (a) each amount is allocated proportionately over the years of assessment from the year in which the amount is incurred until the year in which the term of the right expires; and (b) the capital allowance for each year is the amount allocated to that year. (5) Capital allowances granted with respect to a particular year of assessment shall be taken in that year and cannot be deferred to a later year of assessment. (6) Where an asset for which capital allowances has been granted under this paragraph is disposed of (or deemed to be disposed of) during a year of assessment- (a) if the consideration received for the disposal exceeds the written down value of the asset, the excess shall be included in calculating chargeable income from the mineral operations for the year; (b) if the written down value of the asset exceeds the consideration received for the disposal, an additional capital allowance shall be granted for the year in an amount equal to the excess; and (c) the relevant pools referred to in subparagraph (1) shall be reduced by the written down value of the asset. (7) In this paragraph- “capital allowance expenditure” means expenditure for which capital allowances are available, either under section 7 of this Act or section 39 of the Income Tax Act, 2000; and “written down value” of an asset means the adjusted cost base of the asset less all capital allowances granted with respect to expenditure included in that cost. No. The Extractive Industries Revenue Act 2018No. The Extractive Industries Revenue Act 2018 59 (b) the minerals are to be supplied under the contract over a period exceeding one year, the method for determining the market value of the minerals supplied in a manner that is consistent with subparagraph (1) may be agreed with the Commissioner General, in consultation with the Minister responsible for finance and the National Minerals Agency, by way of an advance pricing agreement issued as a private ruling under section 168 of the Income Tax Act, 2000. Time for Payment of Royalties 3. The holder of a mineral right shall pay royalties at the following times: (a) in the case of precious stones and special stones, at the time of evaluation referred to in paragraph 2(2), export or delivery under a contract of sale, whichever is earlier; and (b) in the case of other minerals, the last day of the calendar month following export, processing or delivery under a contract of sale, whichever is earlier. INTERPRETATION 4. In this Part– “bulk minerals” means bauxite, rutile, iron ore, tantalum and other minerals as may be prescribed by regulations, but excludes precious metals and precious stones; and “precious metals” has the meaning given in paragraph (a) of the definition of “precious mineral” in section 1 of the Mines and Minerals Act, 2009. PART III: MINERAL RESOURCE RENT TAX (Sections 12 and 13) Mineral Resource Rent Tax Rate