Mining Act changes aim to clear backlog

Key amendments to the Western Australian Mining Act are expected to pass through State Parliament this week, with the prime objective of the amending bill to reduce the backlog of mineral tenement applications currently in the system.

According to the State Government it is the most significant overhaul of laws governing mining in Western Australia in more than 25 years and takes into consideration a number of reviews and reports on the State’s mining industry.

Mining groups have welcomed the new bill, which was stalled in June. The mining industry opposed proposed changes relating to Native Title and environmental issues.

The new amendments have been developed with the consultation of both mining lobby groups and Native Title claimant representatives.

Primarily, the amendments hope to remove the backlog of more than 5,000 mining lease applications by allowing a mining lease applicant to apply for an exploration/prospecting licence over the same land.   

To hold on to prospective ground, a practice of applying for mining leases over prospecting leases at the end of term and over drop-off areas for exploration licences has developed.

Under the current system half an exploration licence is granted for five years. After three years, half of it must be relinquished. A further half must be relinquished in another year, although exemptions can be applied for.

However, while exploration licences will now remain for five years, the amendments will introduce the ability to extend the licence for one further period of five years.

Almost half of the licence will then be required to be surrendered before the end of the five-year term, but licence holders will then have the ability to extend the licence by periods of two years indefinitely under an escalating cost regime.  There are also changes to a mining lease application.

An application for a mining lease now needs to be lodged with a mineralisation report and a statement containing details of the mineralisation and the measures to be taken to mine the resource. 

Both the Chamber of Minerals and Energy and the Association of Mining & Exploration Companies have given their in-principle support to the changes and urged bipartisan support of the bill.

While the bill has passed through the lower house and has reached committee stage in the upper house, a key member of the Opposition still has reservations about key aspects.

Leader of the Opposition in the Legislative Council, Norman Moore, said although he was concerned about minor parts of the bill, he would like to see it pass provided there was a review process.

“I am happy to give it go,” Mr Moore said.

There is a planned five-year review of the amended act.

Mr Moore said he was seeking the removal of one clause regarding the inclusion of a mineralisation report. He said this may allow Native Title groups to gain access to the value of a potential mine before a licence had been granted, ultimately affecting the type of claims claimant groups put forward.

State Development Minister Clive Brown said the claimant groups already had access to this information through a drawn-out legal process, which itself was creating delays. 

Mr Moore said he was concerned about the advantage major companies with large cash reserves may receive through the escalating rent system on exploration licences.