Fact Sheet South Australia’s new mining laws - Mining Act 1971 GUIDE FOR EXPLORERS ____________________________________________________________________________ NEW LAWS APPLY FROM APRIL 2011 The Mining (Miscellaneous) Amendment Bill 2010 passed through both Houses of Parliament on 9 November 2010. As the Bill is currently waiting to be assented to, and new Mining Regulations are being drafted, the commencement date of April 2011 is a guide only. INTRODUCTION The Mining (Miscellaneous) Amendment Bill 2010 introduces amendments to the Mining Act 1971 to reflect the State Government’s commitment to its principles of effective and efficient regulation of our mineral resources sector through best practice management of South Australia’s mineral assets. The exploration and mining sectors require well defined procedures for access to land, security of exploration and/or mining tenure and predictable regulatory processes, in order to commit to higher risks for investment in mineral resource exploration, new mine development and life-of-mine operations. Landholders and communities require clear and timely advice on their rights under the Mining Act 1971 and on the responsibilities of exploration and mining companies who are seeking to access their land. The amendments to the Mining Act 1971 achieve these objectives by: Reducing Red Tape – Repealing and amending legislative requirements that impede industry in the conduct of normal business operations. Greater Transparency – Requiring industry to provide more information on proposed and current mining operations and improve notification protocols for access to land for landholders and the community. The amendments also introduce greater transparency in the Government’s approvals processes. Effective Regulation – Introducing new regulatory and compliance tools, and strengthened powers for authorised officers to ensure the Government’s regulatory body has the appropriate powers to achieve effective and efficient compliance. KEY FEATURES This Guide for Explorers covers the key features of the new laws which shall apply to explorers including: Application Assessment Programs for Environmental Protection and Rehabilitation Common Regulations Compliance and Enforcement Landowner Related Rights & Obligations As this Guide focuses on key features only, PIRSA recommends that you refer to the Bill (www.pir.sa.gov.au/minerals) for a comprehensive overview of the new laws. Application The amendments introduce new provisions in relation to the application for exploration licences. Land that becomes vacant for application shall be officially released through SARIG for a specified period of time. All applications received within the specified timeframe shall be assessed by a merit-based assessment process. If no applications are received within the specified timeframe, any application received after that time shall be assessed on a ranking basis. Assessment In determining the conditions subject to which a licence shall be granted, to the extent it is necessary or appropriate in a particular case, relevant consideration shall be given to the protection of any aspect of the environment that may be affected by the proposed mining operations; any other lawful activities that may be affected by those operations; and any 1 Aboriginal sites or objects that may be affected by those operations. The new definition of “environment” includes: (a) land, air, water (including both surface and underground water and sea water), organisms, ecosystems, native fauna and other features or elements of the natural environment; and (b) buildings, structures and other forms of infrastructure, and cultural artefacts; and (c) existing or permissible land use; and (d) public health, safety or amenity; and (e) the geological heritage values of an area; and (f) the aesthetic or cultural values of an area. In relation to a particular mining tenement, paragraphs (c) and (e) apply according to the circumstances existing at the time that the tenement is (or was) granted. (6) This definition does not apply to or in relation to Parts 9B or 11B. Programs for Environmental Protection and Rehabilitation The holder of an exploration licence cannot carry out mining operations unless they have an approved Program for Environmental Protection and Rehabilitation (PEPR). A PEPR must set out: The proposed mining operations The environmental outcomes The criteria to measure those environmental outcomes The ability of the holder to achieve the environmental outcomes Any information required by licence conditions or by the regulations PEPRs will be publically available (commercial information will remain confidential). On application a PEPR may relate to more than one licence. All existing Exploration Work Approvals and Declarations of Environmental Factors shall be deemed to be PEPRs upon commencement of the new laws. Common Regulations New common regulations which shall apply to all licences include: Upon request a licence holder must provide information on the licensee’s capability and competence to comply with the Act, licence conditions and the PEPR. A licensee must prepare an annual Compliance Report in accordance with the regulations. A licensee must maintain public liability insurance. COMPLIANCE AND ENFORCEMENT Authorised Officer The Minister may appoint a Public Service employee to be an Authorised Officer. The appointments may be conditional or with limitations. An Authorised Officer will be issued with an identity card which must be produced on request. An Authorised Officer has the power to undertake an Authorised Investigation. Authorised Investigation The purpose of an Authorised Investigation is to gather information for: A suspected offence against the Act Personal injury or loss of property related to mining operations Actual/potential environmental impact The administration or enforcement of the Act and to monitor compliance with the Act. Powers of entry and inspection When carrying out an Authorised Investigation an Authorised Officer may: Enter land, inspect land and any operations or activities conducted on the land Examine anything on the land Take photographs, films or videos Carry out tests on mines, facilities and equipment Take and remove samples Take and remove anything that may be evidence of non-compliance with the Act. Production of records An Authorised Officer may require a person to produce records for inspection or answer any questions regarding the records, relevant to an investigation. Directions to prevent or minimise environmental damage Where mining operations are being conducted in a way which is likely to result in undue damage to the environment or a breach of environmental outcomes under a PEPR, the Minister or Authorised Officer may by written notice give an Environmental Direction (effective immediately). 2 An Environmental Direction may include: Discontinuance of mining operations – indefinitely or for a specified time Undertake a specified action, tests or monitoring Undertake rehabilitation or restore any land Furnish the Minister with results or reports A person required to comply with an Environmental Direction may appeal to the ERD Court for a review of the direction within 28 days. LANDOWNER RELATED RIGHTS AND OBLIGATIONS There is a penalty of up to $250,000 for noncompliance. Exempt Land Pursuant to the Mining Act, certain land is exempt from mining operations, unless the person who has the benefit of the exemption waives that right. A person required to comply with an Environmental Direction may appeal to the ERD Court for a review of the direction within 28 days. Where a mining operator has entered into an agreement with a person to waive the benefit of exempt land, the person who has the benefit of the exemption shall have a cooling-off right. Power to direct rehabilitation The Minister may by written notice given to any person undertaking mining operations, issue a Rehabilitation Direction. The person’s cooling-off right shall commence from the date of signing the agreement and concludes at the end of the fifth clear business day after the date the agreement was signed. A rehabilitation direction may include: The rehabilitation of land in accordance with a PEPR The rehabilitation of land to a standard required to meet licence conditions The direction must allow reasonable time for compliance and may require the removal of abandoned equipment and facilities. If the person who has the benefit of the exemption decides to rescind their agreement, they must give written notice to the mining operator prior to the expiry of the cooling-off period. There is a maximum penalty of $250,000 for non-compliance. A person required to comply with an Environmental Direction may appeal to the ERD Court for a review of the direction within 28 days. Compliance directions The Minister may by written notice issue a compliance direction for the purpose of: Securing compliance with a provision of the Act, licence conditions or any authorisation relating to the licence Preventing operations which are contrary to the Act or licence Rehabilitating land where there is no authority under the Act to undertake mining operations (illegal mining) There is a penalty of up to $250,000 for noncompliance. A mining operator is liable to pay reasonable costs for the person to obtain legal assistance relating to a waiver of exemption negotiation. Costs are limited up to $500. The relevant court for any legal proceedings relating to exempt land is the ERD Court. Notice of Entry A Notice of Entry served on a landowner must include information relating to: company details; a detailed work program; timing and location of proposed mining operations; rights of compensation and rights of objection. If land is subject to a licence under the Petroleum and Geothermal Energy Act 2000 a Notice of Entry must be served on the holder of that licence. The relevant court for any legal proceedings relating to a Notice of Entry is either the Warden’s Court or ERD Court or Supreme Court. Declared Equipment The definition of declared equipment now includes drilling equipment. 3 A Notice of Use of Declared Equipment must be served on the landowner at least 21 days prior to using declared equipment. If land is subject to a licence under the Petroleum and Geothermal Energy Act 2000 a Notice of Use of Declared Equipment must be served on the holder of that licence. A Notice of Use of Declared Equipment is not required for a mining lease. The relevant court for any legal proceedings relating to Notice of Use of Declared Equipment is the Warden’s Court. Compensation Compensation payable to a landowner may include an additional component to cover costs, reasonably incurred by a landowner in connection with any negotiation or dispute relating to a mining operator gaining access to their land. Acquisition of Land If the activities of a mining operator on land substantially impair the owner’s use and enjoyment of the land, the owner may apply to the Land and Valuation Court for an order to transfer their land to the holder of the mining lease or miscellaneous purposes licence. The purchase price will be an amount equivalent to market value of the land and a further amount the Court considers just, by way of compensation for disturbance. The new section in the Act relating to Acquisition of Land will not apply to exploration licences. FURTHER INFORMATION AND RESOURCES Telephone: 08 8463 3000 Visit www.pir.sa.gov.au/minerals for the latest information on the progression of the legislative passage of these amendments. Other Fact Sheets available: Guide for Miners Guide for Landowners Other PIRSA Regulatory Guidelines and Information Sheets are currently being updated and will be made available when the amendments come into operation. 4