Division 7 of Part VI of the Mining Act 1992 is four short sections that carry real consequences for a tenement holder.
Section 146 — fees
The fees in respect of all matters shall be as determined by the Authority from time to time by notice published in the National Gazette.
Fees are set by the Mineral Resources Authority, not by regulation, and take effect on gazettal. Anyone dealing with the Act should check the current National Gazette notice rather than relying on an older schedule.
Fees arise at many points: with an application (verified at the preliminary examination under section 101(e)); the late fee under section 99 for an extension lodged less than 90 days before expiry, which is equal and additional to the prescribed fee; with an instrument lodged for registration under section 114(1); and with a caveat under section 127(2)(d).
Under section 95D(3), no fees shall be imposed on an application by a State Applicant under Part VA.
Section 147 — rent
In respect of each tenement the prescribed rent shall be paid annually in advance from the date of grant, except as provided for in section 111(1)(b).
On the grant or extension of a tenement, the Registrar shall require the applicant to submit the prescribed rent within 30 days (s 111(1)(b)) and, on a grant, to lodge the prescribed security within 30 days (s 111(1)(c)).
Where the applicant fails to comply with either, the Minister may cancel the grant or extension (s 111(2)). Only on compliance does the Registrar issue the title document (s 111(3)).
So the tenement is not secure on the day the Minister decides. It is secure when the rent is paid and the security lodged.
Rent is payable annually in advance thereafter. Non-payment is a breach of the Act, and under section 142(1)(a) the Managing Director may require the holder to show cause why the tenement should not be cancelled.
Section 148 — royalties
Royalties for mine products shall be paid in accordance with the provisions of this Act.
The detail sits in the Mining (Royalties) Act 1992, which is referred to in section 154(4) and in section 161(2)(e). See royalties.
Under section 154(4), no compensation is payable and no claim lies in consideration of permitting entry, in respect of the value of any mineral, or by reference to any rent, royalty or other amount assessed in respect of the mining of the mineral — other than as provided in the Mining (Royalties) Act.
And under section 154(5), a person who pays or agrees to pay such compensation commits an offence carrying up to K10,000 or five years’ imprisonment.
So a landholder’s entitlement is built from the section 154 heads — loss of use, surface damage, severance, rights of way, improvements, lost earnings, disruption of agriculture and social disruption. Anything production-linked belongs to the royalty regime.
The Mining (Royalties) Act 1992 is not carried in the PacLII Papua New Guinea legislation databases. It is named here rather than linked, so that no unverified link is given.
Section 149 — nothing is refundable
The fees and rents payable under this Division shall not be refunded.
Not on refusal of an application, not on surrender, not on cancellation, and not where a survey shows that only part of the land applied for is available. Rent is paid annually in advance, and surrendering part-way through a year does not produce a rebate.
The security is different. Under sections 139(2), 143(2) and 144(2), on surrender, cancellation or expiry the Registrar deducts from the security any fee, rent, royalty, compensation, penalty or other money payable, and the Authority’s costs of ensuring other liabilities are met, and remits the balance to the former holder.
Where unpaid money is recovered from
| Unpaid | Consequence |
|---|---|
| Rent or security within 30 days of grant | The Minister may cancel the grant or extension — s 111(2) |
| Rent thereafter | Breach of the Act — show-cause notice and possible cancellation under s 142 |
| Compensation | Blocks extension of an exploration licence (s 28(1)(b)); a breach of a tenement condition under s 159(c); and deducted from the security |
| Fees, royalty, penalties | Deducted from the security before any balance is remitted |
| Other liabilities | The Authority’s costs of ensuring they are met are also deducted |
Why this matters to landowners
- Rent and fees go to the State, not to the landholders. Your entitlement is compensation under Part VII.
- Unpaid compensation is deducted from the security — so get the amount fixed and recorded, by a registered agreement or a Warden’s determination.
- Tell the Registrar in writing of any outstanding compensation before a tenement is surrendered or expires.
- Watch the extension cycle. Non-payment of compensation is a reason the Council may not advise extension, on the Chief Warden’s advice.
- Never accept a payment for permitting entry — it is not compensation, and paying it is an offence.
Sources
- Mining Act 1992 — ss 28, 95D, 99, 101, 111, 114, 127, 139, 142–150, 154, 159, 161
- Mineral Resources Authority (Amendment) Act 2018
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.