Anglo Pacific Group PLC ("Anglo Pacific", the "Company")
(LSE: APF) (TSX: APY) advises that the proposed changes to
royalty rates, which were announced by the Queensland
Government on September 11, 2012, are also expected to
apply to the royalty rate of the coal royalties that the
Company receives from the Kestrel and Crinum mines in
Queensland, Australia, operated by Rio Tinto Limited and
BHP Billiton Limited respectively.
In the 2012-2013 Queensland State Budget, the Queensland
Government announced an increase in the royalty rates for
coal sold, disposed of or used on or after October 1, 2012,
which will also apply to Anglo Pacific's Kestrel and Crinum
royalties. The effective royalty rate for a
particular period depends on the average price per tonne of
coal for the return period and is calculated on a tiered
system. A rise from 10% to 12.5% is proposed where
the average price per tonne is over A$100 and up to and
including A$150, with an additional band of 15% where the
average price is more than A$150 per tonne. The first
A$100 will continue to attract a royalty rate of 7%.
More information can be found on the royalty rates section
of the website of the Queensland Government Office of State
Revenue www.osr.qld.gov.au/royalties/rates.shtml.
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