By Damian Roe, Associate
The Queensland Government has announced major changes to the way land in the State is made available for coal and petroleum exploration and production. Under the 2011-2012 Mid Year Fiscal and Economic Review, miners will need to bid for the right to obtain exploration permits for coal, and will be assessed on their ability to optimise the value of the State's resources.
Here, associate Damian Roe explains what these changes mean for Queensland's resources sector.
Summary of key points
- The 2011-2012 Mid Year Fiscal and Economic Review, released on 13 January 2012, introduces a competitive bidding tender process for obtaining exploration permits for coal in Queensland.
- Areas for coal exploration will be released several times a year.
- To prevent applications for coal exploration being submitted while a tender process is introduced, a transitional Restricted Area 394 (RA394) has been declared over the whole of the State.
The new competitive bidding process
New exploration permits for coal in Queensland will only be available in areas of controlled land release through a competitive bidding process, which is consistent with how land is currently made available for petroleum and gas exploration.
Additionally, specific areas that the Queensland Government considers highly prospective for coal will be identified, and land will be periodically released through a competitive tender process, subject to a cash bidding condition. This provision will also apply to future calls for tenders for petroleum and gas authorities to prospect in areas considered to be highly prospective.
To prevent new applications for coal being submitted while a tender process is implemented in Queensland, a transitional Restricted Area 394 (RA394) has been declared over the whole of the State of Queensland. This means that no new applications for coal tenure can be made until Queensland moves to a controlled land release system.
Granted permits and applications existing before 13 January 2012 will not be affected by these reforms, and will continue to be assessed and progressed under the current legislative frameworks.
Release of areas for coal exploration
The Queensland Government has indicated that it intends to release areas for coal exploration several times a year. It proposes that through the tender process, applicants will be assessed against set criteria to ensure that the applicant best able to optimise the value of the State's resources is selected. However, exactly what the criteria will entail is yet to be announced.
Amendments to legislation will be made to give effect to these changes now that RA394 is in place, including amendments to the Mineral Resources Act 1989, which will be proposed in a draft Bill.
Changes to fees and levies
Fees and levies have also been increased for services provided by the Department of Employment, Economic Development and Innovation, and for the services of the Coordinator-General to mining and major projects.
The Queensland Government's full 2011-2012 Mid Year Fiscal and Economic Review and the Treasurer's statement on the changes can be viewed online. No further details have been released at this time. However, we will continue to monitor the changes and will provide more information as it comes to hand.
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