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CLAUSE NOTES
MINERAL RESOURCES DEVELOPMENT AMENDMENT BILL
2013
PART 1 - Preliminary
Clause 1 Short title and citation.
This clause provides the short title to be used when citing the Act for any legal
purpose.
Clause 2 Commencement
The Act commences on receipt of Royal Assent.
Clause 3
The Principal Act is the Mineral Resources Development Act 1995.
Clause 4 Interpretation
Amends section 3 of the Principal Act by deleting certain definitions,
amending others to clarify the intent and inserting additional definitions for the
purpose of amendments made under this Bill. Additional definitions are
detailed below and amend the Act by:
inserting a definition for annual report guidelines that provides a reference
to a new section (204A) where the Minister may issue guidelines for the
submission of annual reports by companies undertaking exploratory
activities;
including coal seam gas as a defined Category 2 mineral to preclude any
potential conflict of rights over a coal resource by ensuring a licence or
lease holder has the rights to both the coal and any coal seam gas
contained within the coal within a tenement, instead of having the
possibility of coal being allocated to one licensee and coal seam gas
(which if any did exist would exist within the coal seam) to another party;
inserting a definition of coal seam gas for the purposes of the Act,
previously this commodity has had no specific definition within the Act;
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inserting a definition of a development plan to mean an approved plan of
development relating to a geothermal production licence that provides the
necessary details of a defined resource and production facilities required
for the production activities undertaken under a geothermal production
licence;
inserting a definition of environment to clarify requirements in the Act for
the provision of information relating to the environment and the potential
interaction with proposed activities or operations;
inserting a definition of field development plan to mean an approved plan
of field development in relation to a petroleum production licence that
provides the necessary details of a defined petroleum resource and
production facilities required for production activities undertaken under a
petroleum production licence;
inserting the following definitions that relate to geothermal activities:
o geothermal energy has been defined as thermal energy that was
contained within the earth, this definition is valid for the purposes
and intent of the Act as it allows for the calculation of royalty based
on the production of geothermal energy under a production licence,
measured when that energy reaches the surface of the earth;
o geothermal production licence is a new licence category to provide
security of title for the production of geothermal energy, providing
similar provisions to those within other Australian jurisdictions;
o geothermal reservoir provides for a definition of the area defined by
appropriate methods to allow for the transmission of geothermal
substances, and hence the ability to provide a source of extractable
geothermal energy;
o geothermal resource defines what and how a particular amount of
defined geothermal energy is to be reported in relation to a
geothermal production licence in accordance with accepted
industry standards;
inserting a definition of group prospecting licence that allows for a new
category of licence which will provide for groups to be allowed to prospect
under one `umbrella' licence in situations such as tourist group activities,
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as opposed to the current legislative regime where each individual
participant would be required to hold a prospecting licence;
inserting a definition of Mineral Exploration Code of Practice as it relates
to provisions within section 204 of the Act;
inserting a definition of mining plan that specifies the content of a mining
plan required to be provided prior to the Minister granting a mining lease
under section 78A;
inserting the following definitions that relate to the new licence categories
for the production of petroleum and geothermal resources and related
production activities:
o petroleum production licence means a new category of licence in
force under Part 3A that allows for the holder to have security of
title over the area of a defined petroleum resource and allows for
production activities to occur.
o Petroleum reservoir means an area defined through exploratory
activities that is capable of and is shown to contain a petroleum
resource that is able to be extracted.
o Petroleum resource means an amount of petroleum that has been
determined. The determination of the amount of petroleum is to be
undertaken in an approved manner, meaning one that is the
current industry standard. "Approved" means approved by the
Director.
o Plan of development means a document provided by the applicant
for a geothermal production licence that details the way in which
proposed production activities associated with a defined
geothermal resource will be undertaken. An appropriate plan of
development is required before the Minister may grant an
application for a production licence under section 67I of the Act.
o Plan of field development means a document provided by the
applicant for a petroleum production licence that details the way in
which proposed production activities associated with a defined
petroleum resource will be undertaken. An appropriate plan of field
development is required before the Minister may grant an
application for a production licence under section 67I of the Act.
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inserting the following definitions that relate to production activities for
geothermal and petroleum resources.
o Produced is defined so that it relates to geothermal energy in
section 3A.
o Production activities have been defined to relate to geothermal and
petroleum production activities as defined further in section 3B.
o Production licence means a new category of licence to allow the
holder of a production licence to produce petroleum or geothermal
resources.
Clause 5
Inserts two new sections in the Act after section 3 to define terms relating to
production activities for geothermal and petroleum resources.
Section 3A defines the meanings of obtaining minerals and produced as they
relate to geothermal energy within the Act. The definition of obtaining minerals
is clarified to include producing geothermal energy. This is required to ensure
that reference within the Act to obtaining minerals includes geothermal energy
even though strictly speaking geothermal energy is not a mineral, other than
for the purposes of the Act. By the definition of produced, geothermal energy
is defined to be produced when the energy reaches the surface of the earth.
This definition will give clarity to producers of geothermal energy and
administrators of the Act as to the point of production for the purposes of
royalty calculations.
Section 3B details the meanings defined for the purposes of the Act the terms
production and production activities in relation to activities undertaken under
petroleum (category 4 minerals) and geothermal (category 6 minerals)
production licences.
Clause 6 Application of Act
Amends section 5 of the Act by inserting special exploration licence to clarify
that this provision in the Act relating to exploration licences also applies to
special exploration licences.
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Clause 7 Ownership of minerals and substances
Amends section 6 of the Act by clarifying that geothermal substances and
petroleum are minerals owned by the Crown, confirming the current situation.
The Crown resumed ownership of petroleum in 1962, and geothermal
substances in 1986.
Clarification of the current situation regarding ownership of category 3
minerals (stone) has been inserted as subsection (6).
PART 2 - Exploration licences
Clause 8 Application for exploration licence
Amends section 11 of the Act by:
inserting the phrase "or category of minerals" after "mineral" in subsection
(2)(b) to clarify the intent of the Act that the licence applies to a category of
mineral not just a specific mineral.
inserting the phrase "on activities under the licence sought" in subsections
(2)(c)(i),(iv) and (v) to clarify the existing requirement that applications for
exploration licences are to include details of proposed activities that relate
specifically to the licence sought;
omitting subsection (4) and replacing it with a new subsection (5) to clarify
existing restrictions that relate to applications for licences over areas of
land subject to an Exploration Release Area, as notified by the Director of
Mines under section 161E. Currently the wording in the Act does not make
it clear that these restrictions only apply to the mineral category of the
previous licence;
omitting the original subsection (5) and replacing it with a new subsection
(4) to clarify that holders of a special exploration licence may submit an
application for an exploration licence provided that it is over an area of
land contained within the original special exploration licence, relates to the
same mineral category to which the special exploration licence related and
does not exceed the maximum size stipulated for exploration licences for
that particular category of mineral as stipulated in the Act under section
21(1).
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Clause 9 Priority of applications
Amends section 12 of the Act by substituting section 1A that clarifies the
procedures around the priority of applications for licences received as a result
of the notification of an exploration release area under section 161E.
Clause 10 Pending application
Amends section 13(2) of the Act by:
inserting the phrase "or withdrawn" in paragraph (a) to clarify that an
application is deemed to be lapsed for the purposes of the Act if that
application is withdrawn within a 12 month period;
inserting in paragraph (b)(ii) "in the opinion of the Director" to clarify that
the reason for fixing a later date on which the application will lapse is, in
the opinion of the Director, sufficient to do so. Applications will lapse after
12 months unless the Director fixes a later date.
Clause 11 Recommendation of application for exploration licence
Amends section 14 of the Act by omitting subsection (4), as this subsection
relates to the granting of an application by the Minister not the
recommendation of the Director, and these provisions have been inserted at
section 17A. This change will only improve the readability of the Act.
Clause 12 Alteration of application, &c., before notice published
Inserts a new section 15A that provides for an applicant to be permitted to
alter an application for an exploration licence, by notice to the Director prior to
the advertising of the application.
Clause 13 Amendment of application after objection
Rewords section 16 of the Act to clarify the intent of this section that provides
for alterations to applications to be made by an applicant as a result of an
objection to the Mining Tribunal.
Clause 14 Granting application for exploration licence
A minor change that amends section 17 of the Act by inserting "in respect of
which the licence is sought" after "land" to maintain consistency of language
between section 15 and section 17 of the Act.
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Clause 15 When application for licence may be granted or refused
Inserts a new section 17A to provide clear and unambiguous details relating
to when the Minister may decide to either grant or refuse an application for an
exploration licence. This section consists largely of the omitted part of section
14(4) (see clause 11 notes), with further detail added to provide clarity of the
intention of the Act, specifically relating to the requirement of an applicant to
demonstrate that they have sufficient technical and financial capabilities to
undertake their proposed exploration program. Provisions have been also
been included here to provide the Minister with the ability to take into
consideration the applicant past performance, in activities undertaken under
the Act, in determining an application.
Clause 16 Conditions of exploration licence
Amends section 18 of the Act by inserting subsection (2A) that provides the
Minister the clear authority to impose specific conditions upon a licence that
include conditions relating to a specific minimum expenditure that is to be
spent on the exploration activities, and for the completion of accepted work
programs in relation to the licence. Previously the Act was relatively vague in
terms of the type of conditions that could be imposed on the licence; this
amendment addresses this previous shortcoming.
Clause 17 Restriction on exploration in relation to private land
Substitutes section 19 of the Act to clarify the requirement that a holder of a
licence must gain a landowners consent to explore within 100 metres of
certain areas including buildings and water bodies, to maintain consistency
with the requirements placed on other licence holders. There have been no
changes made that affect the existing intended meaning of the relevant
provisions.
Division 2 Exploration licences
Clause 18 Exploration licence
Amends section 20 of the Act by revising the English expression and
grammar of the existing wording to clarify the intent of this section. There
have been no changes made that affect the existing meaning of the relevant
provisions.
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Clause 19 Area of land comprised in exploration licence
Amends section 21 of the Act by providing clarification of the maximum size of
licence allowed for each category of mineral in subsection (1). The maximum
size is set to provide a sufficient area for the exploration of specific minerals,
whilst preventing one licensee from holding excessively large areas of land
that can result in inadequate exploration coverage and would prevent other
explorers from accessing the land.
Amends subsection (2) by clarifying the wording used that provides the
Minister with the authority to grant a licence that may be different in shape
and or area to that originally sought, this provides options for the Minister in
granting a licence over a part of the application area when it is not desirable
for the entire area to be a part of a licence.
Amends subsection (3) by clarifying the wording used so that it is consistent
with the style of wording used in subsection (2). The existing provisions that a
licence area cannot include an area that is already a licence for the same
category of mineral have not been changed. Multiple licences for different
mineral categories can be coexistent over the same area of land.
Clause 20 Exploration licence for small areas
Amends section 22 of the Act to clarify that licences for small areas are
granted under section 17 and all provisions relating to exploration licences
also apply to licences for small areas. Currently the wording in this section of
the Act does not make this clear.
Clause 21 Authority of exploration licence
Amends section 23 of the Act by substituting and inserting words to clarify the
intent of this section, that allows the licensee to provide the authority to
nominated persons to undertake activities on the licence on behalf of the
licensee and that the licence gives the licensee authority to explore provided
that the work is undertaken in accordance with the conditions of the licence.
This provides clarity to the original intent of the Act that a licence holder can
engage third parties to undertake authorised works within a mineral tenement.
There are no material changes to the existing provisions of the Act, including
penalties made by this amendment.
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Clause 22 Term of exploration licence
Amends section 24 of the Act to clarify the existing provisions of the Act as
they relate to the term of exploration licences. All categories of mineral have a
five year term of licence, except category 4 (petroleum) which has a term of
licence determined by the Minister.
Clause 23 Extension of term of licence
Amends section 25 of the Act by varying some words used to clarify the intent
of the Act regarding the process required relating to the making of an
application for an extension of term of a licence and the grant or refusal of the
application.
Clause 24 Minimum expenditure
Substitutes a new section 26 to provide clarity regarding the Ministers ability
to set a minimum expenditure as a condition on a licence, as it relates to the
exploration set out in the approved work program.
Clause 25 Annual report
Amends section 28 of the Act by clarifying the requirements of licence holders
to provide a report, an annual report, of activities undertaken on a licence for
each 12 month period of that licence. It is important that the Act provides the
necessary mechanisms to ensure that licence holders supply the Director a
detailed report of expenditure and activities undertaken to assess compliance
with the conditions of the licence and to contribute to the overall knowledge of
the geology of Tasmania via the submission of technical details and results of
exploratory activities in required formats.
Clause 26 Returns
Amends the Act by inserting a new section 28A that provides details on the
requirements for licence holders to supply the Director a quarterly return
detailing activities undertaken on that licence for each quarter and an annual
return for the 12 month period of the licence. Returns are an important
component in the ongoing assessment of a licensee's activities and
compliance with the conditions of the licence. This amendment clarifies the
reporting requirements of licensees specifying the form and content of these
records, and provides the power for audited returns to be requested to
support claimed expenditure in relation to exploration activities. Currently the
Act is not specific in the reporting requirements regarding returns.
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Clause 27 Exploration without a licence
Amends the Act by rewording section 30 to clarify the original intent of the Act,
that a person must hold a relevant mineral tenement to be permitted to
explore an area of land for minerals or a category of mineral.
Clause 28 Application for transfer of exploration licence
Amends section 32 of the Act to clarify the existing requirements relating to
the transfer of ownership of an exploration licence and specifically the
requirements as they relate to any caveat lodged on that licence.
Clause 29 Approval of transfer of exploration licence
Amends section 33 of the Act to provide clarity regarding the ability of the
Minister to place conditions on the transfer of a licence should there be a
need to do so prior to approving the transfer.
Clause 30 Surrender of exploration licence
Amends section 35 of the Act to provide the Director with the ability to
approve an application to surrender a licence with or without conditions and
that the surrender will not come into effect until such time as the conditions
are met. There is also additional clarity given to the date on which the
surrender takes effect.
Clause 31 Term of consolidated exploration licence
Amends section 37 of the Act by clarifying the language relating to the term of
a consolidated exploration licence, which is to be a period of five years from
the date on which the application for the earliest licence was granted.
Part 2A Special exploration licences
Clause 32 to Clause 34 - Special Exploration Licences
Amends Part 2 of the Act by changing special exploration licence headings
from being a division within Part 2 - exploration licences, and creating a new
Part 2A specifically for special exploration licences. A new Division 1
Applications has also been inserted. The provision of a new Part for special
exploration licences will deal with identified discrepancies and inconsistencies
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identified in the administration of the Act regarding exploration licences and
special exploration licences.
Clause 35 Application for special exploration licence
Amends section 38 of the Act by inserting a new subsection to clarify that a
person cannot apply for an area of land to which a notice issued under section
161E relates (ie the exploration release area provisions). In addition
amendments clarify that a person may not apply for a subsequent special
exploration licence for the same category of mineral that was previously held
by the applicant under a special exploration licence. This reiterates the
`special' nature of special exploration licences as opposed to exploration
licences, in that they are designed to allow for exploration for unusual
commodities or to be undertaken via novel exploration methodologies.
Clause 36 Priority and pending applications
Amends the Act by the insertion of two new sections (38A and 38B); section
38A provides details regarding the process to be followed in determining the
priority of applications, should multiple applications for a special exploration
licence for the same category of mineral and same area of land be received at
the same time.
Section 38B describes and provides detail regarding an application, that it is a
pending application until such time as it is approved, refused, lapses or is
withdrawn.
Clause 37 and Clause 38
Amends section 39 and section 40 of the Act by clarifying some of the
expression and grammar used in these sections. There has been no change
to the current meaning of these sections as a result of these minor changes.
Clause 39 Alteration of application
Amends the Act by inserting sections 40A and 40B in Division 1.
Section 40A allows for an applicant to alter their application by notifying the
Director of their intent to do so, before the application has been advertised.
Section 40B provides for alterations to applications to be made by an
applicant as a result of an objection to the Mining Tribunal. These provisions
have been inserted to maintain consistency in the workings of the Act as it
relates to licence applications.
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Clause 40 Granting application for special exploration licence
Amends section 41 of the Act by clarifying some of the expression and
grammar used in this section. There has been no change to the current
meaning of this section as a result of these minor changes.
Clause 41 When Minister may grant application
Amends the Act by inserting a section 41A, this new section provides details
of the information required by the Minister prior to making decisions regarding
the granting or refusal of an application for a special exploration licence. The
changes specifically relate to the requirement of an applicant to demonstrate
that they have sufficient technical and financial capabilities to undertake their
proposed exploration program. Provisions have been also been included here
to provide the Minister with the ability to take into consideration the applicant
past performance, in activities undertaken under the Act, in determining an
application. This provision has been inserted to maintain consistency in the
workings of the Act as it relates to licence applications.
Clause 42 Conditions of special exploration licence
Amends section 42 of the Act by providing the authority of the Minister to
impose conditions on the licence including, but not limited to, a minimum
expenditure requirement and a condition requiring the completion of a work
program in relation to the licence.
Some minor changes have also been effected to improve the readability of
this section and to clarify the intent of the Act.
Clause 43 Restriction on exploration on private land
Amends the Act by inserting section 42A, this new section clarifies the
requirement that a holder of a licence must gain a landowners consent to
explore within 100 metres of certain areas including buildings and water
bodies, to maintain consistency with the requirements placed on other licence
holders. There have been no changes made that affect the existing intended
meaning of the relevant provisions.
Clause 44 Division 2 Special exploration licences
Part 2A of the Act is amended by inserting a new heading Division 2
Special exploration licences
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Clause 45 Special exploration licence
Amends the Act by inserting a new section 42B that provides the required
details for the issuing of a special exploration licence, its form, content and
that the licensee is required to pay rent for the area to which the licence
relates. This section maintains consistency throughout the Act in relation to
licences.
Clause 46 Authority of special exploration licence
This amendment substitutes and inserts sections that relate to the authority of
a special exploration licence, the duties under a special exploration licence
and the reporting and annual returns required under a special exploration
licence to maintain consistency throughout the Act for all licences.
Specifically these amendments aim to amend section 43 of the Act by
substituting and inserting words to clarify the intent of this section, that allows
the licensee to provide the authority to nominated persons to undertake
activities on the licence on behalf of the licensee and that the licence gives
the licensee authority to explore provided that the work is undertaken in
accordance with the conditions of the licence. This provides clarity to the
original intent of the Act that a licence holder can engage third parties to
undertake authorised works within a mineral tenement.
Amends the Act by inserting three new section, 43A, 43B and 43C that detail
the duties under special exploration licence, including the requirements of the
licensee in relation to the special exploration licence and the way in which
work is to be carried out, and the reporting requirements that the licensee is to
provide to the Director either in the required annual report format, or in
quarterly and annual returns. This amendment provides consistency of
reporting requirements throughout the Act for all licence types.
Clause 47 Term of special exploration licence
Amends section 44 of the Act to clarify the existing situation, that a special
exploration licence term is 5 years, and that the Minister may extend the term
provided that the total term of the licence does not exceed 10 years.
Clause 48 Extension of term of licence
Amends the Act by inserting section 44A. This new section details the
requirements for applying for an extension of term of a special exploration
licence and gives the Minister the authority to grant or refuse the application
13
and the reasons why the Minister can do so. There are rights of appeal
provided to the applicant should the Minister decide to refuse the application
for an extension of term. These provisions maintain consistency with other
licence types in relation to extensions of term.
Clause 49 Area of land comprised in special exploration licence
Amends section 45 of the Act to clarify the original intent of the Act that a
special exploration licence may exceed the maximum size allowable for
exploration licences for any mineral category, and that they cannot coexist
with other licences or leases for the same mineral or category of mineral as
the special exploration licence. Provision has also been made in section 45
(1B) to allow a licence to be a different area or shape to the one originally
sought, maintaining consistency in the Act in relation to land comprised in a
licence.
Clause 50 Exploration without licence
Amends the Act by inserting a new section 45A providing consistency within
the Act with other licences, relating to the requirement that a person must hold
a relevant mineral tenement, or is authorised by the holder of the tenement to
do so on their behalf, to be permitted to explore an area of land for minerals or
a category of mineral.
Clause 51 Division 3 Dealings with special exploration licences
Amends the Act by inserting a new heading for dealings with special
exploration licences.
Clause 52
Amends the Act by inserting 3 new sections: 45B, 45C and 45D to improve
consistency in the workings of the Act relating to (45B) - the ability of a
licensee to vary the size of the licence or the Minister to vary the size or
conditions of the licence; (45C) the ability of a licensee to apply to the
Minister to transfer the ownership of the tenement; and (45D) the rights of
the Minister to approve or refuse an application associated with the transfer of
a licence.
Clause 53 Revocation of special exploration licence
Amends section 46 Act via the provision of minor changes to clarify the
language used in this section to maintain consistency with the wording used
14
throughout the Act. The changes to this section do not alter the meaning of
the existing provision.
Clause 54 Surrender of special exploration licence
Amends the Act by inserting a new section 46A that is consistent with other
related provisions in the Act and provides the details and requirements for a
licensee to be able to surrender a special exploration licence, or part of that
licence, by applying to the Director of Mines. The Director can approve or
refuse the application for surrender.
PART 3 Retention Licences
Clause 55 Application for retention licence
Amends section 47 of the Act by clarifying the requirements for persons to
apply for a retention licence. Only persons who hold an exploration licence or
mining lease for the category of mineral sought in a retention licence may
apply for that licence. The applicant must be able to show that there are
sufficient quantities of mineral available to mine and that there are justifiable
reasons for them not to immediately commence mining operations. It is not
intended for holders of a production licence nor special exploration licence to
be able to apply for a retention licence, these categories of licence are
intended to cover very large areas of land which is not consistent with the
intent of a retention licence to preserve small sub economic mineral deposits
for the future benefit of the state and the licence holder.
Clause 56 Holder of exploration licence or lease may permit other person
to apply for retention licence
Amend the Act by substituting a new section 48 to clarify the intent of the Act
to permit a person other than the holder of a licence or lease to apply for a
retention licence either alone or in conjunction with that licensee or lessee.
Clause 57 Pending application
Amends the Act by inserting section 49A. This new section improves the
consistency in the workings of the Act relating to the status of a licence
between the application and granting of a licence. A licence is termed pending
until such time as either the Minister decides to grant or refuse the application
15
or the application is withdrawn or after the passage of a period of time, the
application lapses.
Clause 58 Alteration of application after objection
Amends the Act by rewording section 52 to maintain consistency of language
in the application of the Act as it relates to the alteration of a retention licence
application should there be an objection lodged and upheld by the Mining
Tribunal in relation to that application.
Clause 59 Granting application for retention licence
Amends section 53 of the Act to clarify the intent of this section. The changes
do not affect the meaning of the existing provisions.
Clause 60 Restriction on exploration on private land
Amends section 54 of the Act to clarify the requirement that a holder of a
licence must gain a landowners consent to explore within 100 metres of
certain areas including buildings and water bodies, to maintain consistency
with the requirements placed on other licence holders. There have been no
changes made that affect the existing intended meaning of the relevant
provisions.
Clause 61 Conditions of retention licence
Amends section 55 of the Act by clarifying the ability of the Minister to vary the
conditions of a licence, including adding, rescinding, substituting or amending
any conditions on a licence.
Clause 62 Retention licence
Amends the Act by clarifying section 56 relating to the issue of a licence by
the Minister, and to maintain consistency in language used throughout the
Act.
Clause 63 Area of land comprised in retention licence
Amends the Act by substituting a new section 57 to clarify the allowable size
for a retention licence in relation to each of the available mineral category,
with sizes available determined based on the probable maximum
requirements for tenure over a resource for each mineral category. Further
clarification is given regarding the original intent of the Act that if a retention
16
licence is issued, then any other licence for that mineral or category of mineral
ceases to exist over the same area of land.
Clause 64 Authority of retention licence
Amends section 58 of the Act by substituting and inserting words to clarify the
intent of this section, that allows the licensee to provide the authority to
nominated persons to undertake activities on the licence on behalf of the
licensee and that the licence gives the licensee authority to explore provided
that the work is undertaken in accordance with the conditions of the licence.
This provides clarity to the original intent of the Act that a licence holder can
engage third parties to undertake authorised works within a mineral tenement.
There are no material changes to the existing provisions of the Act, including
penalties made by this amendment.
Clause 65 Term of retention licence
Amends section 59 of the Act by inserting words to clarify that a retention
licence can only be in force for a period of up to 5 years, as determined by the
Minister. The licence can be extended for periods not exceeding 5 years.
Clause 66 Annual reports and Returns
Amends the Act by inserting sections 60A and 60AB. These new sections
provide clarity and consistency throughout the Act regarding the obligations of
the licensee to submit annual reports and returns that are to include the
information as outlined in these sections and or as specified by the Director.
Clause 67 Exploration without licence
Amends section 60C of the Act to clarify that any person must be the holder of
a mineral tenement, or be authorised by the holder of the licence, to access
an area of land for the purposes of exploring for a particular mineral category.
This amendment maintains consistency relating to exploration without a
licence throughout the Act.
Clause 68 Variation of retention licence
Amends section 61 of the Act by inserting the words "or a category of mineral"
after "mineral" to clarify that under the Act the licence is relevant to the
category of mineral, not just the specific target mineral.
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Clause 69 Application for transfer of retention licence
Amends section 62 the Act to maintain consistency throughout the Act by
clarifying the provisions that relate to caveats lodged on a licence that is
subject to an application for transfer.
Clause 70 Approval of transfer of retention licence
Amends section 63 of the Act by clarifying existing wording of this section that
provides the Minister with the authority to apply conditions on a licence
transfer, and maintains consistency throughout the Act in relation to licence
transfers.
Clause 71 Extension of term of retention licence
Amends section 64 of the Act by inserting a new paragraph to clarify the
expiry date of a licence in the event of an application for extension of term
being refused. This amendment does not provide a significant change to the
current provisions within the Act.
Clause 72 Term of extended licence
Amends the Act by providing a minor wording change in section 65 clarifying
the licence extension provisions.
Clause 73 Surrender of retention licence
Amends section 67 of the Act to provide the Director with the ability to
approve an application to surrender a licence with or without conditions and
that the surrender will not come into effect until such time as the conditions
are met. There is also additional clarity given to the date on which the
surrender takes effect. These provisions provide consistency throughout the
Act relating to licence surrender.
Part 3A Production licences
Clause 74
Amends the Act by inserting a new Part 3A that allows for the provision of title
should there be commercially extractable heat resources (geothermal) or
petroleum resources discovered in Tasmania. Due to the nature of these
types of resources a production licence is needed that provides security of
18
title over the entire delineated resource, which may be large in areal extent,
whilst the actual requirements for surface infrastructure may be very small.
The new production licence provisions will allow for exploration and mining
tenements for other mineral categories to coexist within the same area as the
production licence, where they can do so without detriment to the proposed
production facilities or defined resource. The provision to allow for the
coexistence of multiple licences over a production licence is a major point of
difference between a production licence and a mining lease, where no other
activities are permitted within the area of a lease other than operations directly
associated with the mining operation.
New provisions for production licences have been drafted to maintain
consistency throughout the Act to the existing provisions that relate to
dealings with other licences and leases as far as practicable, and are
presented as three new divisions in the Bill. The new divisions are:
Division 1 Applications: including details of requirements for the application
and granting of a Production licence in sections 67A 67K. These provisions
maintain consistency as far as practicable with applicable sections that deal
with the application process for other types of mineral tenement.
Division 2 Production Licences: including details of requirements for the
granting of an application for a mineral or category of mineral, issuing and
extension of term of a production licence, and also provides details of the
duties of a licensee in regard to that production licence including reporting
duties (annual reports and returns) in sections 67L 67U.
Section 67M provides the ability for the Minister to set the size of the required
production licence to that which would be sufficient to allow the licence
applicant to undertake proposed production activities, and to cover the extent
of the defined resource thus ensuring security of title over that resource.
A requirement for licensees to provide a statutory declaration has been
included for annual reports and returns within sections 67R (annual reports)
and 67S (returns) to ensure that the content of these reports are accurate.
Division 3 Dealings with licences details the requirements under a
production licence for the transfer, revocation and surrender of a production
licence in sections 67V 67Z. These provisions have been created to
maintain consistency with similar provisions for other licence types.
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Part 4 Mining leases
Clause 75 to Clause 78 Applications for a mining lease
Amendments made to the Act by clauses 75 to 78 provide minor wording
changes that permit more clarity and consistency in sections 70, 71, 72 and
74 of the Act that relate to applications for a mining lease. No significant
change to the meaning of the relevant provisions has been made by these
amendments.
Clause 79 Alteration of application, &c., before notice given
Amends the Act by inserting section 74A. This new section provides the ability
for an applicant for a mining lease to alter that application via a notice
provided to the Director. This section provides consistency throughout the Act
relating to the ability of any mineral tenement applicant to change the nature
of the application prior to the required advertisement of the application.
Clause 80 to Clause 82 Recommendations of applications for a mining lease
These clauses amend the Act by substituting or omitting words in sections 75,
77 and 78, for the purposes of providing consistency of English expression in
the Act. No significant change to the meaning of the relevant provisions has
been made by these amendments.
Clause 83 When Minister may grant application
Amends the Act by inserting a new section 78A that provides clarity regarding
the Ministers ability to grant or refuse a mining lease application. This section
previously was located within section 75 of the Act that specifically deals with
the recommendations made by the Director regarding applications, as such it
has been moved to 78A where it more logically belongs. This section further
clarifies the Ministers abilities in relation to the authority to grant or refuse an
application, including taking the applicants past performance into account,
and considering the net benefit to the State when determining an application
for a lease. The provisions relating to the Minister being satisfied that a
compensation agreement exists, between the lessee and the owner of the
land, has been clarified to include that a compensation agreement exists if the
Mining Tribunal has determined compensation under section 150 of the Act.
Clause 84 Mining Lease over private land
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Amends section 79 of the Act to clarify the requirement that a holder of a
lease must gain a landowners consent to undertake mining operations within
100 metres of certain areas including buildings and water bodies, to maintain
consistency with the requirements placed on other tenement holders. There
have been no changes made that affect the existing intended meaning of the
relevant provisions.
Clause 85 Conditions of a Mining Lease
Amends the Act through minor amendments to section 80. These changes
provide consistency of language and expression throughout the Act and have
not altered the intended meaning of any specific section.
Clause 86 to Clause 87 Mining leases
Amends the Act through minor amendments to sections 81 and 83. These
changes provide consistency of language and expression throughout the Act
and have not altered the intended meaning of any specific section.
Clause 88 Authority of Mining Lease
Amends section 84 of the Act by clarifying the wording used in this section to
maintain consistency throughout the Act, and to ensure it accurately reflects
the intention of the section to enable authorised persons to conduct
operations on behalf of the lessee and that works are to be conducted in
accordance with prescribed lease conditions. There are no material changes
to the existing provisions of the Act, including penalties made by this
amendment.
Clause 89 Returns and Annual Reports
Amends the Act by repealing section 87 and substituting section 87 and 87A
detailing requirements of lessees to provide the Director of Mines, in the
required format, a quarterly return and also an annual report that provide
details on operations under the lease. The reports are to be accompanied by
a statutory declaration as to the accuracy of the statements made. These
reporting obligations are important so that details of mineral production can be
collected for the purposes of royalty calculation, and also to provide the
Director of Mines with geological data gathered during the mining operations,
and also with any other matter in relation to the lease that is required by the
Director.
Clause 90 to Clause 92 Subleases
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Amend the Act by insertion or omission within sections 89, 90 and 91 to
provide consistency of language and expression throughout the Act and have
not altered the intended meaning of any specific section.
Clause 93 to Clause 95 Transfer of leases
Amends sections 93, 94 and 95 of the Act by clarifying existing wording of
these sections that provides the Minister with the authority to apply conditions
on a lease transfer, and maintains consistency throughout the Act in relation
to transfer of titles.
Clause 96 Surrender of mining lease
Amends section 100 of the Act to provide the Director with the ability to
approve an application to surrender a lease with or without conditions and that
the surrender will not come into effect until such time as the conditions are
met. There is also additional clarity given to the date on which the surrender
takes effect. These provisions provide consistency throughout the Act relating
to surrender of titles.
Clause 97 Rent.
Amends section 101 of the Act by insertion of words to provide consistency of
language and expression throughout the Act and has not altered the intended
meaning of any this section.
Clause 98 Royalty
Amends section 102 of the Act by providing for the payment of royalties for
the production of geothermal energy by inserting reference to geothermal
production and geothermal energy where applicable. It is necessary to refer
directly to geothermal energy within the royalty section of the Act as royalties
for geothermal are to be calculated at the time of production of the energy,
that being when the energy reaches the surface of the earth (i.e. at the well
head) not when it is sold as is the case for other mineral categories. This is a
consistent approach with other Australian jurisdictions and is a more practical
solution to the calculation of royalty for the production of heat energy.
Clause 99 Agreement to deferral of royalty, Effect of, and revocation of,
agreement to defer royalty, &c.
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Amends the Act by inserting section 102AA and section 102AB. Section
102AA relates to the deferral of royalties, where a producer of a mineral who
wishes to seek relief from the Crown for the payment of royalties must apply
to the Treasurer for the deferral of this obligation. This section has been
drafted in consultation with the Department of Treasury to ensure that any
decisions made regarding royalty deferral include the Treasurer. The
Treasurer has the authority to impose obligations on the applicant for deferral,
regarding the repayment of the deferred royalty.
The provisions for the deferral of royalty allow for proponents to defer their
obligations to the Crown in times of economic hardship where the royalty
payment may impact upon their ability to continue to produce in the short
term.
Section 102AB provides the authority for the Treasurer to revoke an
agreement on the deferral of royalties under section 102AA, if the person to
whom the deferral applies fails to fulfil a requirement of that deferral provision.
Clause 100 Recovery and collection of royalty
Amends section 103 of the Act to provide consistency of language and
expression throughout the Act and has not altered the intended meaning of
this section.
Clause 101 Lease for storage and other purposes
Amends section 106 of the Act by expanding provisions related to a lease to
include the ability to grant a lease for other purposes including mine access,
rehabilitation and other activities associated with a mining lease. The
provision of these amendments will allow a lessee to secure a lease that
provides unfettered access to an existing operation, via a defined route from a
mining lease to the nearest public road.
Part 5 Prospecting licences, Group Prospecting Licences and
Fossicking Areas
Clause 102 to Clause 110 Group prospecting licence
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Amends sections 107, 108, 110, 111, 112, 113 and 115 to provide for a group
prospecting licence. Prior to these amendments if a tour group wished to
undertake prospecting activities as a part of that tour, each person would be
required to hold a prospecting licence, which was impractical. Current
amendments provide the ability for a group prospecting licence to be issued,
and that the holder of a group prosecting licence is to supervise the activities
of the members of the prospecting group. The amendments also allow for a
child to be an active participant in prospecting activities if accompanied by
and under the supervision of the licence holder.
Clause 111 Fossicking areas
Amends section 116 of the Act by minor changes to the grammar and
expression used in the existing provisions, and by inserting sub sections that
clarify the Ministers ability to declare a fossicking area, and the authorisation
of persons to undertake fossicking within a declared area.
Part 6 Drill Core and Cutting
Clause 112 to Clause 114
Amends the Act by clarifying the current provisions that relate to drill core in
sections 117, 119 and 121. Mineral tenement holders are to provide
information and samples relating to drill core and cuttings to the Director in a
prescribed manner. Amendments include the provision for the Director to
nominate an approved container or packaging for the delivery of the samples,
this is an important amendment that will provide the consistency of sample
delivery that is required at the MRT core storage facility.
Part 7 Claims and Appeals
Clause 115 Jurisdiction of Mining Tribunal
Amends section 128 of the Act by including the provision for the holder of a
group prospecting licence, as well as holders of prospecting licences, to
appeal against the holder of an exploration licence who is refusing access for
prospecting within that exploration licence area, within the jurisdiction of the
Mining Tribunal to maintain consistency in the Act with matters concerning
prospecting activities. A new paragraph (ua) has also been inserted that
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provides for the inclusion of royalty disputes to be within the jurisdiction of the
Mining Tribunal.
Part 8 Compensation
Clause 116 Compensation for revocation due to public purpose
Amends section 149 of the Act to include provision for the revocation of a
production licence for public purpose to maintain consistency with similar
dealings attributed to leases.
Clause 117 Determination of compensation
Amends section 150 of the Act by clarifying that the Mining Tribunal has the
authority to determine compensation payable as a rate or as an amount to be
paid to a person. If no compensation agreement had been reached between
the owner or occupier of the land over which a mineral tenement is active, and
a tenement holder, and where activities or operations associated with the
licence or lease have resulted in a compensable loss to that person the
Tribunal can determine the compensation payable.
Part 10 Miscellaneous
Division 1 Matters relating to licences, leases and mining.
Clause 118
Amends the Act by inserting 3 new sections, 161E, 161F, and 161G, before
section 162.
Section 161E Director to issue notice where licence ceases to apply to land
has been inserted to clarify the two month rule that applies to the inability of a
person to apply for a mineral tenement for a specific category of mineral over
an area of land that has been the subject of a mineral tenement for the same
mineral category within the previous two months. The Act currently does not
clearly articulate that the intent of the two month rule was to apply only to
applications for a mineral category that was the same as that for which the
previously held licence related.
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Section 161F Authorisation to conduct geological investigation has been
inserted to provide the authority to the Director to allow an applicant for a
lease, permit or licence under the Crown Lands Act 1976 or the Forestry Act
1920 to undertake geological investigations, that would normally require the
authority of a mineral tenement, to demonstrate that the proposed land use
(eg a wind farm) will not adversely affect the State's ability to realise any
potential mineral wealth from that area of land. In essence it will allow
proponents of developments, within areas of State owned land, to test the
ground beneath their proposed infrastructure or development to demonstrate
that land does not contain any potentially commercially extractable mineral
deposit and thus the development will not prevent the State from realising the
benefits of such a deposit.
Section 161 G Works approval under authorisation to conduct geological
investigation has been inserted to provide the authority to the Director to
approve works for persons authorised under Section 161F to be conducted.
Clause 119
Amends the Act by inserting 2 new sections, 164A, and 164B, after section
164 in Division 1.
Section 164A provides the Minister with the authority to declare an area to be
of geological significance and may thereby prevent any mineral exploration or
mining activities from occurring within that area of land that may adversely
affect the significant area. There are no alterations to the land tenure or
management by any respective land management agency by the declaration
of an area of geological significance.
Section 164B provides the Director with the authority to seek information
relating to the sale of materials won as a result of construction activities.
Currently a person engaged in an authorised construction activity may sell
construction materials extracted from a development site without a mining
lease. This section will provide the Director the ability to be informed of the
details of the construction materials being placed on the market.
Clause 120 to Clause 121 Lodgement of caveats
26
Amend sections 183 and 184 of the Act by omitting or substituting words and
phrases for the purposes of clarifying the intent of the Act and maintaining a
consistency in English grammar and expression. The provision that required a
caveat to provide an address within Tasmania for the service of notices and
proceedings has been removed to better reflect the more universal nature of
today's minerals industry. There are no other changes to the meaning of the
existing provisions as a result of these clarifications.
Clause 122 Duration of caveat
Amends section 185 of the Act by substituting a new paragraph (c) that
clarifies the effect and timeframes of a caveat on a licence that is subject to
the application for a transfer.
Clause 123 Records kept by licensee
Amends section 187 of the Act by including provisions for the new production
licence categories provided for in these amendments. Subsections (4) and (5)
have been inserted to clarify the official records that are required to be kept by
the licensee of a geothermal or petroleum production licence. These required
details are equivalent to those that are currently required to be kept by
lessees. The content of these records are required to be kept and also
provided to the Director via the prescribed production licence annual report.
Clause 124 Records kept by lessee
Amends section 188 of the Act by omitting "Australian Institute of Mining and
Metallurgy" and substituting "Australian Joint Ore Reserves Committee or
another body that the Minister has nominated by notice in writing to the
lessee" that provides mention of the updated methodology accepted by
industry for use in the calculation and publication of ore reserves and
resources. This amendment also provides for the Minister to nominate an
alternative publication that in the future may be a more acceptable
methodology, without the need to further alter the Act.
Clause 125 Accurate plans of mines to be made and kept
Amends the Act by inserting section 188A that details the responsibility of a
lessee to prepare and maintain accurate mine plans. This provision is vital to
ensure that accurate plans are made and maintained of existing mines for
reasons including the monitoring of progress, resource evaluation, future
exploration and mining activities and for mine safety reasons.
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Clause 126 Copies of records and plans
Amends section 189 of the Act by substituting words used within this section
to provide clarity of meaning and maintain a consistency of language and
expression used throughout the Act. There is no change to the meaning of the
existing provision as a result of these minor changes.
Clause 127 Confidentiality of records
Amends section 190 of the Act by substituting words used within this section
to provide clarity of meaning and maintain a consistency of language and
expression used throughout the Act.
A new subsection 3A has been inserted to provide the Director of Mines with
the authority to provide the Director, within the meaning of the Environmental
Management and Pollution Control Act 1994, and or relevant Commonwealth
officers with information relating to the amount of minerals obtained under a
lease for the purposes of allowing those nominated persons to exercise their
statutory functions. This includes the use of such records by the Director of
Environmental Control to determine and audit the appropriate level of control
required for an operation, and will allow for the provision of geological
information into Commonwealth data modelling exercises, resulting in a
benefit to the Australian community.
Clause 128 Publication of records, returns and information
Amends section 191 of the Act by substituting words used within this section
to provide clarity of meaning and maintain a consistency of language and
expression used throughout the Act. There is no change to the meaning of the
existing provision as a result of these changes.
Clause 129 Use of security deposit
Amends section 196 of the Act by inserting paragraphs (1) (ab) and (1) (ac)
that provide the Director with the authority to use any part of a security deposit
held in relation to a lease or licence to cover costs incurred by the Crown
associated with the costs of depositing drill core, or failure to render safe a
hazard that is a result of the mining or exploration activities.
Clause 130 Director may require purchaser to provide information
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Amends the Act by inserting section 199A. This new section provides the
Director with the authority to request information, from the purchaser of a
product from the holder of a lease or licence, pertaining to that purchase
including the nature, value, quantity and source of that product. This provides
the Director with the ability to undertake a more detailed and robust auditing
process for the purposes of royalty calculations.
Clause 131 Annual report guidelines
Amends the Act by inserting a new section 204A that provides the Minister
with the ability to issue guidelines for the preparation of annual reports. This
allows for the provision of geological information, gathered during the tenure
of a mineral tenement, to the Director in a standardised format thereby
reducing the potential for loss of important geological information.
Clause 132 Repeal of Act
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