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NSW Resources

Operational allocation of coal

Operational Allocation Framework

The Operational Allocation Framework supports existing coal explorers and miners in NSW. Operational Allocation is the process for allocating additional coal exploration areas to existing coal exploration licence, assessment or mining lease holders to avoid sterilisation of coal resources, supporting better mine design or extending the life of a mine.

The Operation Allocation Framework is outlined in the Guidelines for coal exploration licence applications for operational allocation purposes. (PDF, 57.29 KB)

Limiting factors on applications for Operational Allocations are designed to ensure industry does not hold land unnecessarily but that there is a practical method to gain access to additional resources to support operations.

Key elements of the framework are:

  • Only existing coal exploration licence, assessment and mining lease holders can apply.
  • Application areas are limited and based on the area currently held under title.
  • Applications can only be for prescribed purposes (refer to clause 20 of the Mining Regulation 2016).
  • Applications will be subject to a market interest test.
  • A number of qualitative criteria are also considered as outlined in the guidelines.

As well as meeting the requirements of the guidelines, applications must meet all relevant requirements of the Mining Act 1992 and the Mineral prospecting minimum standards (PDF, 449.19 KB).

Existing coal exploration licence, assessment lease or mining lease holders interested in applying for a coal exploration licence for operational allocation purposes will need to complete Form EL6 - Application for an exploration licence for Group 9 (coal) for operational allocation purposes. Applications can also be made through the Titles Management System.

Operational Allocation is in line with the NSW Government's Strategic Statement on Coal Exploration and Mining in NSW.

Market Interest Test

A competitive selection process may be triggered when there is sufficient market interest in an area subject to a coal exploration licence application under the Operational Allocation Framework.

If you would like to express interest in an area with a current Market Interest Test process underway, please provide details of:

  • Why you are expressing an interest in the area;
  • An overview of how it may form part of an extension to an existing mine or a potential new mine (including for example an overarching conceptual mine plan); and
  • Your experience in coal mining and exploration and/or developing a mining operation, including with reference to your financial and technical capability.

Submissions may be made by email to titles@regional.nsw.gov.au and quote “Market Interest Test for ELA XXXX” in the subject line by the closing date.

Any valid submissions may trigger a competitive process for the release of the area. Submissions should only be made where a party has a genuine interest in making an application for an exploration licence and where interested parties are willing to participate in a competitive process if it is triggered.

For more information contact NSW Resources at titles@regional.nsw.gov.au or (02) 4063 6600.