The Mining Act 1992 is the principal mining statute of Papua New Guinea. It begins from a single proposition — that all minerals are the property of the State — and builds a licensing system on it.
The structure of the Act
| Part | Subject |
|---|---|
| I | Preliminary — constitutional compliance, definitions, consultation and the development forum, land dispute settlement |
| II | Application — minerals the property of the State, the mineral data repository, land available for mining, reservations, alluvial mining |
| III | Administration — the Mining Advisory Council, the Registrar of Tenements, and Wardens |
| IIIA | Acquisition of State interests |
| IV | Agreements, and mining development contracts |
| V | Tenements — exploration licences, special mining leases, mining leases, alluvial mining leases, leases for mining purposes, mining easements |
| VA | Application for a tenement by a State Applicant |
| VI | Provisions generally applicable to tenements — applications, the Warden’s hearing, registration and dealings, caveats, consolidation, surrender, cancellation, and fees, rents, royalties and security |
| VII | Compensation to landholders |
| VIII | Miscellaneous — information, cores, confidentiality, conflicts with other licensees, right to enter land, offences, regulations |
| IX, X | Repeal, saving and transitional provisions |
Sections 6 to 8 — what land is available
Subject to this Act, all land in the State, including all water lying over that land, is available for exploration and mining and the grant of tenements over it.
The default is that everything is open — customary land, State land, freehold and the water above it. Two provisions qualify that:
- Section 7 — where the Minister considers it in the best interests of the State, he may by National Gazette notice reserve land from exploration or mining, or from the non-mechanised alluvial mining allowed by section 9. A reservation takes effect on publication, and the Registrar must then defer dealing with registered applications over that land until it is revoked or expires. It has no effect on a tenement or application already registered, or on an application for extension of such a tenement. See reservation of land.
- Section 8 — an application for a tenement over land reserved for exclusive use under the Land Act or any other Act may not be granted without the consent of the Minister responsible for that reserved land. Once obtained, no further consent is needed if the tenement is later converted to another tenement.
Section 9 — the citizen’s alluvial mining right
Any natural person who is a citizen may carry out non-mechanized mining of alluvial minerals on land owned by that natural person — provided the mining is carried out safely and in accordance with the Mining (Safety) Act (Chapter 195A), and the land is not the subject of a tenement (other than an exploration licence).
Otherwise, alluvial mining must be done on a tenement (s 9(1)). The right does not stop anyone else applying for a tenement over the land (s 9(3)), and the Minister may reserve land from it under section 7 (s 9(4)). See alluvial mining.
Section 3 — the development forum
A development forum shall be convened by the Minister before the grant of any special mining lease, to consider the views of those the Minister believes will be affected, conducted according to procedures affording a fair hearing to all participants.
The Minister shall invite those he considers will fairly represent the views of: the applicant; the landholders of the land the subject of the application and of other tenements to which the proposals relate; the National Government; and the provincial government of the province concerned.
Before granting any mining lease, the Minister must consult the provincial government of the province where it will be located (s 3(3)). See the development forum.
Section 4 — land disputes do not stop a tenement
Where a dispute arises as to interests in customary land or the position of boundaries of customary land, that dispute shall not affect:
(a) the right of a person to apply for and be granted a tenement; or
(b) the validity of a tenement granted.
Such a dispute is to be settled under the Land Disputes Settlement Act (Chapter 45).
Section 160 deals separately with compensation where there is a land dispute. See also how customary land disputes are decided.
Section 5A — the mineral data repository
The State shall establish and maintain a repository for all mineral and geological data with the Mineral Resources Authority. A tenement holder or any other person in possession of such data shall submit it to the Authority. The State shall establish a central monitoring hub, and every operating mine shall transmit live data on mineral production, extraction and sales to the Authority.
Failure to comply with section 5A: a fine not exceeding K1,000,000.00 or imprisonment for up to four years, or both — with a default penalty of K100,000.00 for every day the offence continues.
The Act does not stand alone
- Environment. Mining is an activity under section 41 of the Environment Act 2000, and a large mine is a level 3 activity requiring full impact assessment. Section 46 of that Act restrains other authorities from issuing approvals before an environment permit issues.
- Safety. The Mining (Safety) Act (Chapter 195A) governs mine safety.
- Land. Surface rights, leases and customary ownership continue under the Land Act 1996 — see land and property.
- Agreement statutes. Particular projects are governed by their own Acts, including the Mining (Bougainville Copper Agreement) Act and the Mining (Ok Tedi Agreement) Act.
- The Authority. The Mineral Resources Authority administers much of the Act; the Mineral Resources Authority (Amendment) Act 2018 is on PacLII.
Section 1 — the constitutional declaration
Section 1 declares the Act to be one made for the purposes of section 38 of the Constitution to the extent that it regulates or restricts qualified rights. And section 5(2) provides that State ownership of minerals is not to be construed as an additional acquisition of property in relation to section 53 of the Constitution beyond what prevailed under the repealed Acts.
Section 171 repeals the earlier mining legislation, and sections 172 to 183 carry forward existing titles, applications, mortgages, consents and compensation agreements.
Sources
- Mining Act 1992 — ss 1–9, 146–150, 154–160, 171–183
- Mining (Safety) Act (Chapter 195A)
- Mineral Resources Authority (Amendment) Act 2018
- Environment Act 2000
- Land Act 1996
- Land Disputes Settlement Act (Chapter 45)
- Constitution — ss 38, 53
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.