Issue
Is the movement of ore from a storage facility to a hopper, so that the hopper can feed a conveyer belt that carries the ore to a beneficiation site, a 'mining transport activity' as defined in paragraph 12(a) of the Energy Grants (Credits) Scheme Act 2003 (EGCSA)?
Decision
Yes. The movement of ore from a storage facility to a hopper, so that the hopper can feed a conveyer belt that carries the ore to a beneficiation site, is a 'mining transport activity' as defined in paragraph 12(a) of the EGCSA.
Facts
A mineral ore is mined, crushed and stockpiled at a mine site.
From the stockpile at the mine site, the ore is transported to a storage facility.
The ore stockpiled at the storage facility is moved by front end loaders into a hopper which feeds the ore onto a conveyer belt.
The ore from the hopper travels via the conveyer belt to a beneficiation site.
The ore is beneficiated at the beneficiation site.
Reasons for Decision
Section 53 of the EGCSA provides that you are entitled to an off-road credit if you purchase diesel fuel for a use by you that qualifies. Use 'in mining operations' is a use that qualifies. 'Mining operations' is relevantly defined in subsection 11(1) of the EGCSA as: ... (b) operations for the recovery of minerals, being: (i) mining for those minerals ...; or (ii) the beneficiation of those minerals, or of ores bearing those minerals; and includes: (c) a mining transport activity; or ...
When mineral ores are beneficiated at a place other than the mining site, paragraph 12(a) of the EGCSA relevantly defines a 'mining transport activity' as meaning the journey undertaken for the purpose of transporting the mineral ores from the mining site to the place of beneficiation.
In this instance, the use of a front end loader at the storage facility to place the ore into the hopper for the next stage of the journey to the beneficiation site is an integral part of the journey from the mine site to the place of beneficiation.
Accordingly, the movement of the ore from a storage facility to a hopper, so that the hopper can feed a conveyer belt that carries the ore to a beneficiation site, is a 'mining transport activity' as defined in paragraph 12(a) of the EGCSA.