The Queensland Government recently made important amendments to the Mineral Resources Act 1989 (Qld) (MRA) which impact on applicants for exploration permits, joint-venturers, current exploration permit holders and exploration permit holders who are seeking to renew their permit. Exploration permits under the MRA include exploration permits for minerals and exploration permits for coal. The amendments to the MRA were contained within the Part 13 Clean Energy Act 2008 (Qld) (CEA) which came into effect by proclamation on 1 July 2008.

Exploration Permit Applications

Prior to the CEA amendments to the MRA, the Minister for Mines and Energy (Minister) had to be satisfied that the requirements of section 133 of the MRA had been complied with in order to grant an exploration permit. However, the CEA amended the MRA so that the Minister must now be satisfied that the requirements of the MRA, not just section 133, have been complied with.

The CEA also inserts a new provision in the MRA which allows the Minister discretion to request that an exploration permit applicant give the Minister other information so that the Minister may assess the application. If the applicant fails to provide the information required or does not give the information to the Minister within the stipulated period, the Minister may reject the application.

Joint Ventures

In some circumstances, applications are made for exploration permits over non-contiguous sub-blocks. This may occur where companies with sub-blocks which are not contiguous to one another wish to enter into a joint venture, or have entered into a joint venture and wish to consolidate their respective non-contiguous sub-blocks into one exploration permit. Formerly, section 127 required the Minister to assess whether or not, notwithstanding the sub-blocks were not contiguous, exploration could be undertaken competently and efficiently. The amended section 127 now provides that it is now incumbent on the applicant to provide justification in the proposal to the Minister for the grant of an exploration permit for sub-blocks of land that do not have a common boundary. The applicant will need to provide sufficient and relevant information to the Minister which explains how the proposed work program in the application can be carried out using competent and efficient mineral exploration practices.

Reporting Obligations

The CEA amended the MRA to clarify the timeframes for the reporting requirements of an exploration permit. The holder of an exploration permit must give the Minister the following reports:

  • an annual report to the Minister during each term of the exploration permit, within 1 month after each anniversary of the day the exploration permit takes effect;
  • a report about the reduction in the area of the exploration permit, given within 2 months after the reduction takes effect; and
  • a report summarising the results of exploration for the whole term of the exploration permit given within 2 months after the exploration permit ends.

The Minister now also has the discretion to request any further reports or request any materials to be obtained.

Renewal Applications

The CEA amended the MRA so that an application for the renewal of an exploration permit must be accompanied by a statement describing the program of work proposed to be carried out under the authority of the exploration permit (if renewed) and detailing the estimated human, technical and financial resources to be used to carry out the exploration work during each year of the term of the exploration permit, if renewing and detailing the applicant's financial and technical resources for carrying out the work.

The CEA also inserts a new clause which provides the Minister the power to request further information from the applicant for renewal where the Minister is not satisfied with the information contained in the application for a renewal of an exploration permit. Again, if the applicant fails to provide the information required or does not give the information to the Minister within the stipulated period, the Minister may reject the application for renewal.

Conclusion

It is important that exploration permit applicants and holders are aware of their new rights, duties and obligations under the MRA in order to maximise the exploration potential of their current or proposed tenements.

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.