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What Must a Tenement Holder Report?

Six-monthly work and expenditure reports on an exploration licence, monthly production reports on a mining lease, annual technical reports on both — and a final report on surrender or expiry that any person may read and copy.

The mining law series, no. 38 · Royalties, agreements and benefits · 6 min read

Reporting is how the State keeps track of what is happening on its minerals. Sections 32 and 47 of the Mining Act 1992 set the cycle.

Section 32 — exploration licence reports

Reports required for an exploration licence
ReportPeriodDeadline
(a)Work report on the prescribed form, summarising all works undertaken since the last reportEvery six months from grant; also on expiry, cancellation and on applying to surrender30 days
(b)Expenditure report on the prescribed form, summarising all acceptable expenditure under section 25(2)Every six months; and on expiry, cancellation and surrender application30 days
(c)Annual technical report giving full details of all work, so as to convey accurately and comprehensively the aims of the works, the procedures adopted and the conclusions reached, and containing all data which may be of relevance to the geology and mineral resources of the StateEvery year from grant90 days
(d)Final report summarising all work on the whole or the relinquished or surrendered portion since the date of grant, and meeting the paragraph (c) requirements since the last reportTo the date of relinquishment, surrender, expiry or cancellation90 days
The expenditure report is the compliance report

Section 25(1) requires a prescribed minimum expenditure annually in connection with the approved programme. Section 25(2) confines acceptable expenditure to what is directly connected with the acquisition and interpretation of exploration data from the licence area, including related laboratory and feasibility work — and section 25(3) excludes the purchase of a tenement and the purchase of land or buildings.

The section 32(1)(b) report is where that is demonstrated. It feeds directly into extension under section 28, which depends on the Council advising that the holder has complied with the conditions.

Section 47 — mining lease reports

Reports required for a mining lease
ReportPeriodDeadline
(a)Production report on the prescribed form, detailing production of minerals — quantity and value of ore mined or treated, and quantity and value of minerals recoveredEach calendar month from grant30 days
(b)Annual report giving full details of all work, including production, development work, exploration and all other information reasonably thought relevant to the geology and mineral resources of the StateEach year from grant90 days
(c)Final report summarising all work and all production since the date of grant, and meeting the paragraph (b) requirements since the last such reportTo the date of surrender, expiry or cancellation

Similar reporting requirements apply to the other tenements: section 56 for an alluvial mining lease, section 74 for a lease for mining purposes, and section 89 for a mining easement.

Which reports are confidential, and which are public

Confidentiality of reports
ReportStatus
s 32(1)(a), (b) — exploration work and expenditureNot to be made available outside the Authority, nor its content revealed — except so far as necessary to publish statistical information about the country’s geology and mineral resources, or to advise the National Executive Council on a confidential basis (s 32(3))
s 32(1)(c) — annual technical reportSame protection, until the licence has expired or been cancelled or surrendered — or with the holder’s consent (s 32(4))
s 32(1)(d) — final reportAvailable for perusal and copying by any person (s 32(6))
s 47(1)(a) — monthly productionNot to be made available outside the Authority, subject to the same statistical and NEC exceptions (s 47(3))
s 47(1)(b) — annual reportProtected until the lease has expired or been surrendered or cancelled, or with consent (s 47(4))
s 47(1)(c) — final reportAvailable for perusal and copying by any person (s 47(5))
The bargain, and its end point

An explorer or miner gets confidentiality while the tenement lasts. Once it ends — by expiry, surrender or cancellation — the final report becomes public, available for perusal and copying by any person.

That is what makes relinquished and expired ground usable by others, including a State Applicant under Part VA. It also means the technical history of a project eventually enters the public record.

Section 32(5) — conversion to a lease

Where an exploration licence has been converted to a special mining lease or a mining lease, a report lodged under section 32(1)(c) is deemed to be a report lodged under section 47(1)(b) — so the technical record carries across without a gap, and takes the confidentiality status of a mining lease annual report.

  • Section 5Aall mineral and geological data must be submitted to the Authority’s repository, and every operating mine must transmit live production, extraction and sales data to a central monitoring hub. Penalty: up to K1,000,000, four years, and K100,000 per day.
  • Section 161 — the Managing Director may require anyone reasonably believed to hold geological, geotechnical or hydrogeological information to provide it; and the Minister or Managing Director may require documents relating to dealings, to mining and exploration activities, and to the royalty legislation. Refusal: K10,000.
  • Section 162cores and drilling samples must be preserved, and provided to the Authority on request at the holder’s cost.
  • Section 163 — the general confidentiality rule, and the offence of using information for personal gain.
  • Environment. A permit may require monitoring programmes, reports and audits, and each monitoring and management report goes on the Environment Register, open to any person at all reasonable times.

What happens if reports are not lodged

  1. Breach of the Act — under section 142(1)(a) the Managing Director may require the holder to show cause why the tenement should not be cancelled.
  2. Extension at risk — under section 28(1)(a) the Council must advise that the holder has complied with the conditions of the licence during the previous term.
  3. General penalty — section 168(2): up to K3,000 or three months, with a daily default penalty of up to K300 after conviction for a continuing offence.
  4. Security — penalties and the Authority’s costs are deducted from the security on surrender, cancellation or expiry.
For landholders

You cannot obtain the confidential reports while the tenement runs. What you can do is ask, at an objection to an extension, whether the holder has met its expenditure and reporting obligations and paid compensation — both of which the Council must be satisfied about under section 28. And once the tenement ends, the final report is public.

Sources

Check the section yourself

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.

Disclaimer: This article provides general information about Papua New Guinea law and does not constitute legal advice. Laws may change, and their application depends on individual circumstances. You should obtain professional legal advice for your specific situation. Read the full disclaimer.