Mining Tenements explained

These are the different types of mining tenements prescribed under the Mining Act 1978:

• Prospecting Licences (Sections 40 to 56)
• Special Prospecting Licences for Gold (Sections 56A, 70 and 85B)
• Exploration Licences (Sections 57 to 69E)
• Retention Licences (Sections 70A to 70M)
• Mining Leases (Sections 70O to 85A)
• General Purpose Leases (Sections 86 to 90)
• Miscellaneous Licences (Sections 91 to 94)

An application for any of these tenements may be made at any of the department’s Mining Registrar offices (tell me more about Mining Registrar’s Regional Offices) or lodged electronically via the department’s website using Mineral Titles Online (MTO).

An application fee and rental is payable for all tenements. Tell me more about Fees and Charges.

Also see Mining Act Guidelines -  Basic Provisions pamphlet.

• The maximum area for a prospecting licence is 200 hectares.
• Prospecting licences must be marked out unless otherwise specified. Tell me more about marking out and applying for mining tenements .
• There is no limit to the number of licences a person or company may hold, but a security ($5000) is required in respect of each licence.
• The term of a prospecting licence is four years, with the provision to extend for one further four year period.
• The holder of a prospecting licence may, in accordance with the licence conditions, extract or disturb up to 500 tonnes of material from the ground including overburden, and the Minister for Mines and Petroleum may approve extraction of larger tonnages.
• Prescribed minimum annual expenditure commitments  and reporting requirements apply.

• limited in area to 10 hectares
• interest in no more than 10 Special prospecting licences (SPL) at the same time
• may be marked out in respect of land within an existing prospecting licence or exploration licence (viz. ‘the primary tenement’) that has been in force for one year
• may be marked out in respect of land within an existing mining lease, following leaser holder consent
• may be granted on a prospecting or exploration licence if it is considered that activities could be carried on without undue detriment to the activities of the ‘primary tenement’ holder
• Other information and restrictions apply in respect of SPLs. Find out more about ‘Special Prospecting Licence (for Gold)’.
• Prescribed minimum annual expenditure commitments  and reporting requirements apply.

On 28 June 1991, a graticular boundary (or block) system was introduced for Exploration Licences. Tell me more about the exploration licence graticular boundary system.

The minimum size of an Exploration Licence is one block, and the maximum size is 70 blocks, except in areas not designated as mineralised areas, where the maximum size is 200 blocks.

An exploration licence is not marked out and there is no limit to the number of licences a person or company may hold but a security ($5000) is required in respect of each licence.

Please see details for term and compulsory surrender below:

• For licences applied for prior to 10 February 2006, the term is five years plus two possible extensions of two years and a further period of one year thereafter. At the end of both the third and fourth year of its term, the licensee is required to surrender 50 per cent of the licence.
• For licences applied after 10 February 2006, the term is five years plus possible extension of five years and further periods of two years thereafter, with  40 per cent of ground to be surrendered at the end of year six.

The holder of an exploration licence may in accordance with the licence conditions, extract or disturb up to 1000 tonnes of material from the ground which includes overburden. The Minister may approve extraction of larger tonnages.

Prescribed minimum annual expenditure commitments and reporting requirements apply.

• A ‘holding’ title for a mineral resource that has been identified but is not able to be further explored or mined
• can be applied for over an exploration licence or prospecting licence applied for prior to 10 February 2006 (after this date “retention status” must be applied for) or any mining lease (primary tenements)
• may be granted in respect of the whole or any part of land within the boundaries of a primary tenement/s
• has no maximum area and the term cannot exceed five years and is renewable for further periods not exceeding five years
• does not require you to mark out the land within a retention licence unless the Minister for Mines and Petroleum requires Regulation 23B(2).

The maximum area for a Mining Lease applied for before 10 February 2006 is 1000 hectares. Beyond that, the area applied for relates to an identified orebody as well as an area for infrastructure requirements. Mining Leases must be marked out.

Tell me more about marking out and applying for mining tenements.

An application for a Mining Lease must be accompanied by one of the following:

•  a Mining Proposal completed in accordance with the Mining Proposal Guidelines (pdf 844 KB) published by the department.
•  A statement of mining operations and a mineralisation report that has been prepared by a qualified person (For more information about mineralisation report and accompanying checklist)
•  a statement of mining operations and a resource report that complies with the JORC Code and that has been made to the Australian Securities Exchange Ltd (Tell me more about resource report).

Please refer to Documents required to be lodged before mining tenement may be granted for further information.

There is no limit to the number of mining leases a person or company may hold.  The term of a mining lease is 21 years and may be renewed for further terms. The lessee of a mining lease may work and mine the land, take and remove minerals, and do all of the things necessary to effectually carry out mining operations in, on or under the land, subject to conditions of title.

Prescribed minimum annual expenditure commitments and reporting requirements apply.

The maximum area is 10 hectares, unless the Minister for Mines and Petroleum  approves a greater area.

• General purpose leases must be marked out and are limited to a depth of 15 metres or such other depth that may be specified. Tell me more about marking out and applying for mining tenements.
• A general purpose lease is for purposes such as operating machinery, depositing or treating tailings, etc.
• A statement must accompany the application to include either a development and construction proposal or a statement setting out specific intentions for the lease (Section 87 and 90).
• There is no limit to the number of general purpose leases a person or company may hold.
• The term of a general purpose lease is 21 years, and may be renewed for further terms.

• There is no maximum area for a miscellaneous licence.
• A miscellaneous licence is for purposes such as a roads and pipelines, or other purposes as prescribed in Regulation 42B.
• There is no limit to the number of miscellaneous licences a person or company may hold.
• The term of a miscellaneous licence is 21 years, and may be renewed for further terms.
• A miscellaneous licence can be applied for over (and can ‘co-exist’ with) other mining tenements.