Providing a rehabilitation security deposit

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Overview

All holders of exploration licences, assessment leases and mining/production leases (collectively referred to as titles) in NSW under the Mining Act 1992 and Petroleum (Onshore) Act 1991 must provide and maintain a rehabilitation security deposit to secure funding for the fulfilment of rehabilitation obligations under the title including rehabilitation obligations that may arise in the future.

The security deposit is held by NSW Resources to cover rehabilitation obligations and may be used by NSW Resources to carry out rehabilitation in the event the title holder fails to complete satisfactory rehabilitation.

The security deposit amount, stated in the title's security deposit condition, must be provided and maintained. The amount may increase or decrease as activities are carried out and rehabilitation is signed off by NSW Resources. When a title expires or is cancelled, and NSW Resources is satisfied that rehabilitation obligations have been met, the security deposit will be returned to the person who provided it (or otherwise in accordance with section 261G(4) of the Mining Act 1992).

The Resources Regulator, within NSW Resources, is responsible for determining the assessed deposit i.e. the amount of security deposit required. For information on how security deposits are calculated visit our Determining a rehabilitation security deposit page.

Assessments and Systems, within NSW Resources, is responsible for the administration of the security deposit conditions and the receipt of payment of security deposits.

The information provided on this page does not relate to the lodgement of a security deposit for opal prospecting licences or mineral claims (small-scale titles). For information on the provision of a security deposit for small-scale titles, contact lightningridge.office@dpird.nsw.gov.au.

When is a rehabilitation security deposit required to be provided?

A rehabilitation security deposit is required to be provided by the title holder at the following times:

Before a new title is granted,
Before a transfer of a title is registered, and
During the life of a title when the security deposit changes ('assessed deposit'), which may be triggered by:
- an activity approval for assessable prospecting operations,
- annual submission of a Forward Work Program and associated Rehabilitation Cost Estimate (RCE),
- submission of a RCE at any time rehabilitation obligations change, or
- application for department approval of completed rehabilitation.
In this case, a variation instrument is issued to the title holder with the adjusted amount. If the amount increases, a due date for the provision of the increase is provided. The timeframe to provide the increase in security deposit as a result of a variation is usually 42 calendar days from the date of notice of the variation.

How to provide a security deposit

A security deposit may be provided in the form of either:

cash, or
a deed of security deposit bond (bank guarantee).

Cash

Direct deposit can be made to ‘Department of Primary Industries and Regional Development’. Please ensure the title or application number is used as the reference when making payment (e.g. ELA1234).

For direct deposit details, please email the Funds and Levies team.

Once payment has been made, please email a copy of the remittance advice to securities.titles@dpird.nsw.gov.au. Interest does not accrue for cash payments.

Deed of security deposit bond – bank guarantees

Mandatory requirements

TPG25-14 Acceptance of Guarantees from Financial Institutions by Government Agencies(December 2025) (TPG 25-14) issued by NSW Treasury outlines the requirements that NSW Resources applies to the acceptance of security deposit bonds.

The TPG25-14 came into effect on 1 January 2026 and replaced the former TC14-01 Acceptance of Performance Bonds or Unconditional Undertaking by Government Agencies. For information about the change, refer to the Frequently Asked Questions provided further down on this page.

Bank guarantees, and security bonds generally, for exploration and mining titles must be issued by a financial institution that:

is supervised by the Australian Prudential Regulatory Authority (APRA) (see the APRA website for a full list of APRA regulated financial institutions) and meets the Credit Quality Test in the TPG 25-14, or
has been approved by the NSW Treasury through a formal application process.

If you wish to provide a security deposit bond from a financial institution not supervised by APRA please contact the Funds and Levies team for further guidance.

From 1 April 2026 a security deposit bond must remain compliant with the TPG 25-14 during the life of the bond.

Format of a security deposit bond

NSW Resources has an approved Deed of Security Deposit Bond template. This is the only format that will be accepted. Any other formats, including ‘standard’ security documents used by financial institutions, are not acceptable.

The approved Deed of Security Deposit Bond templates are:

Use this template if the bond is for a new title to be granted for an individual title under the Mining Act 1992:
NSWR Deed of Security Deposit Bond in anticipation of Grant – Mining Act 1992 -APRA supervised - Individual (DOC, 73.5 KB)
Use this template if the bond is for a current individual title under the Mining Act 1992:
NSWR Deed of Security Deposit Bond – Mining Act 1992 - APRA supervised - Individual Template (DOC, 78.5 KB)
Use this template if the bond is for a group of exploration licences under the Mining Act 1992:
NSWR Deed of Security Deposit Bond – Mining Act 1992 - APRA supervised - Group Exploration Licences Template (DOC, 56.5 KB)
Use this template if the bond is for a group of mining leases under the Mining Act 1992:
NSWR Deed of Security Deposit Bond – Mining Act 1992 - APRA supervised - Group Mining Leases Template (DOC, 57 KB)
Use this template if the bond is for an individual petroleum title under the Petroleum (Onshore) Act 1991:
NSWR Deed of Security Deposit Bond – Petroleum (Onshore) Act 1991 – APRA supervised - Individual (DOC, 56.5 KB)
Use this template if the bond is for a group of petroleum titles under the Petroleum (Onshore) Act 1991:
NSWR Deed of Security Deposit Bond – Petroleum (Onshore) Act 1991 – APRA supervised - Group (DOC, 61.5 KB)

If you are unsure which template to use or have questions about how to complete it, please contact the Funds and Levies team.

To assist in the return of the deed when NSW Resources no longer requires it, the financial institution should indicate the branch and address to which it should be returned.

Before the final Deed of Security Deposit Bond is issued by the financial institution, NSW Resources requires a draft copy for review by email to securities.titles@dpird.nsw.gov.au.

When NSW Resources has confirmed that the document is in the approved format and that the details are correct, the final document can be issued by registered mail, courier or in person to NSW Resources at:

Funds and Levies
NSW Resources
Department of Primary Industries and Regional Development
516 High Street Maitland NSW 2320
PO Box 344 Hunter Region Mail Centre 2310

Upon issue of the original document, please provide the Australia Post tracking number or courier details to securities.titles@dpird.nsw.gov.au.

Security deposit bonds are stored securely at NSW Resources’ Maitland Office.

Return of a security deposit

A security deposit can be returned (in part or full) to the person who provided it (or otherwise in accordance with section 261G(4) of the Mining Act 1992) at the following times:

When the required security deposit is reduced and NSW Resources holds more than the required – the difference can be returned, or
When a title expires or is cancelled and rehabilitation obligations have been completed to the satisfaction of NSW Resources, or
When a security deposit is replaced by another deed of security deposit bond (bank guarantee) or cash (or a combination of both).

NSW Resources can only return cash security by electronic funds transfer (bank transfer). If the security deposit is held in cash, the person (or authorised person) who provided the deposit must complete and lodge the EFT1 Form: Electronic funds transfer authorisation. (DOCX, 89.88 KB)

If the security deposit is in the form of a deed of security deposit bond and the deed is no longer required, it will be returned in accordance with the terms of the deed.

Frequently Asked Questions – Treasury Policy on bonds

What is NSW Treasury Policy TPG25-14?

TPG25-14 Acceptance of Guarantees from Financial Institutions by Government Agencies (TPG25-14) is a mandatory policy applying to NSW government agencies – including NSW Resources.

The purpose of TPG25-14 is to help ensure that financial institutions (institutions) providing guarantees (security bonds) to government agencies meet certain financial backing benchmarks. It also includes requirements for agencies to call a bond in if an institution no longer meets certain financial thresholds.

TPG25-14 came into effect on 1 January 2026. There was a transition period of 3 months to 1 April 2026.

The TPG25-14 replaced the former NSW Treasury circular - TC14-01 Acceptance of Performance Bonds or Unconditional Undertaking by Government Agencies.

How does TPG25 impact NSW Resources’ security bond requirements?

TPG25-14 specifies which institutions can issue security bonds to NSW Resources. Security bonds secure a holder’s obligations under the security bond condition imposed on exploration licences, assessment leases and mining/production leases under the Mining Act 1992 and the Petroleum (Onshore) Act 1991 (collectively referred to as titles).

To be eligible, in summary, institutions providing security bonds must be either:

Australian Prudential Regulatory Authority (APRA) supervised and meet the minimum prescribed credit rating standards, or
Be approved by NSW Treasury through a formal application process.

Can a holder still provide cash as security deposit?

Yes. TPG25-14 does not affect the ability of title holders to provide a security deposit in the form of cash. TPG25-14 only applies to security deposits in the form of a bond or bank guarantee.

What’s the difference between the former NSW Treasury circular and TPG25-14?

Under the former NSW Treasury circular (TC14-01), agencies could only accept bonds from:

APRA supervised institutions

non-APRA supervised institutions if the institution met minimum prescribed credit rating standards and the total value of bonds held by the agency did not exceed 10% of that institution’s net assets.

Restrictions also applied to institutions without local branches or were operating as subsidiaries of overseas companies.

In contrast, TPG25-14 requires NSW Treasury to assess applications from non-APRA supervised institutions on their individual merits. NSW Treasury must be satisfied that the likelihood of a bond being honoured is not materially lower than other bonds accepted under TPG25-14.

How is NSW Resources responding to TPG25-14?

NSW Resources is responding by:

Supporting stakeholders through the change and working with them on a case-by-case basis to help ensure they can meet their rehabilitation security bond obligations on time,
Working closely with NSW Treasury to finalise guidance on the application process for non-APRA approved institutions seeking approval to provide security bonds.

Does TPG25-14 apply to new titles granted by NSW Resources?

Yes. From 1 April 2026, any title holder that choses to provide a security deposit in the form of a bond or bank guarantee must ensure it complies with the requirements of TPG25-14.

Title holders are encouraged to familiarise themselves with TPG25-14 to help ensure they can meet the requirements and any security deposit lodgement timeframes.

Does TPG25-14 impact existing bonds?

No. TPG25-14 is not retrospective. This means that any existing bond held by NSW Resources remains valid. Existing bonds do not need to be amended to comply with TPG25-14.

However, from 1 April 2026, any new bond, including one that is replaced or ‘swapped’, must comply with TPG25-14.

TPG25-14 applies to current titles in the following situations:

If the security deposit is increased and the holder elects to secure the newly increased security deposit (in part or whole) with a security bond, and
When it is transferred, the transferee will be required to comply if it elects to secure its obligations under the security deposit condition with a security bond, and
An existing security bond is replaced or swapped out.

What if a title holder, or applicant, is not sure if an institution satisfies TPG25-14 and can issue a security bond to NSW Resources?

The APRA website contains a list of institutions that are APRA supervised. Refer to the APRA website (www.apra.gov.au/registers) to determine if the institution is APRA supervised.

If the institution is listed on one of the APRA registers of supervised institutions, it must also need to satisfy the minimum credit rating prescribed by TPG25-14.

If the institution is not APRA approved, or does not meet the credit rating requirement, approval is required from NSW Treasury for the bond. Approval is sought by the title holder via NSW Resources which then lodges with NSW Treasury (see below).

What is the process for seeking NSW Treasury approval of a non-APRA regulated institution providing a bond?

Requests to provide a bond from a non-APRA supervised institution must be made by the title holder to NSW Resources. NSW Resources will coordinate the approval request with NSW Treasury.

NSW Treasury has developed an application form to support a request for approval of a Treasury Approved Guarantee. This is a link to the form.

Title holders are encouraged to contact NSW Resources at first instance if considering applying for approval of a Treasury Approved Guarantee.

If I have more questions, who can I contact?

If you have questions about the NSW Treasury Policy or the provision of security deposit bonds, contact the Funds and Levies team at NSW Resources at securities.titles@dpird.nsw.gov.au or 02 4063 6800.

If you have an enquiry that relates to a security bond from a non-APRA approved institution, please provide any available details to NSW Resources. The team will review the information and provide further advice.

For more information and assistance

Email: securities.titles@dpird.nsw.gov.au

Phone: (02) 4063 6800 Monday to Friday 08:30am to 4:30pm

Address: Department of Primary Industries and Regional Development
516 High Street, Maitland, NSW 2320