Department for Manufacturing,

Innovation, Trade, Resources and Energy

Mining Act 1971

Presentation to AMPLA

21 May 2014

Junesse Martin

2

Disclaimer

The information contained in this presentation has been compiled by the

Department for Manufacturing, Innovation, Trade, Resources and Energy

(DMITRE) and originates from a variety of sources. Although all reasonable

care has been taken in the preparation and compilation of the information, it

has been provided in good faith for general information only and does

not purport to be professional advice. No warranty, express or implied, is

given as to the completeness, correctness, accuracy, reliability or currency

of the materials.

DMITRE and the Crown in the right of the State of South Australia does not

accept responsibility for and will not be held liable to any recipient of the

information for any loss or damage however caused (including negligence)

which may be directly or indirectly suffered as a consequence of use of

these materials. DMITRE reserves the right to update, amend or

supplement the information from time to time at its discretion.

2

Department for Manufacturing,

Innovation, Trade, Resources and Energy

DM

ITR

E R

egu

lati

on

V

alu

e

Ch

ain

Lan

do

wn

er

Inte

ract

ion

s D

MIT

RE

Ass

essm

ent

• Exploration PEPR • Inspections • Compliance Reports

• Mining PEPR • Ongoing Inspections • Annual Compliance Reports

One Stop Shop - Whole of Government Approach, Information, Tenement Management, Case Management, Land Access

Oth

er

Ass

essm

ent

&

Reg

ula

tio

n

• Enforcement Tools – Directions / Penalties • Rehabilitation Bonds • Liability Insurance

Leading Practice Regulatory Framework, Mining Act 1971 Environmental Assessment, Social Licence and Economic Growth

Exploration Regulation

Environment Protection Act 1993, Radiation Protection and Control Act 1982, Natural Resources Management Act 2004, Native Vegetation Act 1991, Native Title Act 1993, Aboriginal Heritage Act 1988, Mines and Works Inspection Act 1920,

Environment Protection and Biodiversity Conservation Act 1999, National Parks and Wildlife Act 1972

Mining Regulation

Mine Development

Environmental Assessment

Exploration Environmental

Assessment

• Exploration Program • DMITRE Assessment Process • Public notice • Licence Conditions / PEPR

Information

• Mining Lease Proposal • Public Consultation on Mining Proposal • DMITRE Assessment Process • Lease Conditions / PEPR

• Ongoing Communication • Notice of Entry • Declared Equipment

• Waivers • Access Agreements

• Compensation • Native Title

• Stakeholder Identification • Stakeholder Engagement

• Development of Mining Proposal • Ongoing Project Engagement

Mining Act 1971

Under the Mining Act and Regulations all minerals are the property of

the Crown.

The Act provides for:

• The issue of mineral tenements

• Landholder and tenement holder rights with regard to access to

land

• Regulation of mining operations

• Collection of royalties

• Collection of other fees

• Imposition of penalties

• Appointment of inspectors and authorised persons

• Definitions

4

Mining Register

The Mining Registrar is required to keep a register of:

• Registered claims

• Leases and licences issued under the Act

• Instruments registered under the Act

The register must be available for inspection.

There are components of the register which are confidential.

5

Mining Act 1971 – Mining Tenements

In South Australia there is a two step process for undertaking Mining

Operations including exploration:

Granting Mining Tenement:

• Exploration Licence

• Mineral Claim

• Retention Lease

• Mineral Lease

• Extractive Minerals Lease

• Miscellaneous Purposes Licence

Operational Approval:

• Program for Environment Protection and Rehabilitation (PEPR)

6

Current Mining Tenements – 20 May 2014

7

Tenement Type Count Total Area Measurement

Exploration Licence 891 365,072 Square KM

Extractive Minerals Lease 674 16,219 Hectares

Mineral Lease 870 95,816 Hectares

Mineral Claim 95 15,794 Hectares

Miscellaneous Purposes Licence 108 12,371 Hectares

Retention Lease 40 40,087 Hectares

Exploration Licence

• Authorises the licensee, subject to the Act, Regulations and

conditions of the licence to explore for minerals and/or opal other

than extractive minerals

• Maximum area of 1000 km2

• Minimum expenditure commitment imposed

• Excludes the area of current mining tenements when granted such

as existing mineral claims or mining leases

• Application must be accompanied by program of work

• Evidence of financial capacity to fund the commitment

• Technical capability to undertake proposed exploration

• Public notification of grant by the Minister

8

Exploration Licence – Cont.

• Regular reporting required

• Can be renewed up to a term of 5 years

• Licensee can make an application to vary conditions of a licence

• The area of an Exploration Licence can be reduced over the term of

the licence

• All or part of an area of an Exploration Licence can be surrendered

• Licensee has the right to apply for a subsequent Exploration

Licence

9

Exploration Licence - Regulation

• Must have an approved Exploration PEPR (Program for Environment Protection and Rehabilitation) in place before any exploration can be conducted.

• DMITRE developed a Generic PEPR for low impact exploration activities.

• Authorises explorers to conduct low impact activities within scope of the Generic PEPR upon grant of an EL.

• Explorers must be able to demonstrate compliance with the Generic PEPR if requested.

• An exploration PEPR must be submitted to DMITRE for assessment if activities are outside of the scope of the Generic PEPR.

• It must address: the existing land use; topography; vegetation; fauna; groundwater; Aboriginal Heritage; Native Title; soil compaction; erosion; runoff; visual impacts; fire risk; weeds; rubbish and waste; disturbance to cultural or scientific sites; noise; traffic hazards; light; campsites; etc

• Cannot undertake activities which may effect Native Title until a registered Native Title Mining Agreement (NTMA) is in place.

10

Exploration Licences – Regulation cont.

• Impacts from exploration must be rehabilitated.

• Companies must demonstrate how they have complied with the

approved program & DMITRE Guidelines, including rehabilitation

and environmental aspects

• Compliance inspections

• Compliance reporting

• Rehabilitation security bonds

• Coordinated approach across government

11

Discovery to Development

• Before mining, a proponent must:

• Register a Mineral Claim

• Obtain a Mining Lease which sets environmental outcomes

(including mine rehabilitation)

• Have an approved PEPR which sets compliance criteria and

monitoring plan

• Demonstrate company capability to manage operation

• Pay a bond to cover full liability of 3rd party rehabilitation

• Obtain other environmental licences as required (EPA, SafeWork

SA)

• Once operations commence on-going regulation including site

inspections, establishing monitoring networks and submission of

Compliance Reports.

12

Mineral Claim

• Maximum area 250 Hectares (larger with prior consent)

• Usually pegged traditionally with pegs in the ground

• Can be pegged via provision of coordinates collected by a licenced

surveyor

• Mining Operator has 14 days after pegging to register the claim

• Provides exclusive right to prospect for minerals for 12 months

• Apply for a mining lease or retention lease

• Must have prior consent before pegging within the area of an

existing mining tenement (i.e. exploration licence holder)

13

Mining Lease Application

An application for a mining lease must be accompanied by a mining

lease proposal

It must include:

• Description of the environment

• Description of proposed mining operations

• Comprehensive environmental risk assessment

• Measures proposed to manage, limit or remedy the impacts

• Evidence of consultation with stakeholders

• Environmental outcomes expected to occur

• Any further information the Ministers thinks fit

Stakeholder input is critical to shaping any proposal

14

DMITRE’s Assessment approach

• The application is provided to landowners and council within 14 days of formal submission

• Public and Government agency statutory circulation period

• DMITRE collation of comments – request for company response

• Company response to DMITRE

• DMITRE assessment focuses on key risks/impacts

• Consider cumulative impacts and unknowns

• Develop outcomes to be achieved based on values to be protected

• Collaborative approach across government

• Informal and formal consultation processes

• Independent expert advice

• DMITRE and other agency assessment and internal committee review

• Ministerial decision on offer of Mining Lease

• Publication of Minister’s Decision and if a lease is granted the terms and conditions

• If relevant cannot offer the lease until NTMA is registered

15

Native Title Land - NTMA

Part 9B of the Mining Act 1971 (Mining Act) sets out the procedure

which must be undertaken prior to the conduct of mining activities on

‘native title land’.

Part 9B is a successful alternative State scheme to that offered under

the Commonwealth’s Native Title Act 1993.

What is native title land

‘Native title land’ is defined in the Native Title (South Australia) Act

1994 to mean ‘land in respect of which native title exists or might

exist’.

16

Mining Lease - Rights

• A mining lease gives the exclusive right to conduct mining operations and

sell the minerals specified in conditions attached to the lease

• There are two types of mining leases — an extractive minerals lease (EML)

for most construction materials, and a mineral lease (ML) for other minerals

(excluding precious stones).

• Maximum term 21 years depending on information provided in the

application

• Mining Operator is entitled to renewal of a mining lease if the conditions of

the lease and the Act have been complied with

• Regular reporting required

• Cannot undertake any operations until PEPR approved

17

Retention Lease

• Granted when: • For economic or other prescribed reasons is not able to proceed immediately to mine

• Sufficient investigation has not been undertaken to determine the terms and conditions upon which a lease

should be granted

• Application for a Retention Lease must be accompanied by a proposal

• Documentation provided to landowners and council within 14 days of formal

submission

• Public and Government agency statutory circulation period

• DMITRE collation of comments – request for company response

• Company response to DMITRE

• DMITRE and other agency assessment and internal committee review

• Ministerial decision on offer of Retention Lease

• Maximum term 5 years

• Minister may renew a Retention Lease for a further term not exceeding 5 years

• Regular reporting required

• Publication of Minister’s Decision and if a lease is granted the terms and

conditions

• Regular reporting required 18

Miscellaneous Purposes Licence

• Granted for any purpose directly relating to the conduct of mining operations (i.e. haul road and power lines)

• Maximum area of 250 Hectares (larger with prior consent)

• Application for a MPL must be accompanied by a management plan

• Documentation provided to landowners within 14 days of formal submission

• Public and Government agency statutory circulation period

• DMITRE collation of comments – request for company response

• Company response to DMITRE

• DMITRE and other agency assessment and internal committee review

• Ministerial decision on offer of MPL

• Maximum term 21 years depending on information provided in the application

• Mining Operator is entitled to renewal of a MPL if the conditions of the licence and the Act have been complied with

• Regular reporting required

19

Program for Environment Protection and Rehabilitation

Mining operations cannot be carried out until the mining operator has

an approved PEPR:

PEPR includes:

• Details on how agreed environmental outcomes will be achieved –

including rehabilitation and closure

• Final mine, processing plant and infrastructure design details

• Criteria required for measurement of achievement of outcomes –

including rehabilitation and closure

• Leading indicator criteria may be required for high risk areas

• Management Systems – to demonstrate capability and motivation

to comply with agreed outcomes

Mining Operators also requires:

• Payment of a bond (if requested) to cover liability of rehabilitation

• Obtain other environmental licences as required.

20

Performance Based Regulation

• DMITRE has adopted a performance (or outcome-based)

regulatory approach - moving away from prescriptive regulation &

conditioning

• “what” to achieve not “how”

• The focus: to deliver an approach that ensures the operation of an

effective industry, ultimately protecting the environment and the

community.

• Adapted to individual mine sites, ensuring “fit for purpose”

• Based on evidence from the proponent of thorough risk

assessment / management

• Regulation is achieved against agreed outcomes - firm but flexible

• Proponent is responsible for achieving outcomes and must

demonstrate that capability

21

Owner of Land

Includes (but is not limited to):

• freehold landowner

• native title holder or claimant

• pastoral lessee

• a person who controls or manages the land

• a person who is in lawful occupation of the land which includes a

sub-lessee

• crown lease holder in care and control of land ( e.g. a conservation

park)

• holder of a current licence under the Petroleum and Geothermal

Energy Act 2000

22

Entry to Land – Notice of Entry / Access Agreements

The Act provides for two avenues to gain access to land to conduct mining operations by service of Notice of Entry or agreement:

1. Serve the prescribed “Notice of Entry” (Form 21) 21 days prior to entering land

Form 21 must include:

» Reasonable description of activities

» Process of informing

» Rights of objection (Warden’s Court – up to $250k) and compensation

2. Negotiate a land access agreement with the owner of land instead of using Form 21 that includes the conditions of entry

The owner of land under freehold title, or the holder of a native title determination that provides exclusive possession, has the right to object to entry on the land under section 58A of the Act.

23

Notice of Entry - Native Title Land

• If land is not held in fee simple (freehold title), notice of entry must

be served in accordance with section 5 of the Native Title (South

Australia) Act 1994.

• Where there is a native title declaration or registered claim group in

the area, notice of entry must be served to the relevant native title

holders or registered native title claimants and South Australian

Native Title Services Ltd.

• Where there is not a native title declaration or registered native title

claim group in the area, notice of entry must be served to South

Australian Native Title Services Ltd.

24

Exempt Land

Certain land is exempt from mining operations

Examples of exempt land are:

• cultivated fields

• forest reserves

• land within 400 m of a house or 150 m of a water supply

Mining operators cannot commence mining operations on exempt land

until the exemption has been waived (through an agreement or court

order)

Two Step Process to waive exemption:

• Operator serves a waiver of exemption request form (Form 23A)

• Enter into an agreement using (Form 23B) or own agreement

A waiver of exemption may be lodged with the Mining Registrar

25

Declared Equipment

• Declared Equipment includes earthmoving and drilling equipment

• Company must notify (21 days) the owner of land of any intention to

use declared equipment using Form 22 (Notice of use of declared

equipment)

• The owner of land (including the holder of a pastoral lease or a

licence under the Petroleum and Geothermal Energy Act) has the

right to object to the use of declared equipment on the land under

section 59 of the Act

26

Negotiation of Compensation

A landowner is entitled to receive compensation for any economic

loss, hardship and inconvenience suffered as a consequence of

mining operations.

When negotiating the compensation payable consideration should be

given to:

• Any damage caused to the land by the person carrying out the mining operations.

• Any loss of productivity or profits as a result of the mining operations.

• Any other relevant matters.

Compensation may include an additional component to cover

reasonable costs incurred by the landowner in relation to:

• The company gaining access to the land; or

• The activities to be carried out on the land; or

• The general compensation to be paid.

27

Ministerial Consent – Dealings, transfers etc

Dealing (Section 83):

• Any acquisitions of interests (joint venture, transfers etc.) by other

parties require the consent of the Minister after disclosure of all

considerations involved.

• DMITRE requires an original or certified copy of any agreements

etc to be provided when seeking Ministerial consent.

Ministerial Consent

• Ministerial consent is required to transfer any mining tenement

• Mineral claims cannot be transferred

• Mining tenements can be surrendered

• An application for consent must be lodged with DMITRE and

accompanied by the prescribed fee.

28

Questions?

29