Mining and Resources Law FAQ

Minerals in Australia are generally owned by the Crown (state). Private landowners own the surface but not the minerals beneath. Some historical freehold titles retain mineral rights, and gold and petroleum have historically been reserved to the Crown.

A mining tenement is a statutory grant that authorises exploration, mining, or related activities. Types include exploration licences, mining leases, miscellaneous licences, and prospecting licences. Terminology and conditions vary by state.

Typically: application, assessment under the relevant state mining Act, compliance with the Native Title Act future act regime (usually right to negotiate), environmental approvals, and grant by the Minister. Conditions cover security, rehabilitation, and reporting.

Under the Native Title Act, grant of a mining tenement over land subject to registered native title generally triggers the right to negotiate — a 6-month good-faith negotiation period, followed by arbitration at the NNTT if no agreement. Section 31 agreements commonly resolve the process.

A s 31 agreement is an agreement between a native title party, a grantee party, and the state under the Native Title Act that allows a future act (typically mining tenement) to proceed. It operates as a consent that validates the act without an ILUA.

Both can validate a future act. ILUAs are registered agreements binding all native title holders and are often used for broader project packages. Section 31 agreements are negotiated for individual tenements. Choice depends on deal complexity, registration timing, and scope.

State approvals under the relevant planning and environment Acts (e.g. EP&A Act NSW, Planning Act Qld), state EPA licensing for pollution, and federal EPBC Act approval if MNES are affected. Water licences, biodiversity offsets, and waste approvals are also often required.

A cash or bank guarantee security lodged with the state to cover rehabilitation obligations if the miner does not complete them. Calculation varies by state — NSW uses rehabilitation cost estimates, Queensland uses the Financial Provisioning Scheme, WA uses the Mining Rehabilitation Fund.

Royalties are state-based and vary by commodity and state. They may be ad valorem (percentage of value), profit-based, or specific rate. Coal, iron ore, and petroleum royalties are material revenue items for state budgets and are regularly reviewed.

Yes. Foreign investment in mining tenements and resource assets typically requires FIRB approval under the Foreign Acquisitions and Takeovers Act. Thresholds, and whether any transaction is "notifiable", depend on investor type (foreign government investor vs private), commodity, and value.

The JORC Code is the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. ASX-listed mining companies must report in accordance with JORC. The Competent Person signing the statement bears personal responsibility for the disclosures.

A tenement granted over land already subject to another tenement, often of a different type (e.g. gas tenement over coal exploration licence). State mining Acts contain overlap rules establishing which tenement holder has priority for which activities.

Land access is the right (under state mining law) to enter and conduct activities on freehold or leasehold land where the tenement has been granted. Most states require a land access or compensation agreement with the landholder, with arbitration backstops.

From discovery to first production, 7–15 years is common. Exploration licence 2–5 years, pre-feasibility and feasibility 2–4 years, approvals 2–5 years, construction 1–3 years. Timing is highly commodity and jurisdiction specific.

Tenements and conditions, native title agreements (ILUAs, s 31), land access agreements, approvals (state and federal), JORC reports, reserve statements, rehabilitation plans, royalty and financial assurance documents, and mining joint venture or farm-in agreements.

An earn-in agreement under which one party (farminee) spends money on exploration or development in exchange for acquiring an interest in the tenement. Common in exploration joint ventures. Trigger events and minimum expenditure are the key commercial terms.

Coal and metalliferous mine safety is regulated at state level — in NSW under the Work Health and Safety (Mines and Petroleum Sites) Act; in Queensland under the Mining and Quarrying Safety and Health Act and the Coal Mining Safety and Health Act; in WA under the Work Health and Safety Act and Mines Safety and Inspection Act (until repealed).

Mining law generally covers minerals (metals, coal, gemstones); petroleum law covers oil, gas, and related hydrocarbons. Each state has separate mineral and petroleum statutes. Tenement types, royalty regimes, and native title procedures differ between the two.

EIS-level environmental assessment typically $1–$10m depending on project scale. Native title and land access agreements $500k–$5m. Legal and technical advisors $1–$5m+. Small operations lower; tier-1 projects substantially more.

Before tenement application, before any land entry, before any native title engagement, on draft approval conditions, on JV and farm-in term sheets, and on royalty and rehabilitation calculations. Early advice typically avoids the most expensive mistakes.