Section 148, The Mines and Minerals Act, 2009

(1) Subject to this Act, the holder of a mineral right shallpay to the Government royalty in respect of any mineral obtained by him pursuant to his mineral right. (2) Royalty is payable pursuant to subsection (1) shall be the following percentages of market value as defined in subsection (3) below- (a) 15% for special stones, defined as those precious stones whose market value is above five-hundred thousand United States Dollars; (b) 6.5% for precious stones; (c) 5% for precious metals; (d) 3% for all other minerals. (3) The term “market value” shall for the purposes of calculation of royalty be the sale value receivable in an arms length transaction without discount, commissions or deductions for the mineral or mineral products on disposal as defined in regulations. (4) Subject to the Income Tax Act, 2000, royalty payable in pursuance of subsection (1) shall constitute an operating cost of the mineral right holder and shall be allowed as a deductible expense in ascertaining his net chargeable income for income tax purposes provided that royalty shall not be imputed as part-payment of any tax on income.