Queensland Consolidated Acts

MINERAL RESOURCES ACT 1989 - SECT 144

144 Provision of security

(1) Before an exploration permit is granted or renewed or a condition of the permit is varied, the Minister, taking into consideration the work program approved for the term, or further term, of the permit, must determine the amount of the security to be deposited by the holder of that permit as reasonable security for—

(a) compliance with the conditions of the exploration permit; and

(b) compliance with the provisions of this Act; and

(c) rectification of any actual damage that may be caused by any person whilst purporting to act under the authority of the exploration permit to pre-existing improvements for the exploration permit; and

(d) amounts (other than penalties) payable to the State under this Act.

(2) A person who holds more than 1 exploration permit may elect to deposit a single amount of security for all exploration permits held by the person.

(3) The Minister is to decide the amount of security to be deposited under subsection (2) .

(4) An exploration permit must not be granted or renewed, and a condition of an exploration permit must not be varied, until the applicant for the grant, renewal or variation deposits the security decided under this section.

(5) If the Minister is satisfied—

(a) a condition of an exploration permit has not been complied with; or

(b) a provision of this Act has not been complied with in relation to an exploration permit; or

(c) someone claiming to act under an exploration permit, or to have entered land on the permit holder’s instructions, caused damage mentioned in subsection (1) (c) ;

the Minister may require the permit holder to take the steps necessary to stop the noncompliance or repair the damage.

(6) Also, the Minister may use any of the security deposited by the holder to stop the noncompliance or repair the damage.

(7) Subsections (5) and (6) do not apply if the holder satisfies the Minister that the person responsible for the noncompliance or damage was not on the land with the holder’s approval or on the holder’s instructions when the noncompliance or damage happened.

(8) If, at any time (whether during or within 20 business days after the expiration of the term of an exploration permit) the amount or any part of the amount deposited under this section is utilised as provided by subsection (5) or (6) or the Minister considers that, in view of the damage caused or likely to be caused by any person purporting to act under the authority of the exploration permit or upon the instruction of the holder or for any other reason, a further amount of security should be deposited in respect of that exploration permit, the Minister shall require the holder or former holder of the exploration permit, within the time specified by the Minister, to deposit the further specified security.

(9) The Minister may accept a bond or a guarantee or indemnity by, or other financial arrangement with, a financial institution, insurance company or another credit provider approved by the Minister or other form of security acceptable to the Minister as the whole or part of the security to be deposited under this section.

(10) It shall be a condition of an exploration permit that the holder shall deposit security or further security from time to time in accordance with a requirement made as provided by this section.

(11) Subject to subsections (13) and (14) , if an exploration permit terminates, the Minister may, not earlier than 6 months after the termination, refund to the permit holder the amount of security deposited for the permit and not used after deducting the amounts the Minister considers should be kept towards—

(a) remedying anything caused by noncompliance with the conditions of the permit or an order or direction given by the Minister to the permit holder; and

(b) amounts (other than penalties) the holder owes to the State under this Act (whether they become owing before or after the termination).

(12) If the Minister accepts a bond, guarantee or indemnity by, or another financial arrangement with, a financial institution, insurance company or credit provider as security under this section, any amount payable to the holder under subsection (11) must be refunded to the financial institution, insurance company or credit provider and not to the holder of the exploration permit to which the security relates.

(13) Subsection (11) does not apply to a person who elects to deposit security for all exploration permits held by the person if the person continues to hold an exploration permit for which the security is held.

(14) However, the Minister may, at the person’s written request, reduce the amount of security held for the person’s exploration permits to an amount decided by the Minister.

(15) If the security deposited was money, an amount equal to the reduction is to be refunded to the person or in accordance with any written direction the holder gives to the chief executive.