Of the six tenements in the Mining Act 1992, the alluvial mining lease is the only one reserved for the people who own the ground.
Section 48 — who may hold one
The Minister may, on the application of a natural person who is a citizen or of a land group, in respect of land owned by that natural person or land group, and after considering a recommendation from the Council, grant an alluvial mining lease over that land to that natural person or land group.
Who — a natural person who is a citizen, or a land group. Not a company, not a non-citizen, not a joint venture.
Where — only over land owned by that person or group. You cannot obtain one over someone else’s land.
The land group option makes this the natural tenement for a clan working its own river. An incorporated land group under the Land Groups Incorporation Act can hold the lease collectively, and its constitution governs how the proceeds are shared.
Under section 48(2), an alluvial mining lease shall not be granted over land subject to an existing tenement — except as provided in sections 59 and 90, which allow one over land subject to an exploration licence or a mining easement.
Section 48(3): the lease shall be on the prescribed form, shall require compliance with the approved proposals as a condition, and may include such other conditions as the Minister determines.
Sections 49 and 50 — term, area and depth
| Limit | |
|---|---|
| Term (s 49) | Not exceeding five years, extendable under section 55 |
| Where (s 50(1)) | Only over land that is a river bed, and land extending no further than 20 m from any river bed |
| Area (s 50(2)) | Not more than 5 ha, in a rectangular or polygonal shape |
| Depth (s 50(3)) | Only to a depth consistent with the safe conduct of the mining development described in the approved proposals, and the depth shall be specified on the lease document |
Section 50(3) is unusual: the tenement is granted to a specified depth, fixed by reference to safe conduct of the described operation. Read the depth on the lease document before deepening a working — going below it is mining outside the tenement.
It is a safety provision as much as a property one. Deaths in alluvial workings come overwhelmingly from collapsing faces and pit walls, and the Mining (Safety) Act (Chapter 195A) applies in full.
Section 51 — the rights conferred
(a) enter and occupy the land for the purpose of mining alluvial minerals only located on that land, carry on such operations and works as are necessary or expedient, and treat those alluvial minerals;
(b) take and remove rock, earth, soil and alluvial minerals from the land, with or without treatment;
(c) take and divert water on or flowing through the land for mining or treatment; and
(d) do all things necessary or expedient for alluvial mining or treatment on that land.
The holder (a) is entitled, for alluvial mining purposes, to the exclusive occupancy of the land; and (b) owns all alluvial minerals derived from alluvials lawfully mined from that land.
Note the confinement to alluvial minerals only. This is not a general mining lease: hard-rock mining on the same ground would require a mining lease. Water rights under paragraph (c) are now governed by Part VII of the Environment Act 2000.
Section 52 — the application
(a) be on the prescribed form with either a schedule describing the corners in latitude and longitude plus a sketch map, or a survey under section 97;
(b) be accompanied by the applicant’s proposals; a statutory declaration that the area has been marked out under section 96; and a statutory declaration to the effect that the applicant is an owner of the land;
(c) be lodged in triplicate with the prescribed fee; and
(d) be lodged in accordance with Division VI.1.
Paragraph (b)(iii) requires a statutory declaration that the applicant is an owner of the land. Where ownership is contested, that declaration is where the dispute surfaces — and a false statutory declaration has serious consequences.
Recall section 4: a dispute about interests in, or boundaries of, customary land does not affect the right to apply for or be granted a tenement. Such disputes are for the Land Disputes Settlement Act (Chapter 45). Groups should settle membership and boundaries before applying.
Sections 57 and 58 — no transfer, no consolidation
Section 57 — no transfer or other dealings in an alluvial mining lease.
Section 58 — no consolidation of an alluvial mining lease.
These follow from section 48(1). A tenement granted to a citizen or land group over their own land would lose its point if it could be sold on to a company or merged into a larger holding. It is meant to stay where it was granted.
The practical consequence: an alluvial mining lease cannot be used as security or sold. Where outside capital or equipment is needed, the arrangement has to be structured as a service or contracting arrangement with the holder — and advice should be taken, because an arrangement that in substance transfers the lease offends section 57.
Sections 59 to 64 — where an exploration licence covers the land
An alluvial mining lease may be granted over land subject to an exploration licence (s 59). The Act then gives the licence holder a structured say:
- Section 60 — the effect of the alluvial mining lease on the exploration licence.
- Section 61 — the Registrar shall notify the holder of the exploration licence of the application.
- Section 62 — the licence holder may object.
- Section 63 — an objector shall be given notice of the meeting of the Council that considers it.
- Section 64 — the licence holder may elect to negotiate instead.
An exploration licence over your land does not prevent an alluvial mining lease. It gives the explorer notice, an objection, and an opportunity to negotiate — but the decision remains the Minister’s, on the Council’s recommendation.
Applying as a landowner group
- Settle ownership and membership first — consider incorporating a land group.
- Check the tenement position with the Registrar of Tenements.
- Mark out the area under section 96 and prepare the schedule and sketch map.
- Prepare realistic proposals — they become a binding lease condition, and they fix the permitted depth.
- Swear the two statutory declarations carefully.
- Deal with the environment — the general environmental duty applies to everyone, and river work engages Part VII of the Environment Act.
- Plan for the obligations — rent, royalty, the section 150 security within 30 days of grant, and reporting under section 56.
- Diary the five-year term and apply for extension under section 55 before it ends.
Sources
- Mining Act 1992 — ss 4, 9, 38, 48–64, 90, 96, 97, 150; Part V Division 4
- Land Groups Incorporation Act — PacLII 1986 Revised Edition
- Land Disputes Settlement Act (Chapter 45)
- Mining (Safety) Act (Chapter 195A)
- Environment Act 2000
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.