sec.277Provision of security

### sec.277 Provision of security Before a mining lease is granted or renewed, the Minister must decide the security to be deposited by the holder of the mining lease to ensure the holder— complies with the conditions of the lease; and complies with this Act; and rectifies actual damage that may be caused by activities under the lease to pre-existing improvements for the lease; and pays amounts (other than penalties) payable under this Act to the State. The Minister may, at any time and in the Minister’s absolute discretion, decide that the holder must deposit extra security. The Minister must not grant or renew a mining lease until the applicant for the grant or renewal deposits the security required under this section. The Minister, if satisfied that any condition of the mining lease or any provision of this Act has not been complied with or that damage referred to in subsection (1) (c) has been caused by any person purporting to act under the authority of the mining lease or who enters land upon the instruction of the holder, the Minister may require that person to take all action necessary to rectify that noncompliance or damage and, save where the person was not the holder and was not upon the land with the holder’s approval at the time the damage was caused, may utilise for that purpose the whole or part of the amount of the security deposited in respect of that mining lease. If the amount of the security deposited for a mining lease is not earlier reviewed under subsection (6) , the Minister shall review that amount at the expiration of 5 years from the grant of the mining lease or from the previous review. On the use under this section of any part of the security deposited in respect of a mining lease, the Minister may review the amount of the security deposited in respect of that mining lease. If, upon that review, the Minister considers that a further amount of security should be deposited in respect of that mining lease, the Minister shall require the holder of the mining lease, within the time specified by the Minister to deposit a further specified security. 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. It shall be a condition of a mining lease that the holder shall deposit security or further security from time to time in accordance with a requirement made as provided by this section. Where a mining lease has expired or been terminated, the Minister must, subject to subsection (12) , refund to the holder of the mining lease (or as the holder in writing directs) any security deposited and not utilised as provided by subsection (4) less any amounts determined by the Minister to be retained towards— rectification of any matters caused by the noncompliance with any of the conditions of the mining lease or with any order or direction made or given by the Minister under this Act and directed to the holder; and amounts (other than penalties) the holder owes to the State under this Act (whether before or after the termination); and rates and charges (including interest on unpaid rates and charges) owing to a local government by the former holder for the mining lease. For matters mentioned in subsection (10) , security must be applied to each of the matters in turn. If the Minister accepts a bond, guarantee or indemnity by, or another financial arrangement with, a financial institution, insurance company or other credit provider as security under this section, any amount payable to the holder under subsection (10) must be refunded to the financial institution, insurance company or credit provider and not to the holder of the mining lease to which the security relates. s 277 amd 1995 No. 21 s 77 ; 1997 No. 17 s 74 sch ; 2000 No. 64 ss 145 , 174 sch ; 2020 No. 14 s 133 (sec.277-ssec.1) Before a mining lease is granted or renewed, the Minister must decide the security to be deposited by the holder of the mining lease to ensure the holder— complies with the conditions of the lease; and complies with this Act; and rectifies actual damage that may be caused by activities under the lease to pre-existing improvements for the lease; and pays amounts (other than penalties) payable under this Act to the State. (sec.277-ssec.2) The Minister may, at any time and in the Minister’s absolute discretion, decide that the holder must deposit extra security. (sec.277-ssec.3) The Minister must not grant or renew a mining lease until the applicant for the grant or renewal deposits the security required under this section. (sec.277-ssec.4) The Minister, if satisfied that any condition of the mining lease or any provision of this Act has not been complied with or that damage referred to in subsection (1) (c) has been caused by any person purporting to act under the authority of the mining lease or who enters land upon the instruction of the holder, the Minister may require that person to take all action necessary to rectify that noncompliance or damage and, save where the person was not the holder and was not upon the land with the holder’s approval at the time the damage was caused, may utilise for that purpose the whole or part of the amount of the security deposited in respect of that mining lease. (sec.277-ssec.5) If the amount of the security deposited for a mining lease is not earlier reviewed under subsection (6) , the Minister shall review that amount at the expiration of 5 years from the grant of the mining lease or from the previous review. (sec.277-ssec.6) On the use under this section of any part of the security deposited in respect of a mining lease, the Minister may review the amount of the security deposited in respect of that mining lease. (sec.277-ssec.7) If, upon that review, the Minister considers that a further amount of security should be deposited in respect of that mining lease, the Minister shall require the holder of the mining lease, within the time specified by the Minister to deposit a further specified security. (sec.277-ssec.8) 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. (sec.277-ssec.9) It shall be a condition of a mining lease that the holder shall deposit security or further security from time to time in accordance with a requirement made as provided by this section. (sec.277-ssec.10) Where a mining lease has expired or been terminated, the Minister must, subject to subsection (12) , refund to the holder of the mining lease (or as the holder in writing directs) any security deposited and not utilised as provided by subsection (4) less any amounts determined by the Minister to be retained towards— rectification of any matters caused by the noncompliance with any of the conditions of the mining lease or with any order or direction made or given by the Minister under this Act and directed to the holder; and amounts (other than penalties) the holder owes to the State under this Act (whether before or after the termination); and rates and charges (including interest on unpaid rates and charges) owing to a local government by the former holder for the mining lease. (sec.277-ssec.11) For matters mentioned in subsection (10) , security must be applied to each of the matters in turn. (sec.277-ssec.12) If the Minister accepts a bond, guarantee or indemnity by, or another financial arrangement with, a financial institution, insurance company or other credit provider as security under this section, any amount payable to the holder under subsection (10) must be refunded to the financial institution, insurance company or credit provider and not to the holder of the mining lease to which the security relates. - (a) complies with the conditions of the lease; and - (b) complies with this Act; and - (c) rectifies actual damage that may be caused by activities under the lease to pre-existing improvements for the lease; and - (d) pays amounts (other than penalties) payable under this Act to the State. - (a) rectification of any matters caused by the noncompliance with any of the conditions of the mining lease or with any order or direction made or given by the Minister under this Act and directed to the holder; and - (b) amounts (other than penalties) the holder owes to the State under this Act (whether before or after the termination); and - (c) rates and charges (including interest on unpaid rates and charges) owing to a local government by the former holder for the mining lease.