Divisions 4 to 6 of Part VI of the Mining Act 1992 deal with the four ways a tenement comes to an end.
Sections 130 to 136 — consolidation
The Minister may, on the application of the holder of two or more adjoining tenements of the same type, and after considering a recommendation from the Council, grant one or more consolidated tenements of that type.
| Section | Rule |
|---|---|
| 131(2)(b) | Carries the conditions attached to the existing tenements; where they differ, such of them as the Minister determines on the Council’s advice |
| 131(3) | May be granted without a Warden’s hearing |
| 132 | Term is the unexpired term of the existing tenements — or, where they differ, the shorter or shortest |
| 133 | Area shall not exceed the maximum specified for a tenement of that type |
| 134 | On grant, every right, title and interest under the existing tenements passes to the consolidated tenement |
| 58 | An alluvial mining lease may not be consolidated |
Consolidation may proceed without a Warden’s hearing. That is defensible where nothing changes on the ground — the same holder, the same land, conditions carried across — but it means landholders will not necessarily be heard on it.
Watch instead for what the consolidation does to the conditions under section 131(2)(b): where the existing tenements carried different conditions, the Minister chooses which survive.
Sections 137 to 141 — surrender
Subject to this Act, the holder of a tenement may apply to the Registrar on the prescribed form to surrender the tenement in whole or in part.
A partial surrender must be supported by documents identifying the land to be retained (s 138): for an exploration licence, a schedule in latitude and longitude complying with section 22 and a sketch map; for any other tenement, a survey under section 97 and a statutory declaration of marking out under section 96.
The Registrar shall satisfy himself that the holder has complied with any conditions of the tenement relating to the cessation of exploration and mining operations, restoration of the land and surrender — and immediately thereafter register the surrender, certify it, endorse a partial surrender on the title document, publish notice in the National Gazette, keep a copy posted at the headquarters of the Authority for 30 days, and send a copy to the applicant.
Section 139(1) makes compliance with the cessation and restoration conditions a precondition to registering a surrender. Section 140 then provides that surrender does not affect the holder’s liability to pay rent, fees, royalty, penalties or other money, to perform any obligation, or for any act done or default made on or before the date of surrender.
Section 141 completes the picture: on registration of the surrender, every right, title and interest in the surrendered land absolutely ceases and terminates.
Section 142 — cancellation for breach
(1) Where the holder breaches (a) a provision of this Act or (b) a condition on which the tenement was granted, the Managing Director may, by written notice, require the holder to show cause within the time specified why the tenement should not be cancelled.
(2) Where the holder fails, in the opinion of the Minister after receiving a recommendation from the Council, to show cause, the Minister may cancel the tenement.
(3) Where a mining development contract has been entered into, the tenement shall not be cancelled unless the contract has been terminated.
Failure to lodge the security is expressly a breach for the purposes of section 142(1)(a) (s 150(2)). So is failure to comply with the approved programme or proposals, which is a mandatory condition of every tenement. Failure to pay rent or lodge the security within 30 days of grant separately allows the Minister to cancel the grant under section 111(2).
And under section 100(6), where the Registrar finds that a successful ballot applicant was an associated person of another applicant in the same ballot, he shall cancel the grant.
Sections 143 to 145 — cancellation, expiry, and the security
On surrender, cancellation or expiry, the Registrar shall, after deducting from the security:
(a) any fee, rent, royalty, compensation, penalty or other money payable on or before that date; and
(b) any costs incurred by the Authority in ensuring that any other liabilities are met,
remit the balance, if any, to the former holder.
Unpaid compensation is deducted from the security before anything is returned. That is a real protection for landholders when a tenement ends — and a reason to have compensation agreed and registered under section 156, or determined by a Warden under section 157, so that the amount is established and provable.
Paragraph (b) is wider still: the Authority may recover the costs of ensuring that any other liabilities are met.
Under section 145, on cancellation or expiry all rights conferred by the tenement cease, but a liability incurred before then is not affected. Section 144(1) requires the Registrar to register the expiry immediately.
What happens to the ground and the plant
- Section 152 — removal of mining plant, ore, tailings and other property on expiry, surrender or cancellation.
- Section 29(4) — where a special mining lease or mining lease ends, land excised from an exploration licence reverts to that licence, or is amalgamated with a surrounding tenement.
- Section 30 — no valid application for an exploration licence over the same land for 30 days after it ceases to be subject to the licence.
- Part VA — ground that has expired, been cancelled, surrendered or relinquished may be reserved under section 7 and taken up by a State Applicant, whose application has priority under section 7(6).
- Environment. The environment permit is separate, with its own suspension and cancellation regime, and rehabilitation and bond obligations under sections 66 and 99 of the Environment Act 2000.
What landowners should do when a tenement is ending
- Get your compensation claim quantified and on the record — agreed and registered, or determined by a Warden — before the tenement ends.
- Tell the Registrar in writing of any unpaid compensation, so it can be deducted from the security.
- Watch for the National Gazette notice of surrender or cancellation, and the copy posted at the Authority for 30 days.
- Ask about restoration — section 139(1) requires the Registrar to be satisfied that the cessation and restoration conditions have been complied with before a surrender is registered.
- Ask what happens to the plant and structures under section 152.
- Check the environment obligations, which do not end with the tenement.
- Get advice — the Public Solicitor, or a firm from the law firms directory.
Sources
- Mining Act 1992 — ss 7, 22, 29, 30, 58, 96, 97, 100, 111, 130–145, 150, 152, 154–157; Part VI Divisions 4–6
- Environment Act 2000 — ss 66, 72, 99
- Mining (Safety) Act (Chapter 195A)
Before relying on anything here, read the current text of the Mining Act 1992 and check for later amendments. If a decision matters to you, get advice — start with the Office of the Public Solicitor, or find a firm in the law firms directory.