Offshore Minerals Act 1994

The Licence System

You cannot explore for or mine offshore minerals without a licence. Doing so attracts a penalty of 300 penalty units. There are four types of licences:

1. Exploration Licence — for the initial search phase; allows exploration and taking of mineral samples; lasts 4 years, renewable up to 3 times (in 2-year blocks), but you must surrender 50% of your licence area on each renewal
2. Retention Licence — a holding licence when a deposit is found but full commercial mining isn't yet viable; allows exploration and limited recovery
3. Mining Licence — for full commercial extraction
4. Works Licence — for engineering or support activities outside the main licence area

There is also a Special Purpose Consent for minor activities like scientific surveys or collecting small mineral samples.

How Licences Work

• You apply, the application is publicly advertised, the public can comment
• A Joint Authority (the relevant state minister + the federal minister together) decides whether to grant the licence
• Licences are provisionally granted first, then you must formally accept, pay fees, and lodge any required security deposit before the licence becomes fully effective
• All licences must be registered in an offshore mining register to be valid
• Licences can be transferred, shared between multiple holders, and have interests (including security interests) registered against them

Geographic Coverage

The Act applies to offshore areas adjacent to all Australian states and several external territories including Ashmore and Cartier Islands, Norfolk Island, Christmas Island, Cocos (Keeling) Islands, Heard Island and McDonald Islands, and the Coral Sea Islands Territory.

Key Protections

• Native title is not extinguished by mining licences, but is subject to the licence holder's rights during the licence period
• Licence holders must not unnecessarily interfere with navigation, fishing, native title rights, or conservation (penalty: 100 penalty units)
• The government can suspend licence rights in the national interest, but must pay compensation if this amounts to an acquisition of property