Creates a licensing system for exploring for and recovering minerals (other than petroleum) in Western Australia’s coastal waters (the first 3 nautical miles from the baseline). Key authorisations are: exploration licences, retention licences, mining licences, works licences and special purpose consents. (See Part 2, especially sections 39, 45, 132, 192, 267 and 315.)
Each licence follows a three‑step process before it is fully effective: provisional grant, proper acceptance (written acceptance, any security and payment of fees) and registration in the State Offshore Mining Register. (See section 40 and Parts 2.2–2.5.)
The Minister is given broad powers to grant, refuse, vary, suspend or cancel licences and to impose conditions (including securities, work or spending commitments, environmental protections and penalties). Many decisions and conditions are discretionary and must be communicated in writing. (See sections 41, 63, 118, 121, 135, 195, 265 and related provisions.)
The Act sets commercial rules: licence terms and renewal limits, mandatory area reduction for exploration licences on renewal (50% surrender at each renewal — section 104), limits on numbers of blocks per application, fee caps and royalty arrangements (including Ministerial power to fix royalty rates and a requirement that 40% of royalties received be paid to the Commonwealth). (See sections 88–96, 104, 197–199, 424–435.)
Application for exploration licence over tender blocks 50
How to apply 50
Payment of fee 51
Request for further information 51
Section number not used 51
Minister may provisionally grant licence 51
Section number not used 52
Successful applicant must be notified 52
Acceptance of grant of exploration licence over tender blocks 53
Conditions applicable to licence on grant 53
Lapse of provisional grant of exploration licence 53
Provisional grant to next applicant if grant lapses 53
Div 4
Duration of exploration licence
Division 4 — Duration of exploration licence
Initial term of exploration licence 54
Term of renewal of exploration licence 54
Effect of suspension of rights on term of exploration licence 55
Effect of application for renewal on term of exploration licence 55
Effect of application for retention licence or mining licence on term of exploration licence 56
Effect of application for extension on term of licence 56
Extension of licence — activities disrupted 57
Grant of licence extension — activities disrupted 57
Extension of licence — other circumstances 59
Grant of licence extension — other circumstances 59
Notification of decision 59
Div 5
Voluntary surrender of part of exploration licence area
Division 5 — Voluntary surrender of part of exploration licence area
Voluntary surrender of blocks if discrete area remains 60
Voluntary surrender of blocks if up to 3 discrete areas remain 60
Div 6
Application for and grant of renewal of exploration licence
Division 6 — Application for and grant of renewal of exploration licence
Application for renewal of exploration licence 61
When application to be made 62
How to apply for renewal 62
Mandatory reduction of licence area on renewal of exploration licence 63
Request for further information 64
Payment of fee 64
Section number not used 64
Provisional renewal of an exploration licence 64
Section number not used 65
Applicant must be notified 65
Amendment of conditions 66
Amendment of security requirements 66
Extension of primary payment period 67
Acceptance of renewal of exploration licence 67
Conditions applicable to licence on renewal 68
Lapse of provisional renewal of exploration licence 68
Div 7
Obligations associated with exploration licence
Division 7 — Obligations associated with exploration licence
General 68
Conditions of exploration licence 69
No conditions requiring payment of money 70
Variation of conditions 70
Exemption from or suspension of conditions 71
Automatic suspension of conditions if licence rights are suspended 73
Work practices 73
Licence holder must keep specified records etc. 73
Licence holder must assist inspectors 74
Div 8
Expiry of exploration licence
Division 8 — Expiry of exploration licence
General 74
Voluntary surrender of exploration licence 75
Automatic expiry of exploration licence when retention licence takes effect 75
Automatic expiry of exploration licence when mining licence takes effect 75
Cancellation of exploration licence 75
Obligations of former exploration licence holders and former associates 77
Part 2.3 — Retention licences
Retention licences 79
Activities authorised by a retention licence 79
Minister may cancel or not renew retention licence without compensation 80
Licence rights may be suspended 80
Compensation for acquisition of property due to suspension of rights 81
Division 2 — Application for and grant of retention licence
Application for retention licence 82
How to apply 82
Payment of fee 84
Application must be advertised 84
Request for further information 85
Section number not used 86
Minister may provisionally grant licence 86
Section number not used 86
Grounds for granting retention licence 86
Matters to be specified in the licence 87
Applicant must be notified 87
Amendment of conditions 88
Amendment of security requirements 88
Extension of primary payment period 89
Acceptance of grant of retention licence 89
Conditions applicable to licence on grant 90
Lapse of provisional grant of retention licence 90
Division 3 — Duration of retention licence
Initial term of retention licence 90
Term of renewal of licence 91
Effect of application for renewal on term of retention licence 91
Effect of application for mining licence on term of retention licence 92
Division 4 — Voluntary surrender of part of retention licence area
Voluntary surrender of blocks if discrete area remains 92
Division 5 — Application for and grant of renewal of retention licence
Application for renewal of retention licence 93
When application to be made 93
How to apply for renewal 93
Request for further information 94
Payment of fee 94
Section number not used 95
Provisional renewal of retention licence 95
Section number not used 95
Matters that may be taken into account 95
Refusal of application for renewal 96
Applicant must be notified 96
Amendment of conditions 97
Amendment of security requirements 98
Extension of primary payment period 98
Acceptance of renewal of retention licence 98
Conditions applicable to licence on renewal 99
Lapse of provisional renewal of retention licence 99
Division 6 — Obligations associated with retention licence
General 99
Conditions of retention licence 100
No conditions requiring payment of money 101
Variation of conditions 101
Exemption from or suspension of conditions 102
Automatic suspension of conditions if licence rights are suspended 103
Significant changes in circumstances to be reported to Minister 104
Work practices 104
Licence holder must keep specified records etc. 105
Licence holder must assist inspectors 105
Division 7 — Expiry of retention licence
General 106
Voluntary surrender of retention licence 106
Automatic expiry of retention licence when mining licence takes effect 106
Cancellation of retention licence, breach of condition etc. 107
Cancellation of retention licence, mining activities viable 108
Obligations of former retention licence holders and former associates 109
Part 2.4 — Mining licences
Mining licences 111
Activities authorised by a mining licence 111
Minister may cancel or not renew mining licence without compensation 112
Licence rights may be suspended 112
Compensation for acquisition of property due to suspension of rights 113
Division 2 — Application for and grant of mining licence over standard blocks
Application for mining licence over vacant standard block 114
Holder of exploration licence or retention licence may apply for mining licence 114
How to apply 115
Effect of inclusion of unavailable block in application 116
Payment of fee 116
Application must be advertised 116
How multiple applications are dealt with 117
Request for further information 118
Section number not used 118
Minister may provisionally grant licence 118
Restriction in case of marine nature reserve or marine park 119
Refusal of application for mining licence made under section 198 119
Matters to be specified in the licence 120
Applicant must be notified 120
Amendment of conditions 121
Amendment of security requirements 121
Extension of primary payment period 122
Acceptance of grant of mining licence for standard block 122
Conditions applicable to licence on grant 123
Lapse of provisional grant of mining licence 123
Division 3 — Application for and grant of mining licence over tender block
Matters to be determined before applications for mining licence over tender blocks invited 123
Minister may invite applications for mining licence over tender blocks 124
Tender block licence notice — mining licence 124
Application for mining licence over tender blocks 125
How to apply 125
Payment of fee 126
Request for further information 126
Section number not used 127
Minister may provisionally grant licence 127
Restriction in case of marine nature reserve or marine park 127
Successful applicant must be notified 127
Acceptance of grant of mining licence over tender blocks 128
Conditions applicable to licence on grant 129
Lapse of provisional grant of mining licence 129
Provisional grant to next applicant if grant lapses 129
Division 4 — Duration of mining licence
Initial term of mining licence 130
Term of renewal of licence 130
Effect of application for renewal on term of mining licence 131
Division 5 — Voluntary surrender of part of mining licence area
Voluntary surrender of blocks if discrete area remains 131
Division 6 — Application for and grant of renewal of mining licence
Application for renewal of mining licence 132
When application to be made 132
How to apply for renewal 132
Request for further information 133
Payment of fee 133
Section number not used 134
Provisional renewal of mining licence 134
Section number not used 134
Matters that may be taken into account 134
Refusal of application for renewal 134
Applicant must be notified 135
Amendment of conditions 136
Amendment of security requirements 136
Extension of primary payment period 137
Acceptance of renewal of mining licence 137
Conditions applicable to licence on renewal 138
Lapse of provisional renewal of mining licence 138
Division 7 — Obligations associated with mining licence
General 138
Conditions of mining licence 139
No conditions requiring payment of money 140
Variation of conditions 140
Exemption from or suspension of conditions 141
Automatic suspension of conditions if licence rights are suspended 143
Work practices 143
Licence holder must pay royalty 144
Licence holder must keep specified records 144
Licence holder must assist inspectors 144
Division 8 — Expiry of mining licence
General 145
Voluntary surrender of mining licence 145
Cancellation of mining licence 145
Obligations of former mining licence holders and former associates 146
Part 2.5 — Works licences
Works licences 148
Activities authorised by a works licence 148
Minister may cancel or not renew works licence without compensation 149
Division 2 — Application for and grant of works licence
Application for works licence 149
How to apply 149
Payment of fee 150
Applicant to notify licence holders affected by the application 150
Application must be advertised 150
Section number not used 151
Minister may provisionally grant licence 152
Section number not used 152
Matters to be specified in the licence 152
Applicant must be notified 152
Amendment of conditions 153
Amendment of security requirements 153
Extension of primary payment period 154
Acceptance of grant of works licence 154
Conditions applicable to works licence on grant 155
Lapse of provisional grant of works licence 155
Division 3 — Duration of works licence
Initial term of works licence 155
Term of renewal of works licence 156
Effect of application for renewal on term of works licence 156
Division 4 — Application for and grant of renewal of works licence
Application for renewal of works licence 157
When application to be made 157
How to apply for renewal 157
Payment of fee 158
Section number not used 158
Provisional renewal of works licence 158
Section number not used 159
Applicant must be notified 159
Amendment of conditions 159
Amendment of security requirements 160
Extension of primary payment period 160
Acceptance of renewal of works licence 161
Conditions applicable to works licence on renewal 161
Lapse of provisional renewal of works licence 162
Division 5 — Obligations associated with works licence
General 162
Conditions of works licence 162
No conditions requiring payment of money 164
Variation of conditions 164
Exemption from or suspension of conditions 164
Work practices 166
Licence holder must keep specified records etc. 166
Licence holder must assist inspectors 167
Division 6 — Expiry of works licence
General 167
Voluntary surrender of works licence 167
Cancellation of works licence 168
Obligations of former works licence holders and former associates 169
Part 2.6 — Special purpose consents
Special purpose consents 171
Activities authorised by a special purpose consent 171
Application for a consent 172
How to apply 172
Payment of fee 172
Applicant must obtain agreement of exploration, retention and mining licence holders affected by the application 173
Applicant to notify works licence holders affected by the application 173
Section number not used 174
Minister may grant special purpose consent 174
Section number not used 174
Matters to be specified in the consent 174
Duration of consent 175
Conditions of consent 175
Chapter 3 — Registration and Dealings
Part 3.1 — Registration
Division 1 — Preliminary
Register to be kept 176
Document files to be kept 176
Form of register and document file 177
Correction of errors in the register 177
Inspection of register and documents 178
Division 2 — Matters to be entered in register
Subdivision A — Licences
Licences 179
Renewal of licences 180
Extension of exploration licences 180
Expiry of licences 181
Variations etc. to licences 181
Transfer of licences 183
Other dealings in licences 184
Devolution of licences 185
Subdivision B — Caveats
Effect of a caveat 186
Lodgment of caveats 187
Form of caveat 187
Payment of fee 187
Caveat to be registered 187
Withdrawal of caveat 188
Form of withdrawal 188
Duration of caveat 188
Notice to caveat holder 189
Caveat holder may consent to registration 191
Orders that can be made by a court in relation to caveats 191
Division 3 — Miscellaneous
Fees for registration 192
352A. Exemption from duty 193
Protection from legal actions 193
Application to court for correction of register 194
Appeals against determinations under section 352 194
Section number not used 195
Evidentiary value of register 195
Certified copy of document on document file 195
Certification of registration action 195
Part 3
2 — Dealings in licences
Part 3.2 — Dealings in licences
Div 1
Dealings in licences to be in writing and registered
Division 1 — Dealings in licences to be in writing and registered
Dealings in licences to be in writing 197
Dealings in interests in licences not effective until registered 197
Division 2 — Approval of transfer of licences
Transfers require approval by Minister 197
Application for approval of transfer 198
Minister may ask for further information 199
Minister’s response to application for approval 199
Protection from legal actions 200
Part 4
Administration
Chapter 4 — Administration
Part 4.1 — Information management
Minister may ask person for information 201
Power to ask person to appear 202
Power to examine on oath or affirmation 202
Minister may ask for documents 203
Minister may ask for samples 204
Obligation to comply with request under section 367, 368, 369, 370 or 371 204
Immunity from use of information etc. given in response to request under section 367, 368, 369, 370 or 371 205
Restrictions on release of confidential material 206
Circumstances in which confidential material may be released 207
Certain reports to be made available 208
Part 4.2 — Monitoring and enforcement
Division 1 — Inspections
Compliance inspections 209
Powers exercisable in course of inspection 209
Inspection of licence‑related premises etc. without warrant 211
Inspection of other premises etc. with occupier’s consent 212
Inspection of other premises etc. with warrant 212
Procedure for obtaining warrant 212
Further provisions as to exercise of powers under warrant 213
Occupier to cooperate with inspector 213
Division 2 — Directions
Directions by Minister must be obeyed 214
Scope of directions 214
Minister may give directions 215
Direction may incorporate material in another document 216
Direction may impose absolute prohibition 216
Direction may extend to associates 216
Holder to give notice of direction to associates 217
Power to give directions after licence etc. ends 217
Effect of directions on other instruments 218
Minister may specify time for compliance 218
Minister may take action if holder fails to comply 218
Costs incurred by Minister in taking action under section 395 219
Defences to actions to recover debts 219
Division 3 — Securities
Securities 220
Determination of requirement to lodge security 220
Application of security 222
Division 4 — Restoration of environment
Removal of property from coastal waters 222
Rehabilitation of damaged areas 223
Division 5 — Safety zones
Declaration of safety zone around a structure or equipment 224
Effect of declaration of safety zone 224
– 420. Section numbers not used 225
Part 4.3 — Inspectors
Appointment of inspectors 226
Identity cards 226
Return of identity card 226
Part 4.4 — Licence fees and royalty
Division 1 — Licence fees
Definition 227
Licence fees 227
Limit on amount of fees 227
Time for payment 228
Division 2 — Royalty
Definition 228
Royalty 228
Rate of royalty 229
Reduction of royalty in certain cases 229
Fixing of landed value 230
Fixing of quantity 230
Time for payment 230
State to pay 40% of royalties to Commonwealth 230
Division 3 — Penalties and recovery
Penalty if fee or royalty overdue 231
Fees etc. recoverable as debts 231
Part 5
Miscellaneous
Chapter 5 — Miscellaneous
State functions under Part 5.1 of Commonwealth Act 232
Minister’s approval required for certain transactions under Land Administration Act 1997 232
Delegation by Minister 233
False statements 233
Service of documents on licence holders etc. 234
443A. Certain things are not personal property for the purposes of the Personal Property Securities Act 2009 (Commonwealth) 234
Regulations 234
Savings and transitional provisions 236
Sch 1
Area in which coastal waters are situated
Schedule 1 — Area in which coastal waters are situated
More sections below
Source text: opening excerpt
Sourced from the Western Australian Legislation website (legislation.wa.gov.au). Not the authorised version.
Western Australia
Offshore Minerals Act 2003
Western Australia
Offshore Minerals Act 2003
Contents
Chapter 1 — Introduction
Part 1.1 — Legislative formalities and background
Short title 2
Commencement 2
Commonwealth‑State agreement (the Offshore Constitutional Settlement) 2
Part 1.2 — Interpretation
Division 1 — General
Notes in the text 5
Interpretation 5
5A. Relationship with Environmental Protection Act 1986 9
Shares in a licence 9
Transfer of a licence 10
Successor licences 10
Section number not used 11
Position on the Earth’s surface 11
Section number not used 12
Power to vary and revoke instruments 12
Division 2 — Basic concepts
– 15. Section numbers not used 13
Coastal waters, and effect of change in baseline 13
Blocks 15
Reserved block 16
Standard block 17
Tender block 17
Discrete area 17
Minerals 17
Exploration 17
Recovery 18
Licence holder 18
Associates 18
Confidential information 19
Confidential sample 20
Part 1.3 — Administration of the Commonwealth‑State offshore area
Definitions 21
Minister as member of Joint Authority, or as Designated Authority 21
State officer acting under delegation 21
– 34. Section numbers not used 22
Administrative framework: an offshore mining register and document files are kept; transfers and other dealings must be in writing and registered; transfers require Ministerial approval; caveats may be lodged to protect asserted interests. (See Chapter 3, especially sections 328–340 and 341–351.)
Monitoring and enforcement tools: inspectors with inspection and seizure powers; Ministerial directions (including absolute prohibitions) that must be obeyed; penalties for non‑compliance; power for the Minister to take remedial action and recover costs. (See Part 4.2, especially sections 377–396.)
Confidentiality and information rules: licence holders provide data and samples to the Minister; confidential material is protected (criminal penalties for unauthorised release) but the Act sets limited exceptions and requires certain reports to be made available. (See sections 367–376 and 374–376.)
Environment and special areas: the Act works subject to the Environmental Protection Act (section 5A) and places specific controls on activity in marine reserves, parks and fish habitat protection areas, including requirements for consultation with other Ministers and, for some mining grants, parliamentary consent. (See sections 5A, 38A and 38B.)
Transitional and Commonwealth coordination: the Act implements the Offshore Constitutional Settlement by applying to State coastal waters (first 3 nautical miles) and provides for coordination with Commonwealth offshore laws; Schedule 2 brings existing coastal licences/leases under this Act. (See section 3 and Schedule 2.)
Who it affects
Licence applicants and holders (individuals and corporations, including foreign persons) — they pay application fees, annual licence fees and, for mining licences, royalties; they must meet licence conditions, lodge securities, keep records and submit reports. (See sections 37, 425, 429–434, 118, 254 and 399.)
Associates (contractors, agents, employees) of licence holders: many obligations and some directions extend to associates; the holder and associates can be jointly and severally liable. (See section 26 and sections 390–396.)
Other sea users and right‑holders (fisheries, pearling, navigation, native title holders): activities authorised by licences must not interfere unnecessarily with navigation, fishing, native title, pearling or conservation; consultations with relevant Ministers are required before grant. (See sections 44 and 38B; section 43 on native title.)
The State and Commonwealth: the State collects fees and royalties but must pay 40% of royalties to the Commonwealth (section 435); the Minister acts in some Commonwealth‑State joint arrangements (section 30) and must keep principles consistent with Commonwealth offshore rules (section 3).
Why it matters (purpose claimed and practical trade‑offs)
Official purpose claim: to provide a distinct, comprehensive regulatory regime for non‑petroleum minerals in Western Australia’s coastal waters (first 3 nm) while remaining consistent with Commonwealth arrangements (see section 3). The Act replaces or transfers coastal‑waters mining administration from the Mining Act framework into a coastal/offshore licensing regime (see Schedule 2).
Costs and compliance burden (concrete): applicants must prepare maps, technical and financial information, advertise applications, potentially pay competitive tender bids, lodge securities and comply with reporting, inspections and environmental conditions (see sections 54, 57, 75, 399, 124, 367–376, 378). These create upfront and ongoing administrative and capital costs for explorers and miners.
Incentives and behaviour changes:
Mandatory area reduction on exploration licence renewal (50% surrender; section 104) incentivises relinquishment of unprospective ground and reduces land‑banking.
Retention licences allow holders to keep rights where short‑term mining is not viable (sections 132–156), which balances the area‑relinquishment incentive but keeps tenure for future development.
Ministerial discretion over conditions, securities and approvals (sections 118, 399, 365) creates regulatory flexibility but increases investor uncertainty where decisions are not tightly rule‑based.
Trade‑offs and opportunity costs:
The Act centralises environmental, safety and data collection obligations (sections 118, 254, 304, 123, 259), which raises compliance costs but aims to manage public‑risk and information externalities.
The tender mechanism (sections 73–76 and 217–219) lets the State allocate scarce blocks competitively, but design of tender criteria (including accepting bids by money or proposed activity) can advantage better financed bidders or those able to shape evaluation criteria.
Risk of concentrated benefits and discretion-based advantages:
The Minister’s wide powers to set conditions, require securities and approve transfers (sections 118, 399, 363–365) create opportunities for regulatory prioritisation; where criteria are not tightly specified, decisions can advantage some firms over others. The Act sets procedures (advertising, consultation, avenues for submissions, and judicial review) but still leaves substantive discretion with the Minister.
Enforcement and compliance: the Act gives inspectors broad powers (search, copy, remove documents, take samples — section 378), and permits the Minister to act and recover costs if holders disobey directions (sections 395–396). That creates credible enforcement capacity but also compliance risk for operators.
Who pays, who decides, and what changes in behaviour (short list of concrete outcomes)
Who pays: licence applicants and holders (application fees, annual licence fees — Part 4.4 Division 1), mining licence holders (royalties; sections 429–434), holders who fail obligations (penalties, security forfeiture, cost recovery by the Minister; sections 436, 400, 396). The State remits 40% of royalties to the Commonwealth (section 435).
Who decides: the Minister (State) is the principal decision‑maker for grants, conditions, securities, suspensions and cancellations; some Ministerial actions must be consulted on with other State Ministers and the responsible Commonwealth Minister (sections 38B, 387(3) and 30). The Supreme Court is the review forum for some register and caveat disputes (sections 351 and 354).
Behaviour changes: applicants will tailor applications to licence category (exploration, retention, mining, works or special purpose), budget for mandatory relinquishment on renewals, expect monitoring/inspection and data reporting obligations, and may contest Ministerial decisions via submissions or judicial review. Third parties can use caveats to delay transfers (Part 3.1 Subdivision B).
Implementation/administration risks and clarity issues
Heavy cross‑references to Commonwealth law and other State statutes (Environmental Protection Act, Mining Act transitional provisions, Native Title Act references) raise coordination and interpretation risk (see sections 3, 5A, 38A and Schedule 2).
Large areas of Ministerial discretion (conditions, securities, approvals, refunds) increase regulatory flexibility but also create uncertainty for commercial planning (see sections 118, 399, 365 and 426). The Act sets procedural protections (advertising, notice, opportunity to make submissions) but substantive outcomes often lie with the Minister.
The Act combines tenure, environmental controls, data confidentiality, a registration/caveat system and criminal penalties in one instrument. That concentration simplifies having a single statute but increases administrative complexity for operators who must meet multiple compliance regimes under one tool.
Key illustrative sections: 38 (prohibition without authorisation); 39 (licence types); 40 (steps to make licence effective); 104 (mandatory area reduction on renewal); 118/254/304 (types of licence conditions); 399–400 (securities); 429–435 (royalty and 40% payment to Commonwealth); 341–351 (caveats); 377–384 (inspection powers); 38A and 38B (marine reserves, consultation).
Division Div 5Voluntary surrender of part of exploration licence area