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Minerals Act Section 132 — Royalty: the cap, how rates and prices are set, and the surcharge
Minerals Act (พระราชบัญญัติแร่) — Section 132.
Plain-English Summary
Holders of mining leases, small-scale mining licences, dressing and metallurgy licences and mineral-possession licences, and persons who notify panning, must pay mineral royalty (ค่าภาคหลวงแร่) on the minerals concerned (Section 131). The royalty rate may not exceed 30 per cent of the market price of the mineral. The actual rate schedule is set by Ministerial Regulation, not in the Act, and the market price of each mineral is set by the Director-General. Where royalty cannot be assessed until dressing or metallurgy is finished, security for payment must be required. If an assessment finds royalty unpaid or under-paid, the person must pay within 30 days of notice, and after that must pay the shortfall plus a surcharge of twice the shortfall (Section 133). A lease holder also pays a special levy of no more than 10 per cent of the royalty on minerals produced under that lease (Section 136).
Official Text
Official Thai text at the Royal Gazette / Office of the Council of State. Translation summary only.
Consult official sourceParent Statute
Minerals Act
พระราชบัญญัติแร่ · B.E. 2560 (2017)
The Minerals Act B.E. 2560 (2017) repeals the earlier Minerals Act B.E. 2510 (1967), its amendments and the mineral royalty Acts, bringing mineral licensing and royalty into one statute (Section 3). The Minister of Natural Resources and Environment and the Minister of Industry each administer the parts of the Act within their own remit (Section 5); the Director-General of the Department of Primary Industries and Mines issues the larger mining leases and the exclusive and special prospecting, dressing, metallurgy and mineral-trade licences. The Act sets up a National Mineral Management Policy Committee and a five-yearly master plan that fixes where mining may and may not take place (Sections 8-19), ties mining to environmental impact assessment under the environmental quality law, adds community hearings and, for underground mining, stakeholder consultation (Sections 56, 82-88), caps royalty at 30 per cent of the market price (Section 132), and sets criminal penalties and civil liability (Sections 139-142 and 153-183).
The summary above is a plain-English educational paraphrase of Section 132 of the Minerals Act. It is not an authoritative translation. For the binding Thai text, consult the Royal Gazette or the Office of the Council of State. Educational use only — not a substitute for advice from a Thai-qualified lawyer.
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