Introduction of the mining royalty system in Hungary

The new mining act that becarne effective in Hungary in 1993 instituted the payment of royalties for the minerals produced and sold annually. To arrive at the amount of mineral production, the Hungarian Geological Survey (HGS) conducts the National Inventory, which is used by the Mining Bureau of Hungary (MBH) to verify the mining royalty payment obligations. This paper explains the major legal requirements for the mining royalties and how the values of the minerals are calculated. It also describes the first experience with the declaration and payment of the mining royalties and provides the declared and paid 1995 royalties. The Mining Bureau of Hungary reports on the introduction of the mining royalty system that became effective with the Mining Act in 1993. This article is sponsored by the U.S. Hungarian Science and Technology Joint Fund under Project Joint Fund Number 539.