Minister steps in amid mine permit fears

Mining Minister Bill Johnston has vowed to safeguard the state’s tenements register amid backlash from industry and legal professionals over a court ruling that threatens to nullify a host of permits.

The landmark ruling, handed down by Warden Genevieve Cleary yesterday, centred around two competing licence applications; one of which was deemed invalid due to insufficient information.

The applicant had outlined its work program and likely expenditure for the next 12 months, a practice common within industry because activity beyond that point often hinges on exploration results.

But Warden Cleary deemed it 'non-compliant', pointing to section 58 of the state’s Mining Act; which requires a comprehensive five-year work program and a budget plan.

The ruling has prompted a swift response from industry, with Association of Mining and Exploration Companies chief executive Warren Pearce telling Business News some companies had sought to protect their assets and investments overnight out of concern for any potential implications for their tenements.

Mr Pearce said the decision had taken industry by surprise and explained that the nature of exploration was difficult to pin down to strict timeframes.

He said the state government was the only body capable of settling the situation.

“Almost universally companies usually put in one year, occasionally more but not much,” he said. 

“It's above everything the industry has traditionally been using and understood to be correct practice, as understood by the department, as understood by the applicants.

“You figure out what you’re going to do across your first year, then you go and do your exploration program, and then you learn what comes out of the ground and then you figure out what you're going to do next,” he explained. 

“Everything about it is adaptable and agile. 

“You learn what you're doing, and then you make decisions about what you've learned out of your drill and assay results.”

Mr Johnston has already vowed to intervene, saying the matter was being taken very seriously and that the integrity of the tenement register was of “prime importance”.

While highlighting that the ruling did not establish a legal precedent, Mr Johnston confirmed the department intended to review the decision and consider its position.

“The Mining Wardens operate independently and decisions are made in an administrative capacity,” he said.

“This will also include a review of the department’s current operational processes regarding s58 statements, as well as the guideline on s58 statements available online.

“The department continues to ensure the security of title and integrity of the register is of prime importance in the administration of the resources industry in Western Australia.

“Industry can be assured the WA government is taking this matter very seriously, and will act to ensure certainty and security of tenure for proponents as needed.”

The decision raised eyebrows among legal professionals, with HopgoodGanim partners Paul Harley and Sarah O'Brien-Smith warning clients overnight that the judgment could have “far-reaching” consequences.

The pair said it was rare for an application to provide a programme of work after the first and second years or to delineate specific target areas.

“Unfortunately, we expect that many exploration and mining companies in Western Australia will be affected by this decision,” the pair said.

“This affects not only exploration licence applications but calls into question the validity of granted exploration licences across the state.”

But Ms O’Brien-Smith said it was important to remember it was a decision of a single Warden, had not been tested by higher courts and was unlikely to be upheld or followed.