Western Australian Current Acts

[Index] [Table] [Search] [Search this Act] [Notes] [Noteup] [Previous] [Next] [Download] [Help]

DUTIES ACT 2008 - SECT 91M

91M .         Farm-in transactions and other concepts

        (1)         A farm-in transaction is an agreement, whether conditional or not, to the effect that —

            (a)         as set out in paragraphs (b) to (d), the agreement relates to either or both of the following —

                  (i)         the mining tenement, or 1 or more of the mining tenements, referred to in section 91L(1)(a)(i) (each such mining tenement to which the agreement relates being a relevant mining tenement );

                  (ii)         the derivative mining right, or 1 or more of the derivative mining rights, referred to in section 91L(1)(a)(ii) (each such derivative mining right to which the agreement relates being a relevant derivative mining right );

                and

            (b)         the farmee is to fulfil, or has the option of fulfilling, an exploration requirement; and

            (c)         if paragraph (a)(i) applies — after the farmee fulfils the exploration requirement, the farmor is to do, or the farmee has the option of requiring the farmor to do, either or both of the following —

                  (i)         transfer to the farmee an interest in each relevant mining tenement;

                  (ii)         grant the farmee a derivative mining right in relation to each relevant mining tenement;

                and

            (d)         if paragraph (a)(ii) applies — after the farmee fulfils the exploration requirement, the farmor is to arrange, or the farmee has the option of requiring the farmor to arrange, for the farmee to acquire an interest in each relevant derivative mining right.

        (2)         Despite subsection (1), an agreement is not a farm-in transaction if —

            (a)         otherwise than under a purchase agreement, the farmee is to acquire, or has the option of acquiring, a beneficial interest without fulfilling the exploration requirement; and

            (b)         the beneficial interest corresponds (wholly or partly) to a legal interest that the farmee is to acquire, or has the option of acquiring, after fulfilling the exploration requirement as contemplated in subsection (1)(c)(i) or (ii) or (d).

        (3)         The requirement of subsection (1)(c)(i) is met only if —

            (a)         the agreement specifies —

                  (i)         the interest or interests to be transferred; or

                  (ii)         the way in which the interest or interests are to be determined;

                and

            (b)         in relation to each relevant mining tenement, the interest to be transferred is, or will be, such that, were the transfer to be made, the farmor and farmee would both be, or would still both be, holders of the relevant mining tenement.

        (4)         The requirement of subsection (1)(c)(ii) is met only if —

            (a)         the agreement specifies —

                  (i)         the mining to be authorised by each derivative mining right; or

                  (ii)         the way in which that mining is to be determined;

                and

            (b)         in relation to each relevant mining tenement, were the derivative mining right to be granted, the grant would not result in the farmee having, at any time, substantially the same authority to carry out mining that the farmor has, at that time, under the relevant mining tenement.

        (5)         The requirement of subsection (1)(d) is met only if —

            (a)         the agreement specifies —

                  (i)         the interest or interests to be acquired; or

                  (ii)         the way in which the interest or interests are to be determined;

                and

            (b)         in relation to each relevant derivative mining right, the interest to be acquired is, or will be, such that, were it to be acquired, the farmor and farmee would both be, or would still both be, holders of the relevant derivative mining right.

        (6)         A replacement mining tenement , for a relevant mining tenement, is a mining tenement —

            (a)         that is granted, after the making of the farm-in transaction concerned, to replace (wholly or partly) —

                  (i)         the relevant mining tenement; or

                  (ii)         an earlier replacement mining tenement for the relevant mining tenement; or

                  (iii)         a mining tenement referred to in subparagraph (i) or (ii), together with 1 or more other mining tenements each of which is also a relevant mining tenement for the farm-in transaction or a replacement mining tenement for such a relevant mining tenement;

                and

            (b)         that relates only to the land, or to a part of the land, the subject of —

                  (i)         the mining tenement that is replaced; or

                  (ii)         the mining tenements that are replaced (taken together as if they were a single mining tenement);

                and

            (c)         of which the farmor is the holder or 1 of the holders.

        (7)         A replacement derivative mining right , for a relevant derivative mining right, is a derivative mining right —

            (a)         that is granted, after the making of the farm-in transaction concerned, to replace (wholly or partly) —

                  (i)         the relevant derivative mining right; or

                  (ii)         an earlier replacement derivative mining right for the relevant derivative mining right; or

                  (iii)         a derivative mining right referred to in subparagraph (i) or (ii), together with 1 or more other derivative mining rights each of which is also a relevant derivative mining right for the farm-in transaction or a replacement derivative mining right for such a relevant derivative mining right;

                and

            (b)         that relates only to the land, or to a part of the land, the subject of —

                  (i)         the derivative mining right that is replaced; or

                  (ii)         the derivative mining rights that are replaced (taken together as if they were a single derivative mining right);

                and

            (c)         subject to subsection (8), that does not authorise any mining beyond the mining authorised by —

                  (i)         the derivative mining right that is replaced; or

                  (ii)         the derivative mining rights that are replaced;

                and

            (d)         of which the farmor is the holder or 1 of the holders.

        (8)         The requirement of subsection (7)(c) does not have to be met if —

            (a)         the derivative mining right is granted in relation to a mining tenement (the new mining tenement ) that was granted to replace (wholly or partly) another mining tenement (the previous mining tenement ); and

            (b)         the new mining tenement authorises mining beyond the mining authorised by the previous mining tenement; and

            (c)         the derivative mining right only authorises mining for minerals for which mining is authorised by —

                  (i)         the derivative mining right that is replaced; or

                  (ii)         the derivative mining rights that are replaced.

        (9)         A purchase agreement , in relation to a farm-in transaction, is an agreement made between the farmor and farmee to the effect that —

            (a)         the farmee is to provide consideration, or has the option of providing consideration, to the farmor; and

            (b)         the providing of the consideration by the farmee would be in lieu of the farmee fulfilling a part (but not the whole) of the exploration requirement; and

            (c)         were the farmee to provide the consideration — the farm-in transaction would be varied —

                  (i)         so as to reduce the exploration requirement by excluding the part referred to in paragraph (b); and

                  (ii)         so that, accordingly, the reduced exploration requirement would become the exploration requirement for the farm-in transaction.

        [Section 91M inserted: No. 37 of 2022 s. 8.]



AustLII: Copyright Policy | Disclaimers | Privacy Policy | Feedback