The mining royalty is an ad valorem tax applied to the gross sales value - the latter being determined according to the official minimum price established fortnightly by the Ministry of Mining and Metallurgy on the basis of the average of daily international prices. The mining royalty rate is 2.5% when the mineral is exported (the mining royalty rate is 1.5% when the mineral is sold on the domestic market). Of the 15% received by the municipality, at least 85% will be devoted to public investment, of which 50% will be devoted to projects related to the impact of the mining operations (article 27 of the Supreme Decree 29577-2008). This applies to the mining royalty that is to be paid for both exports and domestic sales.