REGULATORY UPDATES

RE-INTRODUCTION OF RESOURCES LEGISLATION(BALANCE, CERTAINTY AND EFFICIENCY) AMENDMENT BILL 2011 (QLD)

The Queensland government is intending to re-introduce a slightly amended Resources Legislation (Balance, Certainty and Efficiency) Amendment Bill 2011 (Qld). The Bill, which was introduced by the previous government and lapsed on 19 February 2012, aims to balance the resources boom with other industries and land users in Queensland. This is primarily to be achieved by involving local governments in decisions about mining and petroleum activities in identified Urban Restricted Areas around certain cities and towns.

The Bill will amend a number of Acts, including the Mineral Resources Act 1989 (Qld), the Land and Resources Tribunal Act 1999 (Qld), the Petroleum Act 1923 (Qld) and the Petroleum and Gas (Production and Safety) Act 2004 (Qld). Relevantly, amendments to the Mineral Resources Act 1989 (Qld) include the prohibition on transferring a divided part of a mining tenement, to ensure that all mining tenements retain their cohesion, and a requirement to register dealings with mining tenements (also providing that a dealing will have no effect until it has been registered). In addition, the Bill will impose a restriction on carrying out authorised activities in Urban Restricted Areas without the Minister's approval.

OTHER NEWS

AUSTRALIA-CHINA LOW-EMISSIONS COAL PARTNERSHIP FUND

On 9 July 2012, the AUD$1.1 million Australia-China Clean Coal Technology Partnership Fund was launched. The fund will be used by research and industry organisations to strengthen collaboration between Australia and China through exchanges, secondments, workshops and symposiums in the development of low-emissions coal technology. The aim of this initiative is to develop and implement low emissions coal technologies in power stations.

FEDERAL FUNDING FOR CENTRAL QUEENSLAND AND DARLING DOWNS REGIONS

On 9 July 2012, the Queensland Deputy Premier, Jeff Seeney, announced that the Australian Federal Government has provided AUD$3.5 million to fund development in Central and North Queensland. This funding will go towards the North Queensland Resource Supply Chain to develop "comprehensive models to help prioritise projects and investment in North Queensland" as well as to the Central Queensland Resource Supply Chain to "manage regional growth in Central Queensland including the Galilee and Bowen Basins".

The Ministerial media statement in relation to the federal funding is available at: http://statements.cabinet.qld.gov.au/ MMS/StatementDisplaySingle.aspx?id=79822

FIRST CASE UNDER AMENDED QUEENSLAND LAND ACCESS LAW

Recently, the Queensland Land Court heard the first application in relation to compensation under Schedule 1 of the Mineral Resources Act 1989 (Qld) (MRA), which commenced on 10 December 2010.

The registered lessee of land that was the subject of an exploration permit for coal (EPC) sought $50,000 in compensation from the EPC holder, Peabody West Burton Pty Ltd (Peabody), for loss of land value from a potential future mining lease. Peabody applied for a court decision on the compensation liability pursuant to section 22 of Schedule 1 of the MRA. At the heart of the dispute was whether the respondent could claim for "diminution of value" under section 13 of Schedule 1 of the MRA.

The Land Court held that the mere fact that there is an EPC over the land and the risk of a future mining lease does not qualify the lessees for compensation. As such, while $3220 was awarded for actual use of land and drilling activities, there was no compensation awarded for diminution of value.

INDONESIA BANS EXPORTS OF RAW ORE

In June 2012, the Indonesian government introduced a ban on raw ore exports, requiring miners to process the ore in Indonesia before exporting. The ban will be introduced gradually, but will apply to all ore exports by 2014. Currently, the Indonesian government is allowing companies to continue exporting raw ore if they hold an approved business plan and have signed a commitment to the Indonesian government to stop exporting raw ore by 2014.

Indonesia is currently the world's top exporter of coal used for power stations, nickel and tin. However, reports state that the raw ore export ban has created "industry chaos", with June exports of nickel ore dropping by 80% and copper ore export dropping by 90%. It has been reported that many mining companies have halted operations and hundreds of thousands of workers have lost their jobs.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Most awarded firm and Australian deal of the year
Australasian Legal Business Awards		 Employer of Choice for Women
Equal Opportunity for Women
in the Workplace (EOWA)