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This is a Bill, not an Act. For current law, see the Acts databases.
New South Wales
Mining Amendment (Small-Scale Title
Compensation) Bill 2014
Explanatory note
This explanatory note relates to this Bill as introduced into Parliament.
Overview of Bill
The objects of this Bill are:
(a) to regulate the compensation paid by the holders of small-scale titles over land to
landholders, and
(b) to provide mechanisms for dealing with disputes between landholders and holders of
small-scale titles or applicants for small-scale titles, and
(c) to provide for levies on small-scale titles for purposes associated with those titles and the
establishment of the Small-Scale Titles Levy Fund in the Special Deposits Account.
Outline of provisions
Clause 1 sets out the name (also called the short title) of the proposed Act.
Clause 2 provides for the commencement of the proposed Act on a day or days to be appointed
by proclamation.
Schedule 1 Amendment of Mining Act 1992 No 29
Schedule 1 [5] provides for the compensation payable to landholders in respect of the granting
(including the granting of a renewal) of small-scale titles (being mineral claims or opal
prospecting licences). On the grant of a small-scale title the landholder of the land concerned
becomes entitled to compensation in lieu of compensation for any compensable loss suffered, or
likely to be suffered, by the landholder. The Minister for Resources and Energy (the Minister) can
determine by order an amount of compensation (standard compensation) that is payable. Any
b2013-131-31.d17
Mining Amendment (Small-Scale Title Compensation) Bill 2014 [NSW]
Explanatory note
such order may prescribe different amounts for different mineral claims districts or opal
prospecting areas and may provide for the standard compensation to be indexed on an annual or
other basis.
The Secretary of the Department of Trade and Investment, Regional Infrastructure and Services
(the Secretary) is not permitted to grant a small-scale title unless satisfied that the applicant has
paid to the collection agency on behalf of any landholder entitled to compensation the standard
compensation for the term of the small-scale title (unless the applicant and landholder have
entered into an agreement as an alternative to standard compensation (a compensation
agreement)).
Regulations under the Mining Act 1992 may nominate a government sector agency or the head of
a government agency as the collection agency.
The Secretary must also be satisfied that the applicant has given the landholder a notice that states
the applicant's intention to exercise rights under the small-scale title and identifies the land to
which the small-scale title applies. The small-scale title cannot be granted if it is for the renewal
of a mineral claim and there is an outstanding amount of compensation (other than compensation
under a compensation agreement) payable by the applicant to a landholder under the mineral
claim. However, the Secretary may grant a small-scale title in circumstances where there is
compensation owing or where no notice has been given if the Secretary is satisfied that this is
because the applicant could not sufficiently identify the landholder and has taken all reasonable
steps to do so.
If there is no standard compensation applicable to a small-scale title the applicant for the title or
the landholder may apply to the Land and Environment Court to determine the amount of
compensation payable. The Court, in making such a determination, is to take into account any
determinations of standard compensation made by the Minister. The amount of compensation
determined by the Court is taken to be standard compensation in respect of the granting of the
particular small-scale title and (if there is no subsequent determination of standard compensation
by the Minister) the renewal of the title.
A landholder may apply to the Land and Environment Court for compensation from the holder of
a small-scale title for all compensable loss suffered, or likely to be suffered, by the landholder.
The Court may award such additional compensation only if satisfied that there are exceptional
circumstances that justify such an award.
No appeal lies against a determination of compensation by the Minister or the Land and
Environment Court.
The Minister, in determining an amount of standard compensation payable cannot vary or
substitute an amount previously determined unless 5 years have passed since that determination
and the Minister has caused an independent review to be conducted into the appropriate levels of
standard compensation and has considered the findings of that review.
Schedule 1 [6] makes an amendment consequential on the amendments made by Schedule 1 [5].
Schedule 1 [8] permits the Minister to impose a levy on small-scale titles for particular purposes.
These purposes include the provision and maintenance of roads servicing small-scale titles and
rehabilitation or environmental maintenance work on stockpiles of mullock or other land affected
by work related to small-scale titles. The order is to specify the amount of the levy and the
purposes for which the levy will be used. The holder of a small-scale title is required to pay to the
Secretary the amount of any levy imposed on the small-scale title at such times as may be required.
Money collected by way of a levy is to be used for the purposes for which the levy was imposed
and the Secretary may award a grant to a person out of that money if satisfied that the grant is
consistent with the purposes for which the levy was imposed and is appropriate and reasonable for
achieving those purposes. Schedule 1 [9] establishes the Small-Scale Titles Levy Fund in the
Special Deposits Account for the purposes of such levies. Schedule 1 [11] allows the regulations
under the Mining Act 1992 to regulate the imposition of such levies. Schedule 1 [2] and [4]
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Mining Amendment (Small-Scale Title Compensation) Bill 2014 [NSW]
Explanatory note
provide that an application for the grant of a small-scale title may be refused if the applicant has
failed to pay any such levy.
Schedule 1 [1] and [3] remove provisions that allow the Minister, by order published in the
Gazette, to include conditions as to the compensation payable in respect of the carrying out of
prospecting and mining operations under small-scale titles.
Schedule 1 [10] gives the Land and Environment Court jurisdiction to hear questions or disputes
in connection with compensation agreements.
Schedule 1 [12] includes savings and transitional provisions and a provision that validates a
former scheme for the collection of money from the holders of small-scale titles for the purpose
of providing appropriate land tenure for persons living on land covered by (or formerly covered
by) small-scale titles within Western Lands leases. The validation makes sure that money
collected by or on behalf of the Department of Trade and Investment, Regional Infrastructure and
Services and any predecessor of the Department was lawfully collected if it was collected for that
purpose. The validation also applies to money expended for that purpose or for any ancillary
purpose.
Schedule 1 [7] omits a redundant provision.
Schedule 2 Amendment of other Acts
Schedule 2.1 amends the Land and Environment Court Act 1979 to require that any proceedings
that relate to small-scale titles (other than proceeding in the nature of a judicial review) are to have
a mandatory conciliation conference, which may be conducted on-site or at any other place
determined by the Commissioner who presides over the conference. If an agreement cannot be
reached, the Commissioner is to terminate the conciliation conference and dispose of the
proceedings following an immediate hearing or, if the parties agree, on the basis of what occurred
at the conciliation conference. However, in certain circumstances the Land and Environment
Court or the Commissioner may determine that the proceedings are better determined by the Court
in which case they are to be dealt with as a hearing in court.
Schedule 2.2 amends the Mining Amendment Act 2008 to omit items that have been rendered
redundant by the amendments in Schedule 1.
Schedule 3 Amendment of Mining Act 1992 No 29--statute
law revision amendments
Schedule 3 updates references as a consequence of the change of name of a Government
Department and the enactment of the Government Sector Employment Act 2013.
Page 3
First print
New South Wales
Mining Amendment (Small-Scale Title
Compensation) Bill 2014
Contents
Page
1 Name of Act 2
2 Commencement 2
Schedule 1 Amendment of Mining Act 1992 No 29 3
Schedule 2 Amendment of other Acts 9
Schedule 3 Amendment of Mining Act 1992 No 29--statute law revision
amendments 10
b2013-131-31.d17
New South Wales
Mining Amendment (Small-Scale Title
Compensation) Bill 2014
No , 2014
A Bill for
An Act to amend the Mining Act 1992 and other legislation to provide, in respect of small-scale
titles, a system for the payment of compensation to landholders, mechanisms for resolving
disputes and the imposition of levies; and for other purposes.
Mining Amendment (Small-Scale Title Compensation) Bill 2014 [NSW]
The Legislature of New South Wales enacts: 1
1 Name of Act 2
This Act is the Mining Amendment (Small-Scale Title Compensation) Act 2014. 3
2 Commencement 4
This Act commences on a day or days to be appointed by proclamation. 5
Page 2
Mining Amendment (Small-Scale Title Compensation) Bill 2014 [NSW]
Schedule 1 Amendment of Mining Act 1992 No 29
Schedule 1 Amendment of Mining Act 1992 No 29 1
[1] Section 175 Special conditions 2
Omit section 175 (2) (g). 3
[2] Section 190 Power of Secretary in relation to applications 4
Insert after section 190 (2) (a): 5
(a1) that the applicant has failed to pay any levy required under 6
section 292SA in relation to the mineral claim, 7
[3] Section 223A Special conditions 8
Omit section 223A (2) (e). 9
[4] Section 228 Power of Secretary in relation to applications 10
Insert after section 228 (2) (a): 11
(a1) that the applicant has failed to pay any levy required under 12
section 292SA in relation to the opal prospecting licence, 13
[5] Section 266 14
Omit sections 266 and 267. Insert instead: 15
266 Compensation arising under small-scale title 16
(1) On the granting of a small-scale title, a landholder becomes entitled to 17
compensation determined under this section in lieu of compensation for any 18
compensable loss suffered, or likely to be suffered, by the landholder as a 19
result of the exercise of the rights conferred by the small-scale title. 20
Note. Small-scale title means a mineral claim or an opal prospecting licence. 21
(2) The Minister may determine the compensation payable (standard 22
compensation) for the purposes of subsection (1) and the quantum of any 23
standard compensation is at the discretion of the Minister. 24
(3) A determination of the Minister is to be made by order published in the Gazette 25
and any such order: 26
(a) may prescribe different amounts of standard compensation for different 27
mineral claims districts or opal prospecting areas, and 28
(b) may provide for standard compensation to be indexed on an annual or 29
other basis. 30
(4) The Secretary must not grant a small-scale title to an applicant unless satisfied 31
that: 32
(a) the applicant has paid to the collection agency on behalf of any 33
landholder entitled to compensation on the granting of the small-scale 34
title the standard compensation for the term of the small-scale title 35
(unless the applicant and landholder have entered into an agreement as 36
an alternative to standard compensation (a compensation agreement)), 37
and 38
(b) the applicant has given, in the manner prescribed by the regulations, any 39
such landholder a notice that states the applicant's intention to exercise 40
rights under the small-scale title and that identifies (by map or 41
otherwise) the land to which the small-scale title applies, and 42
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Mining Amendment (Small-Scale Title Compensation) Bill 2014 [NSW]
Schedule 1 Amendment of Mining Act 1992 No 29
(c) if the application is for the renewal of a mineral claim, the applicant has, 1
no later than 28 days after lodging the application, paid all outstanding 2
amounts of compensation payable by the applicant to the landholder 3
under the mineral claim (other than compensation that may be payable 4
under a compensation agreement). 5
(5) The Secretary may grant a small-scale title to an applicant despite the 6
applicant failing to satisfy the Secretary of a matter specified in subsection (4) 7
if the Secretary is satisfied that the failure occurred because the applicant, after 8
taking all reasonable steps, has been unable to sufficiently identify a 9
landholder for the purposes of this section. Nothing in this subsection affects 10
the right of a landholder to compensation under this section. 11
(6) The Land and Environment Court: 12
(a) may determine the compensation payable for the purposes of 13
subsection (1) in respect of a small-scale title for which no standard 14
compensation has been determined by the Minister, and 15
(b) may make any such determination on the application of the landholder 16
or the applicant for the small-scale title, and 17
(c) in determining the compensation payable is to have regard to any 18
determinations of standard compensation made by the Minister. 19
(7) Compensation determined by the Court under subsection (6) is taken to be 20
standard compensation in respect of: 21
(a) the grant of the relevant small-scale title, and 22
(b) the grant of a renewal of the title (but only if the Minister does not, 23
within the term of the title, make a determination of standard 24
compensation in respect of the title). 25
(8) The Land and Environment Court may, in exceptional circumstances and 26
despite subsection (1), award a landholder compensation for the compensable 27
loss suffered, or likely to be suffered, by the landholder as a result of the 28
exercise of the rights conferred by a small-scale title, but only if: 29
(a) the application for such compensation is made to the Court no later 30
than 60 days after the notice under subsection (4) (b) is given to the 31
landholder in respect of the title, and 32
(b) there is no compensation agreement in place in respect of the title 33
between the landholder and the person from whom compensation is 34
sought. 35
(9) Division 3 does not apply to a determination of compensation under this 36
section. However, sections 271, 272 (other than section 272 (1) (b) (i)) 37
and 275 do apply to a determination of compensation under subsection (8). 38
(10) No appeal lies against a determination of compensation under this section. 39
(11) The Minister cannot vary or substitute a standard compensation amount 40
previously determined by the Minister under this section unless: 41
(a) at least 5 years have passed since that previous determination, and 42
(b) the Minister has caused an independent review to be conducted into the 43
appropriate levels of standard compensation and has considered the 44
findings of that review. 45
Page 4
Mining Amendment (Small-Scale Title Compensation) Bill 2014 [NSW]
Schedule 1 Amendment of Mining Act 1992 No 29
(12) The regulations may make provisions for or with respect to the collection of 1
standard compensation by the collection agency and the payment of that 2
compensation to landholders, and in particular may: 3
(a) prescribe fees in respect of the exercise of functions by or on behalf of 4
the collection agency under this section, and 5
(b) permit any such function to be delegated to Service NSW as a customer 6
service function. 7
(13) In this section: 8
collection agency means a government sector agency or the head of a 9
government sector agency nominated by the regulations as the collection 10
agency. 11
grant of a small-scale title includes, in the case of a mineral claim, the grant 12
of a renewal of the small-scale title. 13
term of a small-scale title includes, in the case of the renewal of a mineral 14
claim, any period during which, before its renewal, the mineral claim was 15
taken to continue to have effect under section 197 (3). 16
[6] Section 267A Effect of determination and payment of compensation under 17
provisions of Commonwealth Native Title Act 18
Omit ", 266 or 267" from section 267A (1) (a). Insert instead "or 266". 19
[7] Section 278 Appeals 20
Omit the section. 21
[8] Part 14AA 22
Insert after Part 14A: 23
Part 14AA Small-scale title levies 24
292SA Levy may be imposed by Minister 25
(1) The Minister may, by order published in the Gazette, impose a levy on 26
small-scale titles for any one or more of the following purposes: 27
(a) the provision and maintenance of roads servicing small-scale titles and 28
road related infrastructure (including gates, grids and signs), 29
(b) rehabilitation or environmental maintenance work on land not held 30
under a small-scale title but affected by work relating to small-scale 31
titles, 32
(c) rehabilitation or environmental maintenance work on stockpiles of 33
mullock, 34
(d) any purpose prescribed by the regulations, 35
(e) any purpose ancillary to a purpose set out in paragraphs (a)-(d). 36
(2) The amount of the levy is the amount specified in the order. 37
292SB Orders imposing levy 38
(1) An order of the Minister under section 292SA (a levy order) is to set out the 39
purpose for which the levy is being imposed. 40
(2) A levy order may impose a levy that is payable once only or may impose a levy 41
that is payable on a recurrent basis as specified in the order. 42
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Mining Amendment (Small-Scale Title Compensation) Bill 2014 [NSW]
Schedule 1 Amendment of Mining Act 1992 No 29
(3) A levy order may apply to all small-scale titles or be limited to small-scale 1
titles of a specified class. 2
(4) More than one levy order may be made under this Part and more than one levy 3
may be imposed on a particular small-scale title. 4
292SC Holder of small-scale title required to pay levy 5
(1) The holder of a small-scale title is required to pay to the Secretary the amount 6
of any levy imposed on the small-scale title under this Part at such times as 7
may be required by the order imposing the levy. 8
(2) The Secretary may recover the amount of any such levy from the holder of a 9
small-scale title as a debt in any court of competent jurisdiction. 10
292SD Use of money raised through levy 11
(1) Money collected by way of a levy under this Part is to be used for the purposes 12
for which the levy was imposed. 13
(2) The Secretary may, on the application of a person, award a grant to the person 14
from any money collected by way of any such levy if the Secretary is satisfied 15
that the grant is consistent with the purposes for which the levy was imposed 16
and is appropriate and reasonable for achieving those purposes. 17
[9] Section 292V 18
Insert after section 292U: 19
292V Small-Scale Titles Levy Fund 20
(1) There is to be established in the Special Deposits Account a fund called the 21
Small-Scale Titles Levy Fund. 22
(2) The Small-Scale Titles Levy Fund is to be administered by the Secretary. 23
(3) There is payable into the Small-Scale Titles Levy Fund: 24
(a) small-scale title levies payable under Part 14AA of this Act, and 25
(b) all money directed or authorised to be paid into the Small-Scale Titles 26
Levy Fund by or under this or any other Act, and 27
(c) the proceeds from the investment of money in the Small-Scale Titles 28
Levy Fund. 29
(4) There is payable from the Small-Scale Titles Levy Fund: 30
(a) such amounts as the Secretary awards as grants under section 292SD, 31
and 32
(b) administrative expenses incurred in relation to the Small-Scale Titles 33
Levy Fund, and 34
(c) administrative expenses incurred in relation to the collection and 35
recovery of amounts payable into the Small-Scale Titles Levy Fund, 36
and 37
(d) any refund required under this Act of an amount paid as a small-scale 38
title levy. 39
(5) The Small-Scale Titles Levy Fund is to be divided into separate accounts in 40
respect of levies collected for different purposes referred to in section 292SA 41
to ensure that, as far as is practicable, money collected by way of a levy is used 42
for the purposes for which the levy was imposed. 43
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Mining Amendment (Small-Scale Title Compensation) Bill 2014 [NSW]
Schedule 1 Amendment of Mining Act 1992 No 29
(6) The Secretary may invest money in the Small-Scale Titles Levy Fund in any 1
manner authorised by the Public Authorities (Financial Arrangements) 2
Act 1987. 3
(7) The annual report of the Department is to include details of the amounts paid 4
from the Small-Scale Titles Levy Fund during the financial year to which the 5
report relates and the purposes for which those payments were made. 6
[10] Section 293 Jurisdiction of Land and Environment Court 7
Insert after section 293 (1) (t): 8
(t1) any question or dispute in connection with a compensation agreement 9
under section 266, 10
[11] Schedule 4 Regulation making powers 11
Insert after clause 6: 12
7 Levies on small-scale titles 13
Regulating the imposition of levies on small-scale titles and authorising the 14
postponement, refund or waiver of such levies. 15
[12] Schedule 6 Savings, transitional and other provisions 16
Insert at the end of the Schedule with appropriate Part and clause numbering: 17
Part Provisions consequent on enactment of Mining 18
Amendment (Small-Scale Title Compensation) 19
Act 2014 20
Validation of scheme for the collection of funds from small-scale title holders 21
(1) In this clause: 22
Department includes a predecessor of the Department. 23
the Scheme means the scheme established within the Department to provide 24
for the voluntary surrender of land held under Western Lands leases to 25
facilitate the grant of leases for residence to cover the area of mineral claims 26
known as residential mineral claims, and for the payment of compensation in 27
connection with any such voluntary surrender. 28
(2) Money collected by, or on behalf of, the Department from holders of 29
small-scale titles before the commencement of this clause, was lawfully 30
collected if it was collected for the purposes of the Scheme. 31
(3) Money expended, whether before or after the commencement of this clause, 32
from money referred to in subclause (2) is lawfully expended if it is expended 33
for the purposes of the Scheme including for purposes ancillary to the Scheme. 34
Agreements taken to be compensation agreements 35
An agreement, between a landholder and the holder of a small-scale title under 36
section 266 (2) (a) or 267 (2) (a), that was in force immediately before the 37
substitution of section 266 by the Mining Amendment (Small-Scale Title 38
Compensation) Act 2014 is taken, on that substitution, to be a compensation 39
agreement under section 266. 40
Page 7
Mining Amendment (Small-Scale Title Compensation) Bill 2014 [NSW]
Schedule 1 Amendment of Mining Act 1992 No 29
Appeals 1
Section 278 (2) as repealed by the Mining Amendment (Small-Scale Title 2
Compensation) Act 2014 continues to apply in respect of an assessment of 3
compensation made before that repeal. 4
Page 8
Mining Amendment (Small-Scale Title Compensation) Bill 2014 [NSW]
Schedule 2 Amendment of other Acts
Schedule 2 Amendment of other Acts 1
2.1 Land and Environment Court Act 1979 No 204 2
Section 41A 3
Insert before section 42: 4
41A Mandatory conciliation and arbitration 5
(1) This section applies to proceedings relating to small-scale titles that are 6
pending in Class 8 of the Court's jurisdiction to hear and dispose of 7
proceedings arising under the Mining Act 1992 other than proceedings relating 8
to a matter referred to in section 293 (1) (q) of that Act. 9
(2) Section 34 applies to the proceedings (in the same way as it applies to 10
proceedings in Class 1, 2 or 3 of the Court's jurisdiction) but with the 11
following modifications: 12
(a) the Court must arrange a conciliation conference between the parties 13
and their representatives with or without their consent at such place as 14
the Court determines, 15
(b) if no agreement of a kind referred to in section 34 (3) is reached, the 16
Commissioner who presides over the conciliation conference must 17
terminate the conciliation conference and, subject to this section, 18
dispose of the proceedings: 19
(i) following a hearing held forthwith, or 20
(ii) if the parties consent, on the basis of what has occurred at the 21
conciliation conference. 22
(3) The Court or the Commissioner may at any time, if the Court or Commissioner 23
thinks it appropriate in the circumstances of the case, determine that 24
proceedings are not to be dealt with or are not to continue to be dealt with 25
under subsection (2). A determination may be made on the motion of the Court 26
or Commissioner or on application by the parties. 27
(4) If the Court or Commissioner determines that proceedings are not to be dealt 28
with or are not to continue to be dealt with under subsection (2), the 29
proceedings are to be dealt with as a hearing in court and sections 38 and 39 30
apply as far as is relevant as if the proceedings were proceedings in Class 1, 2 31
or 3 of the Court's jurisdiction. 32
2.2 Mining Amendment Act 2008 No 19 33
[1] Schedule 1 Amendment of Mining Act 1992 34
Omit Schedule 1 [228], [229], [231]-[235], [240] and [285]. 35
[2] Schedule 1 [246C] 36
Omit proposed section 293 (1) (v2). 37
Page 9
Mining Amendment (Small-Scale Title Compensation) Bill 2014 [NSW]
Schedule 3 Amendment of Mining Act 1992 No 29--statute law revision amendments
Schedule 3 Amendment of Mining Act 1992 No 29--statute 1
law revision amendments 2
[1] The whole Act (Schedule 6 excepted) 3
Omit "Director-General" wherever occurring. Insert instead "Secretary". 4
[2] Sections 163 (9), 261BC (4) (b) and (9) (a), 261BD (1), 261BE (1) and (4) and 293 (1) (u) 5
Omit "Director-General's" wherever occurring. Insert instead "Secretary's". 6
[3] Dictionary 7
Omit the definitions of Department and Director-General. 8
Insert in alphabetical order: 9
Department means the Department of Trade and Investment, Regional 10
Infrastructure and Services. 11
Secretary means the Secretary of the Department. 12
Page 10
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