Industry Guideline for Mineral (non
coal) Explorers
A GUIDE TO APPLYING FOR EXPLORATION LICENCES FOR
GROUPS 1-8, 10 & 11 (NON COAL MINERALS)
1
Published by the Department of Industry, Skills and Regional Development, Division of Resources and Energy
Industry Guidelines: EXPLORATION LICENCES FOR GROUPS 1-8, 10 and 11 (NON COAL MINERALS)
First published July 2015
More information
Division of Resources and Energy, Titles Unit, Maitland
www.industry.nsw.gov.au www.resourcesandenergy.nsw.gov.au
Acknowledgments
Publication citation or credit for agencies outside Department of Industry, Skills and Regional Development that
have provided significant input to content or funding.
© State of NSW through the Department of Industry, Skills and Regional Development – Division of Resources and Energy (DRE) 2015.
This publication is copyright. You may download, display, print and reproduce this material in an unaltered form only (retaining this notice) for your
personal use or for non-commercial use within your organisation. To copy, adapt, publish, distribute or commercialise any of this publication you
will need to seek permission from the Department of Industry, Skills and Regional Development.
Disclaimer: The information contained in this publication is based on knowledge and understanding at the time of writing (July 2015). However,
because of advances in knowledge, users are reminded of the need to ensure that information upon which they rely is up to date and to check
currency of the information with the appropriate officer of the Department of Industry, Skills and Regional Development or the user’s independent
advisor.
[Additional disclaimers] While this document has been prepared with care it contains general information and does not profess to offer legal,
professional or commercial advice. The New South Wales Government accepts no liability for any external decisions or actions taken on the basis
of this document. Persons external to the New South Wales Government should satisfy themselves independently and by consulting their own
professional advisors before embarking on any proposed course of action
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Contents
1.
Introduction .............................................................................................................. 5
About this Guideline ............................................................................................................. 5
Who this Guideline applies to ............................................................................................... 5
NSW’s Mineral Resource Management .................................................................................. 6
2.
What is an exploration licence? ................................................................................. 6
Mineral Groups..................................................................................................................... 6
Exploration Areas ................................................................................................................. 7
Overlapping authorities .................................................................................................................. 7
Opal prospecting areas and reserves .............................................................................................. 7
Land reserved by other legislation.................................................................................................. 7
Term of an Exploration Licence.............................................................................................. 8
3.
Timeline of exploration licences ................................................................................. 8
4.
Types of exploration licences and who can apply ..................................................... 11
Standard exploration licences and low-impact exploration licences ..................................... 11
Mineral Allocation Areas ..................................................................................................... 12
Exploration (Mineral Owner) Licence ................................................................................. 133
5.
Before you apply ..................................................................................................... 13
6.
The Application ....................................................................................................... 13
Step 1: Applicant details...................................................................................................... 13
Step 2: Selecting an exploration area ................................................................................... 14
Area and shape of an exploration licence..................................................................................... 14
How to describe an exploration licences area .............................................................................. 14
How to locate available exploration application areas................................................................. 15
Step 3: Native Title.............................................................................................................. 16
Step 4: Work program ......................................................................................................... 16
Step 5: Financial capability .................................................................................................. 17
Step 6: Technical capability ................................................................................................. 17
Step 7: Compliance assessment ........................................................................................... 18
Step 8: Fees ........................................................................................................................ 18
Step 9: Lodging the Application ........................................................................................... 19
7.
Assessment and Determination Process ................................................................... 21
Assessment process ............................................................................................................ 21
Determination process ........................................................................................................ 21
8.
Fees and security deposits ..................................................................................... 234
9.
Obligations under an exploration licence ................................................................. 25
Standard conditions of exploration licences....................................................................... 245
3
Further approvals and consents .......................................................................................... 26
Land access arrangements and compensation ........................................................................... 256
Activity Approvals ....................................................................................................................... 267
Exempted areas ............................................................................................................................ 29
Native Title approvals ................................................................................................................... 29
Reporting ........................................................................................................................... 31
General.......................................................................................................................................... 31
Annual Activity Reporting ............................................................................................................. 31
10.
Renewing exploration licences............................................................................... 30
Renewing exploration licences ............................................................................................ 30
Term of renewals ................................................................................................................ 32
Area of renewals................................................................................................................. 32
Lodging a renewal application ............................................................................................. 31
Assessment and determination of a renewal application ..................................................... 33
11.
Transferring an exploration licence ........................................................................ 35
12.
Expiration and cancellation of an exploration licence ............................................. 35
Final reports ....................................................................................................................... 35
Refund of security deposits ................................................................................................. 36
Appendix 1
Operational codes and policies ................................................................ 37
Appendix 2
Low–Impact Exploration Licence activites ................................................ 39
Appendix 3
Legislative requirements......................................................................... 40
Appendix 4
Glossary of terms and definitions ............................................................ 45
4
1. Introduction
About this Guideline
This Guideline assists those interested in exploring and developing the State’s mineral
resources. It explains how the Act and exploration licences work, as well as outlining the
responsibilities of applicants and licence holders.
Specifically, it includes information on:
•
key features of exploration licences
•
how to prepare and lodge an exploration licence application
•
how an application for an exploration licence is assessed
•
key obligations of exploration licence holders
•
obligations of exploration licence holders upon the renewal, transfer and surrender of an
exploration licence.
This Guideline also includes references to DRE codes of practice, policies and guidelines.
A full list of the codes, policies and guidelines listed in this document is set out at Appendix
A.
From 1 July 2015, the NSW Government introduced reforms to the administration of all
exploration licences. These reforms include:





new work program requirements, that include providing information about the objectives
and expenditure estimates for environmental management, rehabilitation and community
consultation
a new standard exploration licence instrument that incorporates all rights and obligations
over the life of an exploration licence
streamlined, risk based standard conditions
enforceable risk-based codes of practice
consolidated annual reporting.
Later in 2015, simplified activity approval processes underpinned by new application
requirements will also be launched.
These new arrangements are set out within this Guideline.
Who this Guideline applies to
This Guideline applies to those interested in exploration licences for all minerals except coal
and oil shale. Information about exploration licences for coal and oil shale is provided in a
separate guideline.
Note: While this Guideline generally applies to exploration licences for uranium and thorium,
additional specific requirements apply to applications for these types of minerals, as listed on
the DRE website.
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NSW’s Mineral Resource Management
In New South Wales, the majority of mineral resources are owned by the State
(Crown), and any person (both companies and individuals) can seek approval from the
NSW Government to explore for and extract these resources. The commercial
development of these resources contributes substantially to the economy and provides
significant benefits to both the State and its residents, particularly in rural areas.
The Division of Resources and Energy at the NSW Department of Industry (DRE)
administers the allocation and management of these resources on behalf of the NSW
Government by issuing exploration licences, assessment leases and mining leases (known
collectively as ‘authorities’) under the Mining Act 1992 (the Act) and the Mining Regulation
2010.
The Act promotes the discovery and development of mineral resources in NSW, while
encouraging ecologically sustainable development.
2. What is an exploration licence?
An exploration licence gives the holder the right to carry out exploration (prospect) for:



particular minerals
in or on particular land (the ‘exploration area’)
for a particular period of time (term).
The purpose of exploration is to locate areas where mineral resources may be present,
to establish the quality and quantity of those resources, and to investigate the viability
of extracting the resource.
The granting of an exploration licence does not give any right to mine, nor does it
guarantee a mining lease will be granted within the exploration area. But it does give
the holder a competitive advantage by enabling it to obtain the information required to
apply for a mining lease if a viable resource is discovered.
Exploration licences are issued under Part 3 of the Act and Part 3 Division 1 of the
Regulation.
Mineral Groups
Exploration licences can be granted in NSW in respect of one or more ‘groups’ of minerals.
A summary of the groups is listed below. A full list of the minerals in each group is set out in
Schedule 2 of the Regulation.
Group 1
Metallic minerals
Group 7
Opal
Group 2
Non-metallic minerals
Group 8
Geothermal energy
Group 3
Semi-precious stones
Group 9 *
Coal and oil shale
Group 4
Marine aggregate
Group 10
Mineral sands
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Group 5
Clay minerals
Group 6
Corundum, diamond, ruby and
sapphire
Group 11
Uranium and thorium
* Group 9, Coal and oil shale, is subject to a separate guideline.
Exploration Areas
Exploration licences under the Act can be granted generally on any onshore land in
NSW, subject to some exceptions.
Overlapping authorities
Under section 19 of the Act, because exploration licences (and other authorities) are
intended to grant a holder the exclusive right to explore for a particular group of
minerals, an exploration licence cannot be granted over land that is already subject to
some other exploration licence or assessment lease (‘prospecting title’) covering the
same mineral group, or an application for a prospecting title for the same mineral
group. Further, because of the practicalities of mining, an exploration licence can’t be
granted over land already subject to a mining lease or mineral claim (which enables
mining in a specially designated ‘mineral claim’ district).
But if the holder (or applicant) for the overlapping authority gives their written consent
to the new exploration licence being granted, then it can be. In these circumstances,
the area of overlap will normally be removed from the pre-existing authority or
application.
Even if written consent of the overlapping authority holder/applicant is not given, the
licence can technically still be granted if the Minister is satisfied that the overlap is not
likely to make the exercise of rights under each authority impracticable, but this would
be extremely unlikely in most circumstances.
Opal prospecting areas and reserves
Section 18 of the Act prevents the grant of an exploration licence over:


an opal prospecting area
any reserve constituted under section 367 of the Act which prevents the grant
of exploration licences.
Land reserved by other legislation
Certain other legislation excludes the operation of the Act on some areas of land. This
means that exploration licences will not be granted over land:


vested in the Commonwealth of Australia
vested in or owned by an Aboriginal Land Council or Local Land Council under
the Aboriginal Land Rights Act 1983 before the licence was granted, because
those minerals don’t belong to the state of NSW. This does not apply to gold,
silver, coal or uranium, so exploration licences for Group 1, 9 and 11 minerals
will still include this land, but only give holders the right to explore for gold,
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
silver, coal or uranium (as relevant), and not any other minerals within the
group on that land
within any national park, regional park, historic site, nature reserve, karst
conservation reserve or Aboriginal area at the date of grant of the licence
(whether those areas are created under the National Parks and Wildlife Act
1974 or other legislation).
Term of an Exploration Licence
An exploration licence may be granted for a maximum term of six years. At the end of that
period, a licence holder can allow it to expire, or they can apply for renewal for further
periods not exceeding six years on any one occasion.
3. Timeline of exploration licences
The following flow diagram includes highlights recent reforms to exploration in NSW and how
they apply to exploration for minerals.
8
Note: the maximum exploration licence term is six years
9
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4. Types of exploration licences and who can apply
Who can apply for an exploration licence can depend on the type of exploration licence.
Generally, exploration licences can be granted to any person (including companies), except
individuals under the age of 18 years old. You can also jointly apply to hold an exploration
licence with another person. But some restrictions apply to exploration (mineral owner)
licences, and exploration licences within mineral allocation areas.
Standard exploration licences and low-impact exploration licences
Any person can apply for a standard exploration licence or low-impact licence.
But while standard exploration licences permit you to carry out any exploration activity, a
low-impact licence only authorises a limited range of exploration activities. A full list of these
activities is provided in Appendix 2.
The reason for the distinction is because standard exploration licences and low-impact
licences use different processes to protect Native Title in NSW.
Native Title
Native Title in Australia recognises and protects communal, group or individual rights and
interests of Aboriginal peoples or Torres Strait Islanders in relation to land or waters, under
the Commonwealth Native Title Act 1993 (CNTA). Mineral exploration in NSW must be
administered in accordance with the CNTA.
The primary effect of the CNTA on exploration is to ensure that Native Title parties are given
an opportunity to negotiate about the grant and some renewals of exploration licences. The
process whereby these rights are afforded is informally known as the “right to negotiate”
(RTN) process, and it has to be followed before a person is given the right to explore over
any land on which native title has not been extinguished (the “act”).
In summary the process involves:





notification and advertisement, to alert existing and potential native title parties
to the Government’s intention to do the proposed act;
negotiation between any registered native title claimants, the Government and
the applicant to seek agreement about the act;
mediation, where appropriate, by the arbitral body to assist in agreement being
reached;
where agreement cannot be reached, determination by the arbitral body as to
whether or not the act may proceed and under what conditions; and
overruling by the relevant Minister of the arbitral body’s determination if that
determination is considered not to be in the national interest.
Low-impact exploration licences
The RTN process does not have to be followed for low-impact exploration licences. Instead,
DRE must serve notices on certain Native Title parties that could be affected by a grant of a
low-impact exploration licence, at least four months before a low-impact exploration licence
can be granted.
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If a low-impact licence is granted, the holder will have to enter into an access arrangement
with any Native Title claimant in addition to relevant landholders. Access arrangements are
explained further in section 9 below.
If the holder of a low-impact exploration licence wants to carry out an activity not permitted
under low-impact exploration licences, they will have to apply to convert it to a standard
exploration licence. If the application is granted, the RTN provisions will apply as usual to
standard exploration licences.
Standard exploration licences
Standard exploration licences confer the right to carry out all exploration. However, as
mentioned above, the RTN process will need to be followed before the licence holder can
carry out any exploration activity on land where Native Title has not been extinguished.
An applicant for a standard exploration licence can elect to carry out the RTN process either:


before the licence is granted, or
after the licence is granted, if required.
If the first option is selected, the applicant will have to pay fees to cover advertising
costs associated with the RTN at the time it lodges its licence application.
If the applicant selects the latter option, then the exploration licence will be granted subject
to a condition which requires the licence holder to obtain the Minister’s consent before it
carries out any exploration activity on land where Native Title has not been extinguished.
Ministerial consent will only be granted after the RTN process has been followed. Fees
associated with the RTN process will be payable by the licence holder at the time it applies
for Ministerial consent. Unless a significant part of the proposed exploration area is land
where Native Title has not been extinguished, this option would generally be the most
appropriate.
It is recommended that applicants discuss these options with their legal advisor.
More information about Native Title is available on the DRE website.
Mineral Allocation Areas
Under section 13(3) of the Act, a person can only apply for an exploration licence for a
mineral in a mineral allocation area (MAA) if they have consent from the Minister to do so.
MAAs allow for the controlled and rational allocation of potential mineral and geothermal
development areas, and they can be established for any minerals or mineral groups.
All of NSW is an MAA for Groups 9 (coal and oil shale) and 11 (uranium and thorium)
minerals. Some smaller MAAs have been created throughout the State for other minerals.
Current MAAs in NSW can be viewed on NSW Titles.
It is strongly recommended that any person considering making a request for the Minister’s
consent to apply for an exploration licence within an MAA contact DRE’s Titles Unit for
advice. Requests for Ministerial consent must be accompanied by a diagram that clearly
shows the area over which the person wants to apply for an exploration licence, along with a
general overview of the proposed exploration activities.
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Exploration (Mineral Owner) Licence
Ownership of some minerals in certain land has not been transferred to the state of NSW.
Those minerals are still ‘privately owned’ by the owner of the relevant land. A person who
still owns the minerals in their land can apply for an exploration (mineral owner) licence if
they want to explore for those minerals.
Applications for an exploration (mineral owner) licence must include evidence establishing
that the applicant owns the relevant minerals (e.g. advice from an Australian legal
practitioner that certifies private ownership of the minerals).
5. Before you apply
It is strongly recommended that prospective applicants read the provisions of the Act and the
Regulation in conjunction with the information in this Guideline. The most relevant parts of
the Act are Parts 3, 8, 11, 12A, 13, and 14A. The Act and Regulation may be viewed on the
Parliamentary Counsel’s website.
6. The Application
You can apply for an exploration licence using the form relevant to your type of exploration
licence available on the DRE website. The form prompts you to provide all of the information
required under the Act to submit a valid application.
This section goes through the information the form asks you to provide in further detail.
Step 1: Applicant details
You must clearly indicate who will be the holder(s) of the licence will be if the application is
granted.
What you need to do:
Provide the applicant information specified within the application form. Applicants must also
indicate if they (or in the case of a company, their directors) have ever contravened the Act
or been convicted of any other offence relating to mining or minerals.
To ensure the application is processed in a timely manner, the applicant must include proof
of identity as follows:


a company – an up-to-date (no more than 30 days old) company extract from the
Australian Securities and Investments Commission (ASIC)
an individual – a verified copy of a current driver’s licence or alternative proof of
identification (see the fact sheet on the DRE website for guidance).
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What DRE will do:
Assess the information provided, including carrying out compliance and company checks.
Step 2: Selecting an exploration area
You must clearly indicate what land your application relates to (the proposed exploration
area).
Area and shape of an exploration licence
Applications for non-coal minerals must specify the proposed exploration area by reference
to a graticular system defined in Schedule 4 of the Regulations.
This system divides the State into a series of ‘blocks’ with dimensions of five minutes of
latitude by five minutes of longitude. Each block comprises 25 ‘units’ with dimensions of one
minute of latitude by one minute of longitude. Although the area of a unit varies slightly
depending on the location within the State, each unit is approximately three square
kilometres in area.
Applicants need to specify which units their application relates to. They can be of any shape,
and the units need not be contiguous.
But, if the application areas are separated by more than five units, the application may be
granted as separate exploration licences. Likewise, a single exploration licence can be
granted in satisfaction of two or more applications submitted by the same person.
Further, an exploration licence may be granted for only part of the land which was set out in
the application.
The Act does not limit the size of an exploration licence application. However, applications
will generally not be granted for more than 100 units unless the applicant can demonstrate
that the grant of an exploration licence of that size will promote effective discovery and
development of mineral resources, consistent with the Objects of the Act.
How to describe an exploration licences area
An exploration licence application area for non-coal minerals (groups other than group 9) is
selected by the graticular block and unit references identifying the land. The eight standard
1:1,000,000 maps which cover NSW are known as the ‘identification area’ and each
identification area contains 3456 blocks, which are numbered in sequence. Each block is
divided into 25 units, which are identified in alphabetical order (with the exception of the letter
‘i’).
The example below shows an exploration licence (highlighted in red hatching):


it is located within the Canberra (CAN) 1:1,000,000 identification area
it covers the blocks and units set out in the following table:
BLOCK
UNIT
1067
y
1139
d, j, o, t, x, y
1211
c, d, g, h, j, m, n, o
14
Example of blocks and units on the Canberra 1,000,000 identification area
In the case of an exploration (mineral owner) licence, the application area would be the lot
and deposited plan numbers of the land in which the mineral/s are owned by the applicant.
How to locate available exploration application areas
Much of the potential mineral-bearing areas of NSW are covered by existing exploration
licences and other authorities. Selecting a potential application area requires assessment of
the extent of current authorities, in order to select an area which is unallocated. Existing
authorities can be viewed and identified using the DRE application, NSW Titles Viewer or
MinView.
Online exploration licence applications can be accessed from MinView.
What you need to do
Describe the area you wish to apply over using the identification area name, block number
and list of units sought in the application. For example CAN 1067 unit ‘y’, etc.
When using the online application available within MinView, the units can be selected from
the graphics which are then automatically included in the application (instructions on how to
do this are available at the beginning of the web application).
What the DRE will do
As part of the assessment process, the proposed exploration area will be used to identify
existing conflicting authorities or applications, or areas that are not available in the proposed
15
exploration area. The applicant will be advised of any conflicts and will be requested to
supply consent from the holders of those authorities or competing applications. If such
consent cannot be supplied, the application will generally be considered for the available
area only.
For exploration licences granted in respect of applications for the grant, renewal or transfer
of an exploration licence submitted after 1 July 2015, the exploration area will be set out at
Schedule 1 of the licence document and reflected in an indicative diagram.
Step 3: Native Title
What you need to do
Select the class of licence required that will then determine what steps need to be taken
regarding Native Title (referred to in section 4 above).
What the DRE will do
Take appropriate action regarding Native Title, depending on the class of licence chosen.
Step 4: Work program
Applications for exploration licences must include a program of activities that a person
proposes to undertake if the licence is granted. This is known as the work program.
It must contain a description of the objectives and rationale for the proposed exploration, the
nature, extent and anticipated cost of proposed exploration activities, and the environmental
management, rehabilitation activities and community consultation that will be carried out by
the applicant.
The Exploration Guideline: Work Programs for Prospecting Titles, available on the
Department’s website, contains detailed information about how to prepare a work program,
and how the work program will be assessed. The Guideline includes a link to a template that
applicants should use to prepare and submit the work program.
If the exploration licence is granted, a condition of that licence will require the licence holder
to carry out the approved work program (as may be varied from time to time, with the
approval of the Minister).
What you need to do
Prepare and submit your proposed work program in accordance with the Exploration
Guideline: Work Programs for Prospecting Titles.
The proposed work program submitted with the application should be appropriate to the term
being sought. For example, a request for a three year term should be reflected in a work
program with sufficient exploration, appropriately staged, to warrant a three year term being
granted.
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What the DRE will do
An integrated team within the DRE that includes suitably qualified geologists, environmental
scientists and community liaison officers will assess the proposed activities in a work
program, and determine whether it is an appropriate program of work for the term sought,
having regard to the current state of geological knowledge within the proposed exploration
area.1
Step 5: Financial capability
An applicant will only be granted an exploration licence if it is considered that it is financially
capable to carry out the activities proposed in the work program.
What you need to do
Provide particulars of your financial resources in the form of an Evidence of Financial
Standing form issued by a member of CPA Australia or the Institute of Chartered
Accountants in Australia. This must demonstrate that the applicant has sufficient financial
resources, or access to the financial resources required to carry out the proposed work
programs.
What the DRE will do
The DRE will assess the information provided to ensure that the applicant has adequate
financial capacity to carry out the proposed work program for the first year. It will also take
into consideration other financial commitments in relation to work programs on all the
applicant's authorities and applications within the State.
Step 6: Technical capability
Applicants must supply evidence of technical capability to demonstrate that the applicant
has, or has access to, the technical capabilities required to effectively carry out the proposed
work program. All nominated exploration technical managers will be required to confirm their
acceptance of the role.
What you need to do
List details of persons or organisations providing technical advice (including regarding
environmental management and rehabilitation), together with the name and contact details
of a person who will be responsible for the supervision of prospecting operations and
preparation of exploration reports (technical manager). The qualifications and experience of
the technical manager must be supplied.
1
For exploration licences granted in respect of applications for the grant, renewal or transfer of an exploration licence submitted after 1
July 2015, the approved work program will be attached as Schedule 5 of the licence document. Confidentiality of that document will be
maintained as required under clause 58 of the Regulation. An example exploration licence for minerals is available on the DRE website.
17
It is expected that the technical manager will be a qualified geoscientist with mineral
exploration experience, or a person with appropriate industry experience.
What the DRE will do
The DRE will assess the information provided to ensure that the applicant has sufficient and
appropriate technical resources to conduct the exploration specified in the work program.
Step 7: Compliance assessment
The DRE will consider whether there is any reason why it may not be desirable to grant the
application for any reason, including in accordance with provisions detailed in section 380A
of the Act.
To expedite this process, applicants, or other Directors of a company, can note on the
application form that they give permission for the DRE to collect personal information about
them.
While it is not a requirement under the Act that individuals/Directors/Officers give this
permission, delays may occur in processing the application if permissions are not granted.
The relevant form can be downloaded from WEBLINK.
Step 8: Fees
Applications for exploration licences must be accompanied by the relevant fee.
If the fee is not paid upon lodgement, the applicant must provide information that enables
immediate payment or payment confirmation (such as electronic funds transfer details, credit
card details or a cheque). If payment fails, the application may be refused due to noncompliance with section 13(4)(c) of the Act.
The prescribed fees are contained in Schedule 10 of the Regulation. The current application
fee is calculated as follows:
$1,000 + $12.50 x (number of units applied for, multiplied by number of years applied for).
If more than one mineral group has been applied for, add the following for each additional
group:
$6.25 x (number of units applied for multiplied by number of years applied for).
Form-based applications provide guidance to manually calculate the required fee to be paid
on lodgement with the application form. Online forms automatically calculate the fee to be
paid during the application process.
What you need to do
Pay the prescribed application fees. The fee may be paid by credit card, electronic funds
transfer, company cheque or cash.
What the DRE will do
Confirm the payment has been received or receipt of the fee during the application
acceptance process.
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Step 9: Lodging the Application
The requirements regarding the lodgement of applications for exploration licences are set
out in sections 13 and 382 of the Act, and clauses 14 and 76 and Schedule 10 of the
Regulation.
What you need to do
If lodging an application online, make sure you have completed the application form, provide
all the required information as prompted by the fields in the form, and pay the application fee
(or provide information for payment).
If lodging an application using the hard copy application form, complete the form in
accordance with the instructions on the form, and provide all the required information as
prompted by the fields in the form, and payment of the application fee.
It is the responsibility of the applicant to ensure the application form is correctly completed
and all required information is provided. If you don’t provide all the required accompanying
information when you submit the application, you have 10 working days to do so, or the
application may be refused.
However, if another complete application is received in relation to the same mineral group
over the same land as your application before you submit your required information, the
complete application will take priority.
Form-based applications may be lodged by email, fax, mailed to one of the DRE offices
listed below, or lodged in person during business hours (8:30am – 4:30pm).
Head Office:
516 High Street
MAITLAND NSW 2320
(PO Box 344, HUNTER REGION MAIL CENTRE NSW 2310)
Phone:
Fax:
Email:
1300 736 122
(02) 4931 6776
Attention: Titles Unit
[email protected]
Regional Office:
Orange:
161 Kite Street
Locked Bag 21, ORANGE NSW 2800
As an applicant, you are also obliged to ensure all information provided to the DRE is true
and correct. Otherwise you may leave yourself liable to prosecution for providing false and
misleading information under the provisions of the Act.
19
What the DRE will do
Send a letter acknowledging receipt of an application, and specify if there is any outstanding
information. If the required information is not provided within the 10 working days, the DRE
may send a reminder to the applicant, or the application may be refused in accordance with
clause 76(9) of the Regulation.
There are a few differences in processing online and paper applications. These are set out in
the table below.
Difference in process in relation to Online (MinView) and Paper application
Online application
Paper application
The application form and area can be selected
using the MinView online application on the
DRE’s website. The fees are calculated and paid
online.
The form can be completed and lodged by:
post – receipt time will be recorded as 9:30am on
the day of receipt
email – receipt time is the time date stamped on
the email
fax – receipt time is the time that the last page of
the fax is received (time and date stamp is
automatically added to incoming faxes).
The fees must be lodged with the application
form.
A report of possible conflicts can be obtained
from the MinView system prior to lodging the
application.
Applicants may use MinView to check availability
of the area.
An online application is automatically entered
directly into the Titles Administration System
(TAS) and GIS system.
The application is manually receipted and entered
into the Titles Administration System by DRE
staff.
An email acknowledgement is sent to the
applicant at the time of lodgement.
An acknowledgement is sent to the applicant by
the DRE staff.
Accompanying information required for the
application should be attached to the
acknowledgement email and forwarded to the
DRE.
Accompanying information not lodged with the
application form should be received by the DRE
within 10 business days of the application being
lodged.
This information should be provided within 10
business days of the receipt of acknowledgement
of lodging the application.
The application will be assessed in the normal
manner to meet the DRE’s key performance
indicator timeframes.
The application will be assessed in the normal
manner to meet the DRE’s key performance
indicator timeframes.
The DRE will then progress assessment and determination of the application. This process
is described in section 7 below.
20
7. Assessment and Determination Process
Assessment process
Once the application has been registered and checked, it will be assessed as follows:

the application and accompanying material is assessed by the technical units within DRE
(the Geological Survey and Compliance and Enforcement, which includes the
Environmental Sustainability Unit). After assessment, the technical units provide
recommendations on the application to the Titles Recommendation Committee (TRC)

the TRC considers the application and makes a recommendation to the delegated
decision maker

the delegated decision maker considers the TRC’s recommendation and all relevant
information. The decision maker may propose to grant or refuse the application.
Determination process
Proposed grant of an application
If the decision maker proposes to grant the application for an exploration licence, DRE will
send a letter to the applicant to notify them of the proposed grant. The letter will:



include a copy of the proposed licence and the proposed conditions
invite the applicant to make any submissions about the proposed decision before it is
granted (including any objection to the proposed conditions)
ask the applicant to pay the required security and licence fees (see section 8 below),
which must be paid before the licence can be granted.
The applicant has 14 days to make any submissions in relation to the licence and conditions
and 42 days to lodge the security and other fees. Any submissions will be considered by the
decision maker before the final decision is made.
If the applicant does not want the licence to be granted on the final terms proposed by the
decision maker, it may withdraw its application. Otherwise, the decision maker will grant the
application.
Proposed refusal of an application
If the decision maker proposes to refuse the application for an exploration licence, DRE will
send a letter to the applicant to notify it of the proposed refusal and give the applicant 14
days to make any submissions regarding the proposed decision.
The decision maker will consider any submissions made by the applicant before making a
final decision (and may refer the application back to the TRC for further advice, if required).
A flowchart of the process is set out below.
21
22
8. Fees and security deposits
Rehabilitation security deposit
All exploration licences are issued subject to a condition requiring the payment of a security
deposit, to ensure that the state of NSW has funds to cover the cost of any default by the
licence holder (primarily, defaults in respect of environmental works).
This security deposit has to be paid by an applicant before an exploration licence is granted,
and will be refunded once the exploration licence is cancelled or expired and all obligations
have been met (see further section 12 below).
The minimum security deposit for an exploration licence is $10,000. The amount of the
security may vary during the term of the exploration licence depending on the activities
which are being carried out by the licence holder.
Annual rental and administrative levy
Part 14A Divisions 3 and 4 of the Act require exploration licence holders to pay an annual
rental fee and an administrative levy.
The annual rental fee is calculated based on the area of the licence. Funds raised from the
rental fee are used to continue the provision of pre-competitive geoscience information to
industry and other stakeholders. Information, such as new geophysical, geochemical and
mapping data, is funded from this fee. This fee is calculated in accordance with Schedule 10
of the Regulation. $100 is the minimum annual rental fee required to be paid.
The annual administrative levy is currently set at 1% of the required security deposit, with
$100 as the minimum amount. Funds collected under the administrative levy are to be used
to cover the DRE’s administrative costs and the Derelict Mine Sites Fund.
More information in relation to the rent and levy is available on the DRE website.
The annual fee and administrative levy for the first year of an exploration licence must be
paid before the exploration licence is granted. Subsequent payments must be made each
year on the anniversary of the grant.
Failure to pay the rent or levy is a contravention of the Act, but is not an offence under the
Act. Contraventions can be taken into account when decisions about the grant or renewal of
a title are made, and in extreme circumstances, can lead to cancellation of an exploration
licence.
23
9. Obligations under an exploration licence
This section of the Guideline sets out some of the key obligations you will have if you are
granted an exploration licence. As a holder of an exploration licence you are responsible to
ensure ALL obligations are complied with, including, but not limited to, requirements of:



the Mining Act 1992 and all other relevant legislation
all conditions of your exploration licence, including those of any activity approvals
the Exploration Codes of Practice referred to in the conditions of your exploration
licence (as relevant to an activity).
Standard conditions of exploration licences
All exploration licences will be subject to certain standard conditions.
These standard conditions are set out in Schedule 2 of an exploration licence and apply to
all activities carried out under an exploration licence. The standard conditions have been
revised and new standard conditions will apply to all exploration licences granted, renewed
or transferred in respect of applications received after 1 July 2015.
Additional special conditions may be imposed on a case-by-case basis, to regulate specific
risks that in relation to a particular application (for example, due to certain sensitivities of
land within the exploration area).
Further conditions may apply to regulate specific activities only. These will be set out in
Schedule 3 of an exploration licence.
The standard conditions will require the licence holder to comply with the Exploration Code
of Practice: Rehabilitation. That Code imposes a number of obligations to ensure that any
surface is effectively rehabilitated, including to submit rehabilitation objectives and
completion criteria to the Secretary prior to carrying out surface disturbing activities.
Additional conditions which may apply to particular exploration activities, may require
compliance with various Codes of Practice and refer to various guidelines (see Appendix 1
for a full list of these documents).
Both the Act and standard conditions require the licence holder to obtain further approvals
from certain persons before carrying out particular activities. These are explained below.
Licence holders should note that the contravention of licence conditions is an offence, and
also constitutes grounds for suspension and cancellation of an exploration licence (in
addition to a consideration in determining applications for the renewal of an existing licence,
or grant of a new authority). Information about compliance and enforcement, including links
to the DRE compliance and enforcement policy is available on the DRE’s website.
24
Further approvals and consents
At some stage during the term of an exploration licence, all licence holders will probably
have to obtain further approvals in the form of:


access arrangements, agreed with relevant landholders to obtain access to land
activity approvals, issued by the Minister to carry out most surface disturbing works.
Depending on the nature of the land on which the licence holder wants to conduct
exploration, it may also need to obtain additional Ministerial consents to carry out
exploration:


on land where Native Title has not been extinguished2
within ‘exempted areas’.
Further approvals which are issued by the Minister or Department during the term of an
exploration licence, and after 1 July 2015, will be set out at Schedule 4 of an exploration
licence.3.
Land access arrangements and compensation
Exploration licence holders must obtain written permission to enter land from relevant
landholders in the form of an access arrangement, before carrying out any exploration
activities on their land. This may include land subject to Native Title for low-impact
exploration licences.
Under section 263 of the Act, landholders on any land, whether directly subject to an
exploration licence or not, are entitled to compensation for any compensable loss arising or
likely to arise as a result of activities on the licence. Compensable loss is defined in section
262 of the Act.
Compensation is one of the matters that should be addressed in an access arrangement. An
access arrangement can also include provisions regarding (but not limited to):
• when, how and where the licence holder will be permitted access to land
• kinds of exploration activities that can be carried out
• conditions to be observed
• manner for resolving disputes
• manner for varying the arrangement
• process of notification if ownership of land changes.
Applicants may commence the process of obtaining access arrangements prior to the grant
of an exploration licence. If agreement cannot be reached between the licence holder and
any landholder, an access arrangement can be determined by an arbitrator.
2
3
This will only be required if the RTN process applies and has not already been complied with, as described in section 4 above.
This excludes access arrangements, as these are not approvals issued by the Minister or the Department.
25
More details regarding access arrangements and arbitration are set out in Part 8 Division 2
of the Act, and an access arrangement template and information package is available on the
DRE website.
Activity Approvals
Exploration licence conditions require licence holders to obtain a further approval, commonly
known as an ‘activity approval’, before carrying out any exploration activity that is going to
have more than a minimal environmental impact.
Activity approvals are required to ensure compliance with the environmental assessment
requirements under Part 5 of the Environmental Planning and Assessment Act 1979.
Operations requiring further approval
Exploration licences issued in respect of applications lodged prior to 1 July 2015 permit
licence holders to carry out ‘Category 1 prospecting operations’ without further approval but
require an activity approval before carrying out any ‘Category 2 prospecting operation’ or
‘Category 3 prospecting operation’. The types of exploration activities which are classified as
Category 1, 2 or 3 prospecting operations are detailed in the relevant licence conditions.
Exploration licences issued in respect of applications for the grant, renewal or transfer
lodged after 1 July 2015 permit ‘exempt prospecting operations’, but require an activity
approval before carrying out an ‘assessable prospecting operation’.
Exempt Prospecting Operations
Exempt prospecting operations are any operations classified as ‘exempt development’ under
the State Environmental Planning Policy (Mining, Petroleum Production and Extractive
Industries) 2007 (Mining SEPP). The Mining SEPP provides that certain low intensity
exploration activities are exempt development if they are of minimal environmental impact.
These activities include:




geological mapping and airborne surveying
sampling and coring using hand-held equipment
geophysical (but not seismic) surveying and downhole logging
accessing areas by vehicle that does not involve the construction of an access
way such as a track or road.
These activities are exempt development (and can be undertaken without an activity
approval) provided that they are on land that:


is not within an environmentally sensitive area of State significance, or
is within a state conservation area but is not otherwise on land referred to in section 3
of the Mining SEPP as being environmentally sensitive area of State significance.
Assessable Prospecting Operations
Assessable prospecting operations include all other exploration activities which don’t qualify
as exempt prospecting operations (exempt development).
Note: DRE will launch a new streamlined process for the assessment and determination of activity
approvals later this year. This is described below. Until those reforms commence, licence holders can apply
for an activity approval by submitting a completed Surface Disturbance Notice available on the DRE
website, and, for activities which have a higher environmental impact, a Review of Environmental Factors
prepared in accordance with the ESG2: Guideline for preparing a REF available on the DRE website.
26
Applying for an activity approval
Licence holders can apply for an activity approval via DRE’s application form (Application
Form). The Application Form asks specific questions about the proposed activity and the
answers identify the level of assessment which will be required to determine the application.
The Application Form also identifies any additional supporting information must be submitted
to satisfy relevant statutory requirements.4
Assessing applications for activity approval
Common Exploration Activities
In order to streamline the assessment process, a subset of exploration activities requiring
approval (i.e. category 2, category 3 and assessable prospecting operations) have been
identified as being unlikely to have a significant environmental impact if carried out in a
particular manner. A streamlined assessment pathway has been developed for these
activities, referred to as Common Exploration Activities (CEAs).
Activities can be assessed under the streamlined CEAs Assessment Pathway if they:
1. satisfy location requirements set out in EDG5: Assessment Requirements for
Exploration Activities
2. satisfy the impact thresholds and criteria set out in EDG5: Assessment Requirements
for Exploration Activities
3. can be carried out in accordance with:
a. for Category 2 and 3 prospecting operations, the conditions of the relevant
exploration licence
b. for assessable prospecting operations, any applicable Codes of Practice (see
further below).
Non-Common Exploration Activities
Applications to undertake exploration activities which do not meet the CEA criteria must be
accompanied by additional information about the potential environmental impacts of the
activity, in order to assess and determine the application.
For more information about obtaining activity approvals, see ESG5: Guideline for the
Assessment and Determination of Exploration Activities, available on the DRE’s website.
The application and assessment process for exploration activities is summarised below and
in the following flowchart.
4
For the purposes of conditions of exploration licences which refer to Category 1, 2 and 3 prospecting operations, the DRE’s
Application Form constitutes a Surface Disturbance Notice (SDN) for the notification of exploration activities.
27
28
Determining applications for activity approval
If an activity approval is granted, additional exploration licence conditions will be imposed to
regulate those specific activities.
For category 2 or 3 prospecting operations, this will generally be a condition requiring the
licence holder to carry out the activity in the same manner specified in the application for
approval. Existing licence applications will also apply to those operations.
For assessable prospecting operations, the additional conditions will be imposed on
Schedule 3 of the exploration licence. Generally, these will require the licence holder to carry
out activities as described in the application, as well as compliance with relevant Codes of
Practice.
These may include the following:


Exploration Code of Practice: Environmental Management (July 2015, Department of
Industry). This will be applied to all exploration activities, and requires the licence
holder to carry out exploration in a manner which manages and minimises risks to
the environment.
Exploration and Production Code of Practice: Produced Water Management, Storage
and Transfer (July 2015, Department of Industry). This Code will only be applied if an
exploration activity is likely to require the management of produced water.
A Code of Practice in respect of drilling is currently under development, and may also apply
to assessable prospecting operations which involve drilling.
Exempted areas
Section 30 of the Act requires an exploration licence holder to obtain Ministerial consent
prior to carrying out exploration on any ‘exempted areas’. Exempted areas are certain lands
set aside for public purposes. They include travelling stock routes, road reserves, water
supply reserves, state forests, and public reserves/commons.
Information about applying for consent to explore within an exempted area is available on
the DRE’s website.
Native Title approvals
Information about applying for consent to explore on land where Native Title has not been
extinguished is available on the DRE’s website.
Reporting
General
The conditions of exploration licences and various provisions of the Regulation require
exploration licence holders to provide various reports about the activities carried out under
an exploration licence.
The standard conditions of exploration licences issued in respect of applications for the
grant, renewal or transfer of an exploration licence issued after 1 July 2015 requires annual
29
activity reports to be provided through a single mechanism and at a common timeframe, for
each year during the term of a licence.
Separate reports may also be required under the Act and Regulation to support applications
for the transfer, renewal, or part cancellation of an exploration licence, as well as in
conjunction with the expiry of an exploration licence.
Annual Activity Reporting
Annual activity reports bring together the compulsory reporting required under an exploration
licence.
Annual activity reports contain information, data and descriptions of all the activities
undertaken, for the term covered by the reports and require the submission of:
1. Annual Summary Activity and Expenditure Table
2. Annual Exploration Report
3. Annual Environment Management and Rehabilitation Report.5
The reports are due each year within 30 days following the grant anniversary date of a
licence or on any other date or dates directed by the Minister in writing.
Information about reporting generally is available on the DRE website.
For more information about activity reporting, including template information, see Exploration
Guideline: Annual Activity Reporting for Exploration Licences (July 2015, Department of
Industry).
Information about how compliance with the work program will be assessed via the activity
reports is also available in the Exploration Guideline: Work programs for prospecting titles
(July 2015, Department of Industry).
10. Renewing exploration licences
Renewing exploration licences
Exploration licences are only valid for a set term. If the holder of an exploration licence
holder wishes to continue exploration work at the end of that term, they must apply to renew
the licence before it expires.
An application for renewal can be made within the two month period prior to expiry, and in
any event, has to be lodged before the licence expires.
If a valid renewal application has been lodged prior to the expiry date and a decision has not
been made by that date, under section 117 of the Act, the exploration licence remains in
5
Coal and petroleum exploration licences also require submission of an annual Community Consultation Report. These may also be
required for mineral exploration licences in the future, pending development of a Code of Practice for Community Consultation.
30
force until the application for renewal is determined. This means prospecting activities may
continue within the area over which the renewal application was made.
If a mineral resource has been identified, the holder may wish to maintain a more substantial
form of tenure over the area. In this situation, it may be appropriate to apply for an
assessment or mining lease. Licence holders are strongly encouraged to seek advice from
the Industry Coordination and Royalty Unit within DRE prior to applying to renew the licence
in these circumstances. Fact sheets on assessment leases are available.
Holders intending to apply for the renewal of an exploration licence are strongly advised to
read the provisions of the Act and Regulation in conjunction with this information. The most
relevant parts are Division 1 Part 7 of the Act and clause 18 of the Regulation.
Renewal Reminders
An exploration licence holder can arrange to be sent an alert regarding the pending expiry of
the licence. Registered users of MinView are able to activate email reminders. Instructions
on setting up the reminder service are found on pages 27 and 28 of the Min View Users and
Help Guide.
Term of renewals
Exploration licences may be renewed for periods of up to six years. However independent
legal advice should be sought if the original grant term was for a period of less than six
years. If a renewal is granted, the decision maker has a wide power to grant it for a term
longer or shorter than that applied for, but it will give the applicant an opportunity to provide
submissions about that proposed decision.
Area of renewals
In accordance with section 114(6) of the Act, an exploration licence may not be renewed for
more than half the area, unless ‘special circumstances’ exist.
Therefore, an application for renewal over more than half of the existing exploration area
must be accompanied by a detailed submission to support the renewal, based on the
following criteria:
 the conditions of the licence have been satisfactorily complied with

the full area of the licence has been explored effectively

the proposed program satisfactorily covers the full area to be renewed.
Lodging a renewal application
Renewal applications can be lodged electronically, or in hardcopy form.
What you need to do
Complete and submit Form EL5, together with the required fee and supporting material.
Detailed instructions are provided on the form. The supporting material required to
accompany renewal applications includes:
 a description of the area over which renewal is sought
31
 relinquishment reports on areas of land no longer required
 a Renewal Justification Statement. If the licence holder is seeking renewal over more
than half of the licence area, this must include information about why the licence holder
thinks that special circumstances apply to the renewal
 a Rehabilitation Cost Estimate (RCE) outlining the outstanding rehabilitation costs of the
exploration area

for the renewal of licences granted in respect of applications lodged after 1 July 2015, all
reports in accordance with Exploration Guideline: Annual Activity Reporting for
Prospecting Titles (July 2015, Department of Industry).
What the DRE will do
Once a renewal application has been received, the DRE will send a letter to the licence
holder acknowledging receipt of an application, and specify if there is any outstanding
information.
If the required information is not provided within the 10 working days, the DRE may send a
reminder to the applicant, or the application may be refused in accordance with clause 76(9)
of the Regulation.
Assessment and determination of a renewal application
The assessment process for a renewal application is the same as the assessment process
for an original application (see section 7 above). The current policy on renewal of exploration
licences is available at on the DRE’s website.6
However, if the decision maker proposes to renew an exploration licence for a smaller area
or shorter term than that applied for, the applicant will be notified of the proposed decision,
and be given 14 days to make a submission regarding the proposed decision. It will also be
asked to provide a description of the reduced area to be retained before the DRE will renew
the exploration licence.
A flowchart of the assessment and determination process for renewal applications is set out
below.
6
This policy is currently under review.
32
33
11. Transferring an exploration licence
Exploration licences can be transferred to another person (or persons) with consent from the
Minister. They can be transferred wholly, or in part. The process for a transfer is as follows:



Lodge form AD2 electronically, or in hard copy. The form must be accompanied by the
required information and relevant fees
The decision-maker will assess and determine the application
If the application is granted, then the transferor or transferee has three (3) months to
apply to register that transfer by lodging form AD4 electronically, or in hard copy. The
transferee will only become the holder of the exploration licence when the transfer is
registered.
Detailed provisions regarding the transfer of an exploration licence are set out at Division 2
of Part 7 of the Act.
12. Surrender of an exploration licence
An exploration may come to end over the whole or part of an exploration licence in several
ways, including:




over the whole of an exploration area, because the term of the licence expires, and
the licence holder does not seek renewal within the required time frame
over part of an exploration licence area, because the licence is not renewed in
respect of a certain area
the licence holder requests cancellation of the licence, in whole or in part (see further
section 125(2) of the Act)
the Minister decides to cancel the licence, in whole or in part (see further Division 3
Part 7 of the Act).
When an exploration licence comes to end, a licence holder will have some final obligations
that it must comply with.
Final reports
Clause 57 of the Regulation requires licence holders to submit:


a final report within 30 days of the cancellation or expiry of a licence
a partial relinquishment report within 30 days after a notice of the partial cancellation
(or partial renewal) is published in the Gazette.
More information about final reports, and how to prepare them, is available on the DRE
website.
34
Refund of security deposits
Security deposits will only be refunded if the Minister is satisfied obligations under the
exploration licence have been fulfilled, and in particular, rehabilitation of any disturbed areas
has been successfully completed.
This requires licence holders to demonstrate to DRE that rehabilitation objectives and
completion criteria associated with the agreed land use have been met. As part of the
decision making process, the Minister will take into account whether the licence holder has
completed rehabilitation to the satisfaction of the landholder.
Licence holders should provide this information within 30 days of the expiry or cancellation of
the licence by submitting an Exploration Licence Rehabilitation and Relinquishment Report,
available on the DRE website. Failure to provide compete all reports may delay the release
of a security deposit.
The DRE will advise the licence holder if there is a requirement for additional information or
rehabilitation to be undertaken. The security deposit will not be released until rehabilitation
has been carried out to the satisfaction of the Minister. Failure to undertake the required
rehabilitation may result in the security being forfeited to fund any outstanding rehabilitation
works.
Once all final reports have been provided and assessed as satisfactory, the Department will
refund the security deposit. Requests for cash deposits to be released will be made within 10
business days of approval to release the security being given.7
7
Note: Once a request for release of a security is made to the Department’s Finance section, the timing of the release of the security is
outside DRE’s control.
35
Appendix 1
Operational codes and policies
Codes, Policies and Guidelines
Codes of Practice (codes), policies and guidelines provide information and set out
requirements, including the performance expectations to be achieved during the term of an
exploration licence. The application of these codes, policies and guidelines is based on the
likely risk, type, and scale, phase and duration of exploration activities.
Codes are enforceable and mandatory.
Codes
Codes set out mandatory requirements and provide licence holders with related guidance
regarding the expected performance to ensure that any exploration manages and minimises
risks.
Codes serve three purposes:
1.
they provide upfront information to applicants, licence holders and the public
2.
they can be used to facilitate the assessment and determination of exploration
activities consistent with Part 5 of the Environmental Planning and Assessment Act
1979 (hyperlink to activity approval guideline)
3.
they set out enforceable mandatory requirements.
The Codes that are likely to routinely apply to exploration licences for minerals include:
•
Exploration Code of Practice - Environmental Management
•
Exploration Code of Practice - Rehabilitation
Other Codes of Practice which are unlikely to be routinely applied to exploration licences for
minerals include:
•
Exploration Code of Practice – Produced Water Management, Storage and
Transfer
Separate Codes of Practice are also under development for drilling, community consultation
and fracture stimulation (although the latter is unlikely to be applicable to mineral exploration
licences).
Policies
Policies are formal statements of the position of the department on key aspects of its
business. They are governing principles that mandate or constrain actions and provide a
basis for decision-making and departmental actions to achieve Government objectives.
36
Policies may be developed to respond to legal or regulatory requirements; resolve a conflict
or problem; or realise an overall benefit to the Department. The DRE’s key policies include:
•
Compliance and Enforcement Policy
•
Policy on renewal of exploration licences for minerals
•
EDP11: Rehabilitation Security Deposit Policy
•
EDP10: Public Access to Environmental Information Policy
•
Policy on grant of assessment leases
Guidelines
Guidelines provide licence holders with information to assist them to fulfill their obligations
under the Act. The DRE’s Key guidelines include:
•
Exploration Guideline: Annual Activity Reporting for Prospecting Titles
•
Exploration reporting: a guide for reporting on exploration and prospecting in NSW
•
Exploration Guideline: Work Programs for prospecting titles
•
ESG1: Rehabilitation Cost Estimate Guideline
•
ESG2: Environmental Impact Assessment Guideline
•
ESG5: Assessment Requirements for Exploration Activities8
•
EDG13: Exploration Licence Rehabilitation and Relinquishment Report
8
This Guideline describes the revised activity approval assessment process, to be launched later this year.
37
Appendix 2
Low–Impact Exploration Licence activities
The following kinds of prospecting operations are authorised by a low-impact exploration
licence:(a)
aerial surveys
(b)
geological and surveying field work that does not involve clearing (as defined below)
(c)
sampling by hand methods
(d)
ground-based geophysical surveys that do not involve clearing
(e)
drilling and activities associated with drilling and the establishment of a drill site that
do not involve clearing or excavation (as defined below), other than the minimum
necessary to establish a drill site
(f)
environmental field work that does not involve clearing.
For the purposes of (e) above, the following are not permitted:




side hill excavation for access or drill pads, as would be necessary on steep slopes
drilling in a watercourse or any stream diversion
cutting down or pushing over trees
clearing or excavation for the purpose of obtaining access to drill sites.
The terms ‘clearing’, ‘excavation’ and ‘topsoil horizon’ have the following meanings:
Clearing
1. In the case of grass, scrub or bush, ‘clearing’ means the removal of vegetation by
disturbing root systems and exposing underlying soil, but does not include:
 the flattening or compaction of vegetation by vehicles, where the vegetation remains
living
 the slashing or mowing of vegetation to facilitate access tracks, provided root
systems remain in place and vegetation remains living
 the clearing of noxious or introduced plant species.
2. In the case of trees, ‘clearing’ means cutting down, ringbarking or pushing over trees.
Excavation
‘Excavation’ means the use of machinery to dig below the ‘topsoil horizon’, but does not
include:


minor levelling of a site to allow a drill rig to operate on a level surface for safety
reasons, e.g. to provide a safe working area or for fire prevention
the construction of a small sump for operational purposes.
Topsoil horizon
The ‘topsoil horizon’ means the top level or layer of soil which is generally less than 30cm
thick.
Note: Notwithstanding the kinds of prospecting operations authorised under (e) above,
further activity approval will be required before actual drilling can occur.
38
Appendix 3
Legislative requirements
The table below lists the provisions of the Mining Act 1992 (Act) and Mining Regulation 2010
(Regulation) that are relevant to exploration licences for minerals. It also shows the general
responsibilities for applicants, licence holders and the DRE for each of the provisions.
Note: The table only provides a very general overview of the key requirements of the Act and
Regulation. It is the obligation of the exploration licence holders or applicants to understand
their detailed obligations under the legislation and it is recommended that they obtain
independent legal advice.
Application, Assessment and Determination
Section of
Applicant responsibilities
the Act
13
Apply for an exploration licence
using the approved form and provide
all of the information set out in
section 13 of the Act and clause 14
of the Regulation.
13A
Publish a notice of your application
within 45 days after you receive a
letter from the Secretary of the DRE
acknowledging that your application
has been lodged (see also clause 15
of the Regulation).
14
15
16
17
18
19
The notice must:
- be published in a newspaper with
State-wide circulation, as well as in
at least one newspaper with
circulation in the locality of the
proposed exploration area
- comply with the guidelines
available on the DRE website.
No action required.
Ensure that your application in
response to an invitation for tender
meets the minimum requirements.
Supply any information the decision
maker may request, including about
interstate or foreign companies or
residents.
Comply with any order to remove
land from an application or tender for
an exploration licence.
No action required.
Obtain written consent to the grant of
your exploration licence from any
person who has a conflicting
authority, or conflicting application,
over land that is in your application.
39
DRE responsibilities
Assess applications for completeness
and send an acknowledgement letter to
the applicant stating if any details are
missing.
Check that the notices are published in
accordance with the guidelines and in
the required timeframe.
Comply with the requirements set out in
this section of the Act before putting an
exploration area out for tender.
Request any further information needed
to determine an application, and assess
that information.
Direct (by order) that an area be
removed from an application or tender
for an exploration licence.
Do not grant an exploration licence over
any land in an opal prospecting area or
reserve where new exploration licences
are prohibited.
Do not grant an exploration licence over
land subject to a conflicting authority, or
a conflicting application without the
written consent of that holder /
applicant.
Section of
the Act
Applicant responsibilities
DRE responsibilities
21
No action required.
22 and 23
Review the proposed conditions set
out in the letter from the DRE and
advise if there are any concerns by
the date nominated in the letter.
292I and
292K
261BA
If the proposed decision is to grant
the application, pay the required fees
and security deposit.
If written consent is given, remove that
area from the conflicting authority or
application (as relevant) if and when the
new application is granted..
If appropriate, restrict the grant of an
exploration licence for a colliery holding.
Send a letter to the applicant advising
whether or not the decision-maker
proposes to grant the application,
including any conditions the successful
applicant will be required to abide by. If
the decision is to grant, request
payment for the prescribed fees for the
first year and security deposit.
Consider any submissions in response
and determine to grant an exploration
licence over all or part of the area
sought in an application, or refuse the
application. If the decision is to grant,
impose appropriate conditions.
Remove land from any conflicting
authority or application, as required.
24
No action required.
25
No action required.
26
No action required.
27
No action required.
27
Prospect on the relevant land for the
relevant minerals, in accordance
with the conditions of your licence.
30
Seek and obtain the Minister’s
consent before carrying out any
operations within an exempted area
(as defined in the dictionary in the
Act). Consent will only be given once
you comply with the CNTA and have
obtained access arrangements with
the landholder.
Do not exercise any rights within
prescribed distances of certain
places without the prior written
consent of the relevant owner.
31
40
Record the security and fees as having
been received.
Ensure an exploration licence
application complies with the Act
regarding the land and mineral groups
specified in the application.
Ensure an exploration area complies
with the Act and Regulation (cl 16)
regarding its shape and size, and that it
is land specified in the application.
Impose conditions on the grant of an
exploration licence.
Determine a commencement date and
term of the exploration licence.
If required, approve the extension of the
operation of an exploration licence
pending determination of an application
for an assessment lease, mining lease
or mineral claim.
Facilitate compliance with the CNTA.
Once the CNTA has been obtained and
access arrangements have been
agreed, grant consent.
Respond to any allegations of breach of
this requirement.
Low-impact Exploration Licences
Section of
the Act
32C
Applicant responsibilities
DRE responsibilities
If a low-impact licence is granted,
comply with any conditions which limit
the prospecting operations authorised
by the licence.
32D
No action required.
32E
If you want to carry out unauthorised
prospecting operations, apply for a
variation.
Determine (by order published in the
Gazette) what kinds of prospecting
operations can be carried out under a
low-impact licence, and if a low-impact
licence is granted, impose conditions to
limit the rights under a low-impact
licence to those activities.
Do not grant a low-impact licence until
at least 4 months after serving notice on
the representative bodies referred to in
Section 32D of the Act.
Upon receipt of an application for
variation:
 consider whether the variation
triggers the ‘right to negotiate’
provisions of the CNTA,
 if yes, advise the licence holder
of its options and requirements to
comply with the ‘right to negotiate’
provisions of the CNTA
 if required, convert the lowimpact licence to a standard
exploration licence.
Consider any application for review, and
then confirm or change the
determination in writing.
Comply with the ‘right to negotiate’
provisions of the CNTA, if required as
a result of the variation being granted.
32EA
If you are unsatisfied with the
determination of your application to
vary your low-impact exploration
licence, apply for a review within 30
days of being served the written
notice of the outcome of your
application. Make sure the review
application is in the approved form
and manner, and pay the prescribed
fee (if any).
Renewal
Section of
the Act
113
Applicant responsibilities
DRE responsibilities
Apply for renewal of your exploration
licence within the period of two
months before your licence ceases to
have effect, and in any case, before it
expires.
Assess the application for renewal and
advise the applicant if anything is
incorrect or missing from the application
Lodge this application via the
approved form, provide all required
information (including as referred to in
clause 18 of the Regulation) and pay
the required fees.
114
Make sure the renewal application
relates to a maximum of five separate
parts of land.
Provide written submissions (if any) in
response to the notification of the
41
Assess the application and give the
applicant notice of the proposed
Section of
the Act
Applicant responsibilities
DRE responsibilities
proposed decision.
decision and an opportunity to make
submissions.
Consider the submissions (if any) and
decide whether or not to grant renewal.
117
Continue to carry out approved
operations on the area sought for
renewal after the date the licence
would have expired but for the
lodgement of a renewal application.
42
If the decision is to grant, ensure that:
 the term of renewal is no more than
six years
 the exploration area being renewed
only covers land which is within the
existing exploration area
 the exploration area being renewed
is no more than half of the existing
exploration area, unless the
decision maker is satisfied that
special circumstances exist that
justify renewal of the licence over a
larger area.
No action required.
Transfer
Section of
the Act
120
Applicant responsibilities
DRE responsibilities
Apply to transfer your exploration
licence using the approved form.
Assess the application for transfer and
advise the applicant if anything is
incorrect or missing from the
application.
Include the required information and
pay the prescribed fee.
121
122
Provide written submissions (if any) in
response to the notification of the
proposed decision.
If the transfer application is granted,
apply for registration of the transfer
using the approved form within 3
months of the decision.
Determine the application in
accordance with the Act.
Give the applicant notice of the
proposed decision (including any
proposed variation of licence
conditions) and an opportunity to make
submissions.
Consider the submissions (if any) and
decide whether to approve the transfer.
Register the transfer and issue the
revised licence documents.
Cancellation (request of the licence holder)
Section of
the Act
125
Applicant responsibilities
DRE responsibilities
Apply to cancel your exploration
licence using the approved form.
Assess the application for cancellation
and advise the applicant if anything is
incorrect or missing from the
application.
If the cancellation is for only part of
the exploration area, then describe
the land as required by clause 19 of
the Regulation.
126
163C
Provide written submissions (if any) in
response to the notification of the
proposed decision.
Prepare and submit final and
relinquishment reports within 30 days
of the cancellation (see clause 57 of
the Regulation).
43
Give the applicant notice of the
proposed decision and an opportunity to
make submissions.
Consider the submissions (if any) and
decide whether to cancel.
Assess the final and relinquishment
reports, and if satisfied, refund any
relevant security.
Appendix 4
Glossary of terms and definitions
Words in this Guideline have the definition given to those words in the Mining Act 1992, unless
otherwise defined below. Additional terms used in this Guideline are also set out below.
APRA
Australian Prudential Regulation Authority.
Block
Five minutes of latitude by five minutes of longitude making up a 1,000,000
area map.
CNTA
Commonwealth Native Title Act 1993.
Delegated decision
maker
The person holding a position to which the decision maker has delegated
their decision making powers through the provisions of section 363 of the
Mining Act 1992.
Department
Department of Industry, Skills and Regional Development.
DRE
Division of Resources and Energy, within the Department of Industry, Skills
and Regional Development.
Exploration
To carry out works on, or to remove samples from, land for the purpose of
testing the mineral bearing qualities of the land (defined as ‘prospect’ in the
Mining Act 1992).
Graticular system
Grid based on lines of latitude and longitude which defines ‘blocks’.
Mineral resource
Mineral concentration within the earth where exploration results indicate or
could indicate that there is a reasonable prospect for eventual economic
extraction.
Mineral group
Group of similar minerals defined by Schedule 2 of the Mining Regulation
2010.
MinView
DRE online application delivering geoscience information and services.
Private mineral
A mineral that is not owned by, or reserved to, the Crown.
Registered Native
Title Claimant
Has the same meaning as in the Commonwealth Native Title Act.
Rehabilitation
security deposit
Monetary security held by DRE to cover the rehabilitation liability on a title.
Right to negotiate
The process whereby the rights under the Commonwealth Native Title Act
1993 are protected prior to the grant of an exploration licence or the
approval of certain exploration activity.
44
Term (of an
exploration licence)
Period for which an exploration licence is granted or renewed.
Titles Administration
System (TAS)
Database fulfilling the requirements of section 161 of the Mining Act 1992
in which all interests created under that Act and some other Acts are
recorded. Serves as the statutory register of mining interests in NSW.
Titles NSW
DRE online application delivering exploration and mining title information
and other relevant land use information and services.
Titles
Recommendation
Committee (TRC)
A DRE internal review committee that assesses and makes
recommendations to the Decision Maker in relation to exploration licences.
Unit
One minute of latitude by one minute of longitude making up a 1,000,000
area map (also, one twenty-fifth portion of a ‘block’).
45