FAQs Changes to Titles

Q Why is the Department making these changes?

The Mining Act 1992 has not been updated significantly since the Act commenced. Since then, there have been significant advances in the NSW environmental regulatory framework and the Act needs to reflect these improvements in process and standards.

The changes place greater responsibility on land holders, titleholders and leasees to ensure environmental management and other standards are met in relation to both privately and publicly owned minerals.

Q Why have fees increased for mining leases, mineral claims and other applications?

This is the first increase in thirteen years.  Fees have been calculated in accordance with cost recovery principles as set out in the NSW Treasury’s “Guidelines for pricing of user charges – Policy & Guidelines Paper” and reflect the costs borne by the Department in assessing and processing authorities as required under the legislation.

Q. What will I have to do now that I am going from a Private Mining Agreement to a Mineral Owner Authority?

You will be required to apply for a new authority to cover the area of land for which the mineral is privately owned.  You will need proof that you are the owner of the mineral (this may require a statement from a solicitor confirming the mineral ownership), as well as a security deposit to cover the rehabilitation costs associated with the proposed operation. If you are applying for a Mining (Mineral Owner) Lease there will be a requirement to supply particulars of the resource; a copy of the development consent from Council; or advice confirming development consent is not required. Copies of the application forms are on the departmental website, along with instructions on how complete the application.

Q I have a Private Mining Agreement.  How long before I need to change to a Mineral Owner Authority?

New private mining agreements will not be able to be notified after 1 November 2010. Existing private mining agreements will continue for a period of 12 month following the commencement of the amendments the Mining Act 1992. After that time all prospecting and mining operations will be required to be carried out under an authority under the Mining Act 1992.

The amended Act provides that Mineral Owners have the right to apply for Mineral Owner Authorities [(Exploration (Mineral Owner) Licence, Assessment (Mineral Owner) Lease or Mining (Mineral Owner) Lease)], or a standard authority  to explore or mine for privately owned minerals.  If by 1 September 2011, an application is made to continue operations previously carried out on a private mining agreement, some of the usual requirements, including the requirement to advertise and payment of application fees and grant fees (in the case of Mining (Mineral Owner) Leases), will be waived.

The reason these changes have been made is to ensure thatprospecting and mining operations under a private mining agreement are subject to the same comprehensive environmental controls as other prospecting and mining operations.

Q. Are the details required for an Exploration Licence Application different from the past?

Yes, you will notice a change to the level of information required and that the layout of the application form has changed.  Information that was previously required on the approved form is now required by the Regulation. For example there is now a requirement to supply information in relation to the applicant’s environmental performance, and a letter from a chartered accountant indicating that the applicant has the financial capacity to meet its obligations with in the State is also required. For more information check the instruction attached to the new application form (EL1).

Q.  I have a sub-lease on an existing mine lease?  What do I have to do?

Existing sub-lease arrangements, whether registered as an interest or not will cease on 1 February 2011.  Any person claiming to have been granted a sublease or the holder of a sublease may apply to have the sublease registered. A sub-lease must be registered in accordance with Section 163C for it to be effective. It should be noted that the Minister’s approval will be required to apply for the registration of a sublease unless the exemption provisions (below) apply.  If Minister’s approval is given, an application for the registration of a sublease may be lodged.

An exemption to obtaining Minister’s approval will be available under section 163A(7) of the Act if all the following criteria are met:

(a) the sublessee is the leaseholder of an adjoining lease or sublease area, and
(b) the total sublease area (including the area of any adjoining subleases) does not exceed 100 hectares, and
(c) the term of the sublease does not exceed 5 years, including any consecutive sublease periods and options for extension.

It should be noted that if sublease arrangements have been in place for long periods of time, or are proposed to be in place for long periods, it is the preference of the department that the sublease arrangements be made permanent via the part transfer of the lease covering the area for the sublease.  Factors such as these will be considered by the Minister in determining approval of subleases.

Q. I currently hold a mineral claim (outside of a mineral claims district ie Lightning Ridge or White Cliffs). What do I need to do to have it deemed to be a mining lease?

Nothing.  This will be an automatic process.  However, you need to be aware of changed conditions and reporting requirements that will be introduced. The current general conditions of the title will remain in force until your next renewal.  However, some of the environmental conditions may change – in which case,  you will be advised in writing by the Department. Your current mining operations plan (MOP) will continue.

FAQs Changes to Exploration Reporting

Q Why is the Department making these changes?

Changes in exploration reporting requirements will benefit the standard of reports and information held by the Department, making the use of previous exploration information easier and more relevant. 

Q. Have the reporting requirements on titles changed?

Yes.  New reporting guidelines are being prepared to assist with the changes in reporting requirements. Submission of reports is also a legislative requirement, and enforcement action may be taken for non-compliance. (A guide for reporting on exploration and prospecting in New South Wales)

Q. Do these changes mean I have to complete more reports?

No.  Interim reports, which are currently required every 6 months between annual reports, are no longer required.  However, Partial Relinquishment Reports are now required whenever title areas are reduced. Reporting will be made easier by providing easy to use report guidelines that will cut down on unnecessary information.

Q What reports do I now have to submit?

While six monthly Interim Reports are no longer required, Annual Reports and Final reports are still required, and Partial Relinquishment Reports are now mandatory. 

Q. What is the Renewal Justification Statement and why is it required in addition to annual reports?

A Renewal Justification Statement (RJS) is required to accompany any application for renewal of a title. The RJS is used to assess applications for renewal prior to receipt of all annual reports. While the annual report is a comprehensive technical report, the RJS is a brief summary of work conducted in the period since renewal and providing this summary will enable the department to undertake renewal application assessments in a more timely fashion.

Q. What is the difference between an Annual Report and a Renewal Justification Statement?

An Annual Report is a comprehensive technical report on a single title. The report has a prescribed format requiring information about the title’s location, geology, exploration history as well as complete digital record of all sample analysis and survey results of work conducted during the reporting period, including maps and cross sections where necessary. A record of expenditure incurred is also required. The report is also required to present conclusions and discussions of outcomes work undertaken, and recommendations for further exploration work.

A Renewal Justification Statement (RJS) is a brief report, mostly in tabular format which provides a summary of work conducted during the current term. The RJS will include a map of work locations, expenditure incurred, a summary of the proposed work program and the proposed expenditure if the title is renewed.  In addition a statement is required justifying the renewal in terms of the departments renewal policy.

Q. Are Partial Relinquishment Reports required every time a title is reduced in size?

Yes.  Whenever an area of a title is relinquished, a report or reports containing details of all work undertaken on the specific area must be made available to any potential incoming applicant. This can be achieved by preparing a Partial Relinquishment Report and/or by making all previous reports on the title ‘open file’- that is, open for access by new explorers, researchers or others.

Q. Will my exploration reports be kept confidential? What about the renewal justification statements?

Yes. Exploration reports will be kept confidential as long as the title to which the reports refer is current. Once an area is no longer held as a current title, information collected by the Department on that area is generally made ‘open file’ – or open for access by new explorers, researchers or others. Partial Relinquishment Reports will be made open file on submission. Confidentiality of Renewal Justification Statements are not treated as reports and will not be placed on ‘open file’. However, Renewal Justification Statements can be accessed via Freedom of Information requests, but details of work conducted on the title and results would remain confidential.

Q. What are the advantages of using EROL to submit reports?

By using EROL your report is sent instantly to the Department and you will receive an electronic receipt confirming that your report has been received. The EROL on-line process provides a level of guidance to ensure that all the information required has been included prior to submission.

Q.  What happens if I have trouble lodging my report on time?

Applications for extensions and exemptions from reporting requirements must be lodged 30 days prior to the reporting due date.  If this extension is not obtained prior to the due date, then the title holder is non-compliant with conditions and future applications may be affected.

Q. What penalties will apply if I do not comply with the reporting requirements set out as a condition of my title?

As an example, if you are lodging a renewal application and you don’t provide the necessary details in your renewal justification statement, the renewal may be delayed or refused.

Q. What format do I need to use to submit geochemical and geophysical data?

Appropriate formats for submission of digital geochemical and geophysical data with exploration reports are detailed in Exploration Reporting: A guide for reporting on exploration and prospecting in New South Wales.  Guidelines include acceptable digital file formats, required header file information and templates into which such data can be loaded. Regional geophysical data, such as airborne surveys, should be provided in a Geophysical Survey Results Report submitted within 6 months of acquisition of the data. Further details of how data should be presented are provided in Exploration Reporting: A guide for reporting on exploration and prospecting in New South Wales.

Q. Can I apply for a title on-line?

Yes, although only limited applications may be lodged on line at present. Exploration Licence Applications for Groups 1 to 8 and 10 (as per Schedule 2 of the Mining Regulations 2010) may be lodged on line through the Minview facility.

Q. Why have fees been increased?

This is the first increase in thirteen years.  Fees have been calculated in accordance with cost recovery principles as set out in the NSW Treasury’s “Guidelines for pricing of user charges – Policy & Guidelines Paper” and reflect the costs borne by the Department in assessing and processing authorities as required under the legislation.

FAQs - Changes to Environmental management

Q Why is the Department making these changes?

The Mining Act 1992 has not been significantly updated since the Act commenced. Since then, there have been significant advances in the  NSW environmental regulatory framework and the Act needs to reflect these improvements in process and standards.

The amendments ensure the Act is consistent with contemporary environmental standards, with community expectations, and with recent developments in the legislative and regulatory framework.

The amendments strengthen the environmental management requirements of the minerals industry, so that exploration and mining developments meet high environmental standards and better environmental outcomes are achieved.

Q. Why are some amendments not coming into effect right away?

Further consultation is currently underway to ensure that there is a consistent, whole of government approach to the regulation of environmental impacts from mining. This consultation will enable the development of supporting guidelines and policies that better serve the needs of industry, government and the community.  This will promote the streamlining of approvals and reduce duplication.

Q Will my conditions change?

Existing conditions of authorisations will not change immediately.  However, all conditions will be progressively reviewed to reflect the new conditioning powers under the Mining Act 1992. For example, conditions may be amended to ensure consistency with planning approvals under the Environmental Planning and Assessment Act 1979 (NSW).  Also, refer below to the questions on MOPs and AEMRs.

Q. Has the Mining Operations Plan (MOP) been replaced by a Rehabilitation and Environmental Management Plan (REMP)?

The obligation to carry out mining operations in accordance with an approved MOP is imposed by way of a condition on all mining leases and mineral claims.   In future, a REMP will replace the requirement for a Mining Operations Plan (MOP). 

An approved REMP gives the titleholder approval to carry out activities under the authorisation, including mining operations, rehabilitation and other environmental and subsidence management activities.

The holder must comply with a REMP approved by the Director-General in carrying out activities authorised on the authorisation.

The MOP obligation will continue until it is replaced by a REMP, which will occur on commencement of section 70(1)(b) of the Mining Amendment Act 2008, expected in 2011.

Q. Will Annual Environmental Management Reports (AEMR) still need to be submitted?

AEMRs are currently an obligation imposed by a condition of an authorisation.  Conditions on existing authorisations will remain in place for the foreseeable future.  Over time, the Department will update all conditions, with the AEMR condition being replaced by an environmental management report.  The frequency and scope of reporting will depend on the nature, complexity and environmental impact of activities being proposed.

Q Do I still need to submit a Rehabilitation Cost Estimate for my mining lease?

Yes. A condition may be imposed on an authorisation requiring the holder to maintain a security deposit for the fulfilment of activities, including rehabilitation obligations, under the authorisation.   Existing conditions on mining leases requiring the maintenance of a security deposit will remain in force.   The level of security required changes over time in line with the changing rehabilitation liability.  The Department requires a mining lease holder to provide updated rehabilitation cost estimates for this purpose.  Assessment of the required security deposit is to be in accordance with the ESG1: Rehabilitation Cost Estimate Guidelines. 

The amendments have inserted a new part in the Mining Act 1992 (Part 12A) dealing with securities, which identifies the form and content of security conditions as well as the claim on and use of security deposits.

Q When do I have to submit an Environmental Performance Record and what will this be used for?

To ensure that only individuals and companies with a satisfactory environmental record are granted exploration and mining rights, applications for new authorities and transfers must include an environmental performance record.  An environmental performance record, defined in the Mining Regulation 2010, requires the disclosure of any convictions or revocations of approvals under specified legislation that have occurred in the 5 years preceding the application.