Part 5Exploration licence

Part 5—Exploration licence 28—Preliminary (1) In this Part— exploration release area means an area identified as an exploration release area in an exploration release area notice; exploration release area notice means a notice published in relation to relinquished ground under subsection (5); open ground means land— (a) that— (i) is not subject to an existing mineral tenement; and (ii) subject to paragraph (d), is not relinquished ground; or (b) that has become available due to the partial surrender of a mineral tenement, other than where the Minister has determined that the land should be considered to be relinquished ground; or (c) that has become available due to the reduction in the size of an exploration licence on the amalgamation of an expenditure commitment or on renewal of an exploration licence under this Part (other than under section 30A(11)); or (d) that has been subject to an exploration release area notice and has become available because no exploration licence was granted in relation to the relevant exploration release area on account of an application made during the application period specified in the notice; or (e) that has been the subject of an exploration licence and is to be considered as open ground by virtue of a determination of the Minister; or (f) that is to be considered as open ground after the land has been the subject of a reservation order under section 8 or subject to a notice under section 15 by virtue of a determination of the Minister; relinquished ground means land— (a) over which an exploration licence has applied where the exploration licence— (i) has expired; or (ii) has been cancelled or fully surrendered; or (iii) has been the subject of an application for renewal, but the application has been withdrawn, other than where the Minister has determined that the land should be considered as open ground, or should be the subject of a mineral tenement granted to a particular person; or (b) that— (i) has been the subject of a reservation under section 8 and that reservation has been revoked; or (ii) has been the subject of a notice under section 15 and the completion date under that notice has expired, other than where the Minister has determined that the land should be considered as open ground, or should be the subject of a mineral tenement granted to a particular person; or (c) that has been the subject of retention status under section 33B and that status has expired under that section without the land becoming the subject of a mining lease or retention lease, unless the land has returned to its original status under the relevant exploration licence; or (d) that is to be considered as relinquished ground by virtue of another provision of this Act; or (e) that is considered as relinquished ground rather than as open ground by virtue of a determination of the Minister after the partial surrender of a mineral tenement; or (f) that constitutes relinquished ground under the regulations. (2) An exploration licence is granted by the Minister. (3) An exploration licence may be granted— (a) in relation to an exploration release area; or (b) in relation to open ground. (4) If land becomes relinquished ground— (a) a person may not make an application for an exploration licence in relation to any part of the land; and (b) a mineral claim may not be established in relation to any part of the land, other than a mineral claim relating to extractive minerals, until the land is subject to an exploration release area notice. (5) An exploration release area notice will be a notice in a form determined by the Minister and will be issued by the Minister (in such manner as the Minister thinks fit) in relation to relinquished ground at a time determined by the Minister after the land becomes relinquished ground. (6) An exploration release area notice will specify— (a) the exploration release area; and (b) the application period for that exploration release area. 29—Nature of exploration licence (1) An exploration licence authorises the holder of the licence to carry out exploration operations of a kind described in the licence in respect of land described, or referred to, in the licence. (2) An exploration licence must not be granted in respect of extractive minerals. (3) An exploration licence does not (and cannot) authorise the holder of the licence to carry out exploration operations for precious stones on land within a precious stones field that is outside an opal development area, or on land within an exclusion zone under the Opal Mining Act 1995. 29A—Application for exploration licence (1) An application for an exploration licence— (b) must identify the boundaries of the land in respect of which the licence is being sought in accordance with the requirements of section 56E; and (c) must be accompanied by such information as may be prescribed by the regulations; and (d) must be accompanied by the prescribed application fee. (2) If an application relates to an exploration release area (and is lodged with the Director within the application period for that exploration release area), the following provisions will apply: (a) if the application is the only application received during the application period—the application will be assessed in accordance with this Act; (b) if the application is 1 of 2 or more applications received during the application period— (i) the applications will be ranked according to their merits after taking into account such factors as the Minister considers appropriate in the particular circumstances; and (ii) the highest ranked application will be considered for the grant of an exploration licence but if 2 or more applications are assessed as being of equal merit, they will be placed in a ballot and the application selected by the ballot will be considered for the grant of an exploration licence in accordance with this Act. (3) An application that relates to open ground may be made at any time. (4) The following provisions will apply in relation to applications that relate to open ground: (a) if, on a particular day, the Director receives only 1 application—the application will be assessed in accordance with this Act (and the determination of the application will take priority ahead of an application for an overlapping area lodged with the Director on a later day); (b) if, on a particular day, the Director receives 2 or more applications that relate to the same land (wholly or in part)— (i) the applications will be ranked according to their merits after taking into account such factors as the Minister considers appropriate in the particular circumstances; and (ii) the highest ranked application will be considered for the grant of an exploration licence but if 2 or more applications are assessed as being of equal merit, they will be placed in a ballot and the application selected by the ballot will be considered for the grant of an exploration licence in accordance with this Act. (5) The Minister may require the applicant to furnish the Minister with any additional information specified by the Minister (and that information must be furnished within any period specified by the Minister). (6) A ranking under this section will cease to apply if the Minister cancels the ranking on the ground— (a) that the application is found to be invalid; or (b) that there is some other default, defect or circumstance that the Minister considers is sufficiently significant to warrant the cancellation of the ranking. (7) The Minister will not grant an exploration licence unless or until the fee payable under section 31 has been received and if such a fee is not paid in relation to an application that relates to an exploration release area within a period determined by the Minister, the Minister may refuse the application and proceed with the consideration of the application made in relation to the same exploration release area with the next highest ranking (if any) (and if no application is then granted the relevant land will become open ground). (8) Furthermore, the Minister may at any time and without consultation with the applicant or taking any other step, refuse an application at any stage of its consideration under this Act if— (a) the applicant fails to comply with a requirement under this Act that is relevant to the making or consideration of the application; or (b) the Minister considers— (i) that the applicant has not proceeded with reasonable diligence to obtain any other permission, authorisation, consent or other form of approval under another Act or law that is relevant in the circumstances; or (ii) that there are other sufficient grounds for not assessing the application further after taking into account the public interest and such other matters as the Minister thinks fit. 29B—Grant of exploration licence (1) If the Minister decides to grant an exploration licence, the licence will be taken to be granted under this Act when the licence is registered on the mining register (and the term of the licence will be taken to commence from the date of registration). (2) The Minister must give notice of the granting of an exploration licence in the manner prescribed by the regulations. 30—Incidents of licence (1) An exploration licence shall— (a) describe or delineate the lands in respect of which it is granted; and (b) be subject to such terms or conditions as may be prescribed and to such additional terms or conditions as the Minister thinks fit and specifies in the licence. (2) The Minister shall, in determining the terms and conditions subject to which a licence is to be granted under this Part, insofar as the Minister considers to be necessary or appropriate in view of the nature and extent of the licence and any other relevant factor, give consideration to the protection of— (a) any aspect of the environment that may be affected by the conduct of operations in pursuance of the licence; (b) any other lawful activities that may be affected by those operations; (d) any Aboriginal sites or objects within the meaning of the Aboriginal Heritage Act 1988 that may be affected by those operations, and may take into consideration such other factors as he considers appropriate in the particular case. (4) The Minister may, under the terms of an exploration licence or by conditions attached to an exploration licence, limit or define the extent or scope of operations authorised under the licence. (5) Without limiting any other section, the Minister may add, vary or revoke a term or condition of an exploration licence at any time during the term of the licence considered appropriate by the Minister. (6) However, if the Minister acts under subsection (5) without the agreement of the holder of the licence, the holder of the licence may appeal to the ERD Court in relation to the matter. (7) The ERD Court may, on hearing an appeal under subsection (6)— (b) vary or revoke any term or condition imposed by the Minister, or impose any term or condition considered appropriate by the Court; 30AAA—Expenditure (1) Subject to this section, it will be a condition of an exploration licence that the tenement holder will achieve at least a level of expenditure specified in or in relation to the licence on operations carried out under the licence in accordance with the requirements of this section (an expenditure commitment). (2) The initial expenditure commitment will be based on information furnished to the Minister as part of the application for the exploration licence (and may be varied from time to time by the Minister taking into account the operation of this section). (3) The tenement holder must, at such times as may be prescribed by the regulations, furnish a return in a manner and form determined by the Minister that contains— (a) a statement— (i) outlining the exploration operations carried out under the exploration licence within a period prescribed by the regulations; and (ii) declaring the amount of expenditure incurred in carrying out those operations; and (b) a statement— (i) outlining the exploration operations that the tenement holder intends to carry out under the exploration licence over an ensuing period prescribed by the regulations; and (ii) declaring the amount of expenditure that is estimated to be incurred in carrying out those operations. (4) A statement under subsection (3)(a)— (a) must be accompanied by such information or evidence required by the Minister; and (b) will be registered by the Mining Registrar on the mining register. (5) Any expenditure commitment under a preceding subsection must at least be at a monetary level set by or under a policy developed and published by the Minister from time to time for the purposes of this section. (6) A statement under subsection (3)(a), and any information or evidence required under subsection (4)(a), must, if the Minister so requires, be verified by an independent person with qualifications, and in a manner, specified by the Minister. (7) Any cost associated with a requirement under subsection (6) will be borne by the tenement holder. (8) A report provided under subsection (6) will, if the Minister so determines, be registered on the mining register. (a) a person fails to comply with a preceding subsection; or (b) the Minister has reason to believe that an amount of expenditure that has actually been incurred is less than an expenditure commitment, the Minister may (without consultation with the tenement holder) alter the relevant exploration licence by reducing the licence area by an amount determined by the Minister. (10) The Minister may, on application under this subsection, allow a tenement holder or tenement holders to amalgamate their expenditure commitments in relation to 2 or more exploration licences in such manner or to such extent as the Minister may determine. (11) The Minister may, in assessing an application under subsection (10), take into account such matters as the Minister thinks fit, including— (a) the relationship between any tenement holders who are parties to the application; and (b) the proximity of the relevant exploration licences to each other. (12) If an amalgamation of expenditure commitments is allowed under subsection (10), the exploration licences to which the amalgamations relate will be altered by reducing their licence areas by an amount or amounts determined by the Minister after consultation with the tenement holders. (13) The Minister may, on application by the tenement holder— (a) approve the deferment of an amount of expenditure under an expenditure commitment; or (b) approve the variation of an amount of expenditure that would otherwise be required under an expenditure commitment. (14) This section applies subject to any variation to an expenditure commitment under section 33B. 30AA—Area of licence (1) The area of the land in respect of which an exploration licence is granted must not exceed 1 000 square kilometres unless, in the opinion of the Minister, circumstances exist that justify the grant of a licence in respect of a greater area. (2) However, if the exploration licence allows for exploratory operations for precious stones in an opal development area, the area of land in respect of which a licence is granted cannot exceed 20 square kilometres unless, in the opinion of the Minister, circumstances exist that justify the grant of a licence in respect of a greater area. (3) The holder of an exploration licence may apply to the Minister for approval to surrender a part of the area of the licence under an agreement that is intended to enable another party to the agreement (a designated party) to obtain a new exploration licence in relation to the land to be surrendered. (4) An application under subsection (3)— (b) must be accompanied by such information as may be prescribed by the regulations; and (c) must be accompanied by the prescribed fee. (5) An application may not be made under subsection (3)— (a) if the exploration licence is due to expire within 2 years of the making of the application; or (b) if the other party to the agreement is, in relation to the tenement holder, a related body corporate. (6) If the Minister decides to consider an application under subsection (3) (and notifies the parties accordingly)— (a) the designated party has a period of 6 months to obtain an exploration licence over the land to which the application relates, or such longer period as may be allowed by the Minister; but (b) if an exploration licence is not granted to the designated party within the period that applies under paragraph (a), the proposed surrender will be taken to be rejected. (7) The tenement holder (and the exploration licence) will continue to be subject to all the requirements of this Act in relation to the land to which an application under subsection (3) relates while the designated party seeks to obtain an exploration licence over the land. (8) The tenement holder may at any time withdraw an application under subsection (3) by notice given to the Minister in accordance with the regulations. (9) If an application is withdrawn, an exploration licence will not be granted to the designated party under this section. (10) If an exploration licence is granted to the designated party on application under subsection (3), the land to which the application relates will be taken to have been surrendered by the tenement holder on the date on which the new exploration licence is granted (but will not be considered to be open ground for the purposes of this Part). (11) In addition and without limiting any other provision of this Act, the Minister may at any time, on application by the tenement holder or with the consent of the tenement holder, reduce the area of the licence. 30A—Term and renewals of licence (1) An exploration licence is to be granted for a term decided by the Minister of up to 6 years. (2) If an exploration licence is granted for a term of less than 6 years, the licence may include a right of renewal but not so the aggregate term of the licence exceeds 6 years during this initial period. (3) An exploration licence that does not include in its terms a right of renewal may be renewed at the discretion of the Minister from time to time, but not so the aggregate term of the licence exceeds 6 years. (4) An application for renewal of an exploration licence must be made to the Minister in a manner and form determined by the Minister before the date of expiry of the licence (including an expiry after 1 or more renewals under this section). (4a) An application under subsection (4) must be accompanied by— (a) such information as may be prescribed by the regulations; and (b) any other information that the Minister may require. (5) If an application for the renewal of an exploration licence is not decided before the date on which the licence is due to expire, the licence continues in operation until the application is decided and, if the licence is renewed, the renewal dates from the date on which the licence would, but for this subsection, have expired. (6) The Minister may, on renewing an exploration licence, add, vary or revoke a term or condition of an exploration licence. (7) The following provisions will apply in relation to the renewal of an exploration licence: (a) when the term or aggregate term of the licence has reached the period of 6 years from the grant date, the next renewal may be for a period of up to 6 years and if the renewal is granted for a period of less than 6 years then further renewals may be granted until the aggregate period of renewal is 6 years (so that the term of the licence reaches the 12th anniversary of the grant date); (b) if application is made for renewal of the licence for a period beginning from the 12th anniversary of the grant date— (i) the term of renewal may be for a period of up to 6 years and if the renewal is granted for a period of less than 6 years then further renewals may be granted until the aggregate period of renewal is 6 years (so that the term of the licence reaches the 18th anniversary of the grant date); and (ii) the area of the licence must be reduced by 50% (being this percentage of the area of the licence at the grant date) at the time of renewal (from the 12th anniversary of the grant date); (c) the result will be that the maximum period of an exploration licence with any renewals can be up to (but not exceeding) 18 years. (8) Subsection (7) is subject to the qualification that— (a) the Minister and the tenement holder may at any time agree to reduce an area by a percentage that exceeds the percentage referred to in that subsection; and (b) lesser reductions may be made by the Minister if retention status has been granted in relation to the exploration licence under section 33B. (9) Despite a preceding subsection, the holder of an exploration licence may, before the date of expiry of the licence, apply to the Minister for the renewal of the licence pending a decision by the Minister on an application for the grant of a mining lease or a retention lease that has been made by the tenement holder under this Act. (10) If an application for the renewal of an exploration licence is made under subsection (9), the licence continues in operation until the application for the mining lease or retention lease (as the case may be) is decided. (11) Subsection (10) operates subject to the qualification that on the day on which the licence would otherwise expire— (a) the area of the licence is reduced, by operation of this subsection, to the area in relation to which the application for the mining lease or retention lease (as the case may be) applies; and (b) the balance of the area will be taken to be relinquished ground. (12) This section does not limit the operation of any other section that provides for the relinquishment, excision or other reduction of land in respect of which an exploration licence is granted. (13) For the purposes of this section, the grant date is the date of the original grant of the relevant exploration licence. 30AB—Excise of land for public purposes (1) If, in the opinion of the Minister, any land comprised in an exploration licence is required for a public purpose, the Minister may, in a manner and form prescribed by the regulations, excise that land from the total area comprised in the licence, and the licence will then cease to apply to the land (but the land will not be considered to be open ground for the purposes of this Part). (2) If the Minister acts under subsection (1), the tenement holder may apply to the appropriate court for an order that the Minister pay compensation to the tenement holder for the money expended by the tenement holder in prospecting for minerals in the area excised from the total area comprised in the exploration licence. (3) The appropriate court may, on hearing an application under subsection (2), determine an amount that would fairly compensate the tenement holder to the extent referred to in that subsection and order that the amount so determined be paid by the Minister to the tenement holder (and this amount will be recoverable from the Minister). 31—Fee (1) The holder of an exploration licence shall pay to the Minister, annually and in advance, such fee as may be prescribed. (1a) A regulation made for the purposes of subsection (1) may— (a) fix various methods for the calculation of a fee (including according to the total area of land in respect of which an exploration licence is granted); (b) fix differential fees on a basis prescribed by the regulations. (2) The Minister may reduce, remit or refund a fee under this section if, in his opinion, it is necessary or expedient so to do. (3) The liability to pay a fee under this section is a debt due to the Crown. 33A—Minister may describe or delineate land in any manner (1) Subject to the requirements of this Act, the Minister may describe or delineate the land in respect of which an exploration licence is granted in such manner as the Minister deems appropriate. (2) Section 80 does not apply to the extent that an alteration in the manner in which land is described or delineated results in part of the licence area of one exploration licence being superimposed over land comprising part of the licence area of another licence (as described or delineated immediately before the alteration). (3) The regulations may, in connection with the operation of subsection (2), prescribe terms and conditions governing the coexistence of exploration licences that have been granted over the same land as a result of the Minister altering the manner in which the land is described or delineated. (4) If part of the licence area of one exploration licence is superimposed over land comprising part of the licence area of another licence under this section, and rights of one of the licensees in respect of the part are suspended in accordance with the regulations, the suspension of the rights will continue until either of the following occurs: (a) the part ceases to comprise part of the licence area of the other licence; or (b) the other licence expires. 33B—Retention status (1) The holder of an exploration licence may apply to the Minister for approval of retention status in relation to the licence under this section. (2) An application— (b) must identify the boundaries of the land in respect of which retention status is being sought in accordance with the requirements of section 56E; and (c) must be accompanied by such information as may be prescribed by the regulations. (3) The Minister may grant retention status in relation to the exploration licence— (a) if satisfied that the tenement holder has been unable to obtain 1 or more approvals under another Act or Acts that are required before the tenement holder can commence or continue exploration operations in relation to the land to which the application relates; or (b) if satisfied— (i) that there is an identified mineral resource located in, on or under the land to which the application relates; and (ii) that it is unreasonable to expect an application to be made for a mining lease or a retention lease because it is not commercially viable to spend time and money on developing the resource; and (iii) that it is reasonably likely that mining the relevant land will become commercially viable within the next 6 years; or (c) if satisfied (in the Minister's absolute discretion) that there are other circumstances which justify the granting of retention status under this section. (4) The area of land in relation to which retention status applies will be an area that the Minister considers, after consultation with the tenement holder, to be reasonable in the circumstances (and may be less than the area delineated in the application). (5) The Minister may, in granting retention status in relation to an exploration licence, or at a subsequent time, do 1 or more of the following: (a) provide for a reduction in any expenditure commitment applying under section 30AAA; (b) provide for less reduction in the area of the licence applying in relation to a renewal of the licence under section 30A; (c) provide for a reduction in the fees that would otherwise be payable under section 31. (6) Retention status is to be granted for a term determined by the Minister of up to 6 years. (7) If retention status is granted for a term of less than 6 years, the Minister may extend the term (from time to time) so the aggregate term of retention status does not exceed 6 years. (8) The Minister may then extend the term of retention status beyond 6 years if satisfied that the grounds on which retention status may be granted under subsection (3) still apply in relation to the matter. (9) The Minister may, when granting retention status in relation to an exploration licence, or at a subsequent time, make it a condition of the licence that the tenement holder carry out work, in accordance with a work program approved by the Minister, in relation to land to which the retention status applies. (10) A work program to be carried out by the tenement holder must, if the Minister so requires, be submitted with the application for retention status and from time to time as required under a condition of the licence imposed under subsection (9). (11) The Minister may approve a proposed work program with or without addition or modification. (12) The Minister may, on application by the tenement holder— (a) approve deferment of any work to be carried out under an approved work program; or (b) approve the variation of an approved work program; or (c) cancel an approved work program. (13) The Minister may, at any time, by written notice accompanied by such information or evidence as required by the Minister, require the holder of an exploration licence that has retention status by virtue of the operation of subsection (3) to show cause— (a) why 1 or more approvals required under another Act or Acts have not been obtained; or (b) why a mining lease or a retention lease should not be applied for in relation to the whole or any part of the land comprised in the exploration licence. (14) If— (a) the holder of the exploration licence fails to show cause (to the satisfaction of the Minister) within a period specified by the Minister in a notice under subsection (13); or (b) the Minister considers that the holder of the exploration licence has failed to show sufficient cause, the Minister may, by further notice to the tenement holder, require the tenement holder to apply in accordance with this Act for a mining lease or a retention lease in relation to the whole or any part of the land comprised in the exploration licence. (15) If the tenement holder fails to comply with a notice under subsection (14) within a period specified by the Minister, or an application for a mining lease or retention lease is unsuccessful after a notice has been issued under subsection (14), any retention status applying in relation to the land to which the notice relates will expire and the land will be excised from the area of the exploration licence and become relinquished ground. (16) If— (a) land in relation to which retention status applies is not subject to a notice under subsection (13); and (b) the term of retention status comes to an end while the exploration licence is still in force, the land will return to its original status under the exploration licence.