Diamond (Argyle Diamond Mines Joint Venture) Agreement Act 1981

The Joint Venturers and the Company. The principal beneficiaries and obligors under the Agreement. The Act gives statutory force to their rights and obligations.

The State of Western Australia. The State is a party to the Agreement and the Act imposes obligations on the State in relation to the joint venture's rights, royalty arrangements, and infrastructure support.

Security officers employed by the Owners. Authorised to exercise Part IV powers within designated areas, including directing persons, searching vehicles and people, and detaining persons suspected of diamond theft.

Western Australia Police. Part IV preserves and supplements police powers in and around designated areas. Section 23 confirms that the Part IV powers of security officers are in addition to, not instead of, the powers of police officers.

Any person entering or leaving a designated area. Subject to the entry and exit controls in sections 17-21, including requirements to pass through controlled access points and submit to search.

Third parties with competing mineral rights. Part III extinguishes or protects rights to the minerals covered by the Agreement. Sections 8 and 9 declare and protect the entitlements of the Company and extinguish competing rights of others.

Native title holders. The Argyle mine site is located in the East Kimberley, territory subject to various native title claims. The Brown (Ngarla People) v WA [2012] FCAFC 154, Ward v WA and related cases concern native title in regions overlapping with the mine's operational area. The Act predates the native title regime; its interaction with native title rights has been a subject of broader native title jurisprudence.

Joint Venturers' obligations under the Agreement. The Agreement (Schedule 2) and supplementary agreements impose comprehensive obligations on the joint venturers regarding: royalties payable to the State, environmental management, local content, community obligations, infrastructure commitments, and financial reporting.

Security regime obligations (Part IV). Persons within or seeking to enter a designated area must comply with the entry and exit controls at controlled access points. Security officers may require persons to identify themselves, submit to search, and produce any diamonds they are carrying.

By-law compliance. By-laws made under section 4 have the force of law from their Gazette publication. Contravention of a by-law constitutes an offence with penalties up to $100.

Controlled access point requirements (section 17). Persons must enter and leave designated areas only through designated controlled access points. Security officers may require compliance. Failure to do so is an offence.

Governor's designation powers (section 15). The Governor may by Order in Council declare land or premises to be a designated area. Orders must define or describe the boundaries and take effect on publication or a specified later date.

Security officer powers within designated areas (sections 17-21):

• Section 17: require persons to use controlled access points, search persons at entry/exit, take property found on persons.
• Section 18: direct persons in designated areas including requiring them to leave.
• Section 19: stop and search people and vehicles in or near designated areas.
• Section 20: search vehicles in designated areas.
• Section 21: detain and search persons in designated areas, including strip searches in specified circumstances.

Police powers preserved and extended (section 23). The powers of police officers under section 21 are additional to any other powers they have under other Acts.

Restitution orders (section 25). Courts may order restitution of diamonds upon conviction for certain Part IV offences.

Governor's by-law power (section 4). The Governor may make by-laws on the joint venturers' recommendation for Agreement purposes. By-laws are gazetted and have the force of law.

Unauthorised possession of diamonds (section 16). A person within a designated area who, without lawful authority, has an uncut diamond on their person or in their possession is guilty of an offence. Maximum penalty: $10,000 fine or 2 years imprisonment. The proof of lawful authority or excuse lies on the defendant.

Entry and exit control offences. Contravention of section 17 (failure to use controlled access points, failing to comply with searches) constitutes offences under the Part IV regime.

Obstruction offences. Obstructing security officers exercising Part IV powers is an offence.

Criminal Code provisions preserved (section 27). The Part IV offences do not exclude offences under other Acts. A person committing diamond theft in a designated area may face charges under both this Act and the Criminal Code (WA).

Protection from liability (section 28). Security officers and other persons acting in good faith under Part IV are protected from liability for acts done in the exercise of Part IV powers.

Designation of areas. The Governor may by Order in Council designate land or premises as a designated area at any time where mining, processing, or related operations under the Agreement are being or proposed to be carried out.

By-law making. By-laws are made by the Governor on the recommendation of the joint venturers, gazetted, and take effect on publication.

Termination. Section 5 references the "termination date" of the Agreement. On termination, the Money Lenders Act exemption ceases and the Agreement's financial provisions wind down. The mine closed in November 2020 and the operational phases of the Agreement wound down accordingly.

Security and Related Activities (Control) Act 1996 (WA). Section 26 applies the Security Act's provisions to the security operations of the designated areas. Security officers must be licensed under that Act. Section 14's definition of security officer cross-references the Security Act.

Mining Act 1978 (WA). Part III of the Diamond Act interacts extensively with the Mining Act regarding the registration and validity of mineral claims, the extinguishment of competing rights, and the protection of the joint venturers' mining tenements.

Health Practitioner Regulation National Law (Western Australia). Section 14's definition of medical practitioner (relevant to strip searches) cross-references the National Law.

Road Traffic Act 1974 (WA). Section 14's definition of vehicle for Part IV purposes takes the Road Traffic Act meaning.

Police Act 1892 (WA). Section 14 defines police officer by reference to the Police Act.

Native Title Act 1993 (Cth). While not referenced in the Diamond Act itself, the Argyle mine site has been the subject of native title litigation (Brown v WA [2012] FCAFC 154, Ward v WA). The interaction between the Diamond Act's property rights regime and native title rights has been litigated in the broader native title context.

Money Lenders Act 1912 (WA). Section 5 exempts loans between parties to the Agreement from the Money Lenders Act during the Agreement's term. This reflects the large-scale financing arrangements typical of major resource projects.

The mine has closed but the Act remains in force. The Argyle Diamond Mine ceased operations in November 2020. However, the Act remains technically in force. Post-closure obligations under the Agreement (rehabilitation, bond release, liability management) continue. The security regime in Part IV technically applies to any designated areas that have not been de-designated by Order in Council.

Reverse onus for diamond possession offences. Section 16 places the proof of lawful authority or excuse on the defendant. This is a reverse onus provision that may raise constitutional considerations under Kable principles or proportionality review.

Strip searches by security officers. Section 21 gives security officers powers that include detaining and searching persons in designated areas, in circumstances that may include body searches. These are unusual powers for private security operators outside the police force. Section 23 confirms police powers are additional, not replaced.

By-law penalties are very low. The maximum penalty for by-law contraventions under section 4(2)(b) is $100, reflecting the 1981 drafting. This has not been updated and may not be a meaningful deterrent for modern by-law contraventions.

Security check at controlled access point. A worker employed in the Argyle mine precinct (historically designated by Order in Council) enters the designated area through a controlled access point. Under section 17, the security officer at the point may require the worker to submit to a search of their person and belongings for uncut diamonds. The worker must comply or face an offence charge for failing to comply with the officer's requirements.

Suspected diamond theft. A security officer on patrol in the designated area reasonably suspects that a departing worker has an uncut diamond in their possession without authority. Under section 21, the officer may detain the worker and conduct a search. If diamonds are found without lawful authority, the worker faces a maximum of $10,000 fine or 2 years imprisonment under section 16.

Native title and Agreement rights. A native title claim is lodged over land within the Argyle mine area. The Diamond Act's protections of the joint venturers' mining tenements under Part III interact with the native title rights recognised under the Native Title Act 1993 (Cth). This interaction requires analysis of both the Diamond Act's property regime and the native title framework established in subsequent Commonwealth and State legislation.