Western Australian Current Regulations

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MINING REGULATIONS 1981 - REG 21

21 .         Expenditure condition

        (1)         The holder of an existing exploration licence shall expend, or cause to be expended, in mining on or in connection with mining on the licence during each year of the term of the licence or, where the term of the licence is extended under section 61(2) —

            (a)         during each of years 1 to 5 of that term, not less than $300 for each square kilometre or part thereof of the area of the licence with a minimum of $20 000; or

            (b)         during each of years 6 and 7 of the term of the licence, not less than $50 000 per year irrespective of the area of the licence; or

            (c)         during year 8 and each subsequent year of the term of the licence, not less than $100 000 per year irrespective of the area of the licence.

        (1aa)         Expenditure incurred under subregulation (1) or (1b) during the month in which the anniversary date of the commencement of the term of the licence occurs may be treated by the holder as expenditure incurred in either the year immediately preceding that anniversary date or the year starting from such date (including any period referred to in subregulation (1c)).

        (1a)         Where a part of a block comprises or is included in the land in respect of which an exploration licence is granted, the whole of that block is deemed to be subject to the licence for the purposes of subregulation (1b).

        (1b)         The holder of a graticular exploration licence shall expend, or cause to be expended, in mining on or in connection with mining on the licence —

            (a)         during each of years 1 to 3 of the term of the licence, $1 000 per block —

                  (i)         with a minimum of $10 000 where one block only is subject to the licence;

                  (ii)         with a minimum of $15 000 where 2 to 5 blocks are subject to the licence;

                  (iii)         with a minimum of $20 000 where 6 or more blocks are subject to the licence;

                or

            (b)         during each of years 4 and 5 of the term of the licence, $1 500 per block —

                  (i)         with a minimum of $10 000 where one block only is subject to the licence;

                  (ii)         with a minimum of $20 000 where 2 to 5 blocks are subject to the licence;

                  (iii)         with a minimum of $30 000 where 6 or more blocks are subject to the licence;

                or

            (c)         during each of years 6 and 7 of the term of the licence, $2 000 per block —

                  (i)         with a minimum of $15 000 where one block only is subject to the licence;

                  (ii)         with a minimum of $30 000 where 2 to 5 blocks are subject to the licence;

                  (iii)         with a minimum of $50 000 where 6 or more blocks are subject to the licence;

                or

            (d)         during year 8, and each subsequent year of the term of the licence, $3 000 per block —

                  (i)         with a minimum of $20 000 where one block only is subject to the licence;

                  (ii)         with a minimum of $50 000 where 2 to 5 blocks are subject to the licence;

                  (iii)         with a minimum of $70 000 where 6 or more blocks are subject to the licence.

        (1c)         Subregulations (1) and (1b) apply in respect of any period in which an exploration licence continues in force because of —

            (a)         an application to extend the term of the licence under section 61; or

            (b)         an application for a lease under section 67; or

            (c)         an application for a retention licence under section 70B,

                except that the amount to be expended during that period is to be calculated on a pro rata basis for each whole month from the last anniversary date of the commencement of the term of the licence until the application is determined.

        (1d)         If an application for the extension of the term of an exploration licence is granted after the date on which the licence would have expired (but for section 61(3)), the amount to be expended under subregulation (1) or (1b) during the period from the date on which the application is granted until the next anniversary date of the term of the licence is to be calculated on a pro rata basis for each whole month of that period.

        (1e)         The specific provisions in regulation 96C, relating to allowable expenditure and non‑allowable expenditure for the purposes of calculating expenditure under a licence, apply when calculating expenditure under this regulation.

        (2)         If an exploration licence is surrendered then a pro rata reduction of the amount to be expended will apply in respect of each whole month from the date of surrender to the next anniversary date of the commencement of the term of the licence.

        (3)         If during a particular year of the term of an exploration licence or any period referred to in subregulation (1c), the holder of the licence is directly engaged part‑time or full‑time in mining on land the subject of the licence, an amount equivalent to the remuneration that the holder would be entitled to if engaged, under a contractual arrangement, in similar mining activity elsewhere in the district is to be deemed to have been expended during that year or period, as the case requires.

        (4)         If an exploration licence has retention status, the amount to be expended during the year of the term of the licence in which retention status is approved is to be calculated on a pro rata basis for each whole month from the last anniversary date of the commencement of the term until the end of the month in which the approval takes effect.

        (5)         Despite subregulations (1) and (1b), if an exploration licence has retention status, expenditure is not required under this regulation during any year of the term of the licence after the year in which retention status is approved.

        [Regulation 21 amended: Gazette 16 Nov 1990 p. 5728; 31 May 1991 p. 2697; 31 Jul 1992 p. 3776; 13 Oct 1995 p. 4814‑15; 11 Jun 1999 p. 2543; 18 Jun 1999 p. 2642‑3; 17 Jan 2003 p. 110; 3 Feb 2006 p. 581-3.]



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