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Who Decides Whether to Grant a Mining Tenement?

The Minister — or, for a special mining lease, the Head of State acting on advice — after considering a recommendation of the Mining Advisory Council. The Council may recommend grant, refusal, or send the applicant back to revise its proposals.

The mining law series, no. 22 · Applying for and holding a tenement · 5 min read

Section 110 of the Mining Act 1992 sets out how every tenement application is decided.

Section 110(1) to (3) — the material

Section 110(1) — the Council shall review and consider

(a) the report under section 103(b)(ii);

(b) the reports of officers under section 104;

(c) the Warden’s report on the hearing under section 109;

and any report submitted by a provincial government advised of the application under section 106(a).

Section 110(2) — and the objections

(a) objections by existing tenement holders under sections 62(1) (alluvial mining lease), 78(1) (lease for mining purposes) and 94(1) (mining easement); and

(b) objections received under section 107 — the general public right.

Section 110(3) — and the applicant’s own plan

For an exploration licence — the programme submitted under section 24.

For a special mining lease, mining lease, alluvial mining lease, lease for mining purposes or mining easement — the proposals submitted under sections 35, 42, 52, 70 or 85 respectively.

Section 110(4) — the three possible recommendations

The Council's options under section 110(4)
RecommendationWhat follows
(a)Recommend the grant or extensionThe Minister — or the Head of State, acting on advice — decides
(b)Recommend refusalThe application is refused
(c)Defer further consideration and request the applicant to amend the application or provide further information or revised programmes or proposals under sections 26, 43, 53, 71 or 86, within a reasonable time specifiedThe Executive Officer notifies the applicant in writing (s 110(5)); failure to comply in time allows the Council to recommend refusal (s 110(6))
Paragraph (c) is where objections do their work

Outright refusal is rare. What a well-evidenced objection and a well-run Warden’s hearing most often produce is a deferral under section 110(4)(c), with the applicant sent back to revise the programme or proposals.

That is the point at which a road can be moved, a camp relocated, a water source or burial ground protected, or an area reduced — and, because compliance with the approved programme or proposals is a mandatory condition of the tenement, whatever is written in becomes enforceable.

So frame objections in terms of what should change, not only that the tenement should be refused.

Who makes the final decision

Who grants each tenement
TenementGranted bySection
Exploration licenceThe Minister, after considering a Council recommendations 20(1)
Special mining leaseThe Head of State, acting on advice, after considering a Council recommendations 33(1)
Mining leaseThe Ministers 38(1)
Alluvial mining leaseThe Ministers 48(1)
Lease for mining purposesThe Ministers 65(1)
Mining easementThe Ministers 80(1)
Tenement to a State ApplicantThe Head of State, acting on the advice of the Minister, consistent with the Council’s recommendations 95E(1)

Two additional requirements apply before particular grants:

  • a development forum must be convened before the grant of any special mining lease (s 3(1)); and
  • the Minister shall consult the provincial government before granting any mining lease (s 3(3)).

Section 44 separately deals with refusal to grant a mining lease, and section 28(2) allows the Minister to refuse to extend an exploration licence where he considers it in the best interests of the State.

Section 111 — what happens on grant

Upon grant or extension, the Registrar shall

(a) advise the applicant of the Minister’s decision;

(b) require the prescribed rent within 30 days;

(c) on a grant, require the prescribed security within 30 days; and

(d) publish notice of the grant or extension in the National Gazette.

Failure to pay the rent or lodge the security allows the Minister to cancel the grant or extension (s 111(2)). On compliance, the Registrar issues a title document on the prescribed form (s 111(3)).

Under section 112, where an extension is applied for before expiry, the tenement continues in force until the application is determined, and the extended term is deemed to have commenced the day after it would otherwise have expired.

If you disagree with the decision

The Mining Act contains no general merits appeal against a decision to grant a tenement. What is available is:

  1. The processes before the decision — objection, hearing, provincial report and, for a special mining lease, the development forum. Use them.
  2. Compensation, which is separate: a Warden’s determination under section 157, with an appeal under section 158.
  3. Judicial review in the National Court where a decision is affected by legal error — under Order 16 of the National Court Rules and section 155(4) of the Constitution, read with section 59 (natural justice) and section 41.
  4. The environment process, which has its own review by the Environment Council within 21 days and an appeal to the National Court on a question of law.

Get advice quickly — the Public Solicitor, or a firm from the law firms directory.

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.