MINERALS
DEVELOPMENT BILL
Consolidation & Update of Previous Acts
Presentation to Joint Oireachtas Committee on
Transport & Communications 1 April 2015
Exploration & Mining Division
Department of Communications, Energy & Natural Resources
Current Minerals Legislation
•
Minerals Development Act 1940
•
Petroleum and Other Minerals Development Act 1960
•
Minerals Development Act 1979
•
Minerals Development Act 1995
•
Minerals Development Act 1999
[Collectively, Minerals Development Acts 1940 to 1999]
•
Energy Miscellaneous Provisions Act 2006
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Scope of Current Legislation
The Minerals Development Acts, 1940 to 1999 include,
inter alia:
• provisions for regulation of minerals prospecting and
development;
• a statutory vesting of the exclusive right to work minerals
in the Minister, subject to the payment of compensation;
• compulsory acquisition of other rights necessary for
efficient development of minerals, subject to payment of
compensation; and
• the payment to the State of rents and royalties from the
extraction of minerals.
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Background to Bill
• Government Decision of the 2 of June 2006;
• In preparation for quite a number of years, interrupted by
higher priority legislation;
• Initial motivation to prepare the legislation remains the
same today:
• address practical difficulties in application of existing Acts;
• provide greater clarity for potential developers and mineral owners;
• modernise provisions for compulsory acquisition;
• Department’s Integrated Reform Delivery Plan, prepared
under Government’s Public Service Reform Plan, commits
to modernisation of sectoral legislation including
consolidation of these Acts.
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Purpose of the Bill
• A modern regulatory regime for exploration and development of state minerals;
• Apply principles of social justice the exercise of private rights in respect of
minerals and ancillary rights and reconcile their exercise with the exigencies of
the common good;
• Continued vesting in the Minister for Communications, Energy and Natural
Resources the exclusive right of working private minerals, subject to
compensation;
• To provide for preparation and implementation of rehabilitation plans for
abandoned mine sites; and
• To provide for consequential amendments.
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Short Title
• An Act to make further and better provision for the
development of minerals in the State and for that purpose
to repeal the Minerals Development Acts 1940 to 1999
(other than certain provisions of the Minerals Development
Act 1979) and the Minerals Company Acts 1941 to 1950, to
make consequential amendments to other Acts, and to
provide for related matters.
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Principal Changes in the Bill
These relate to:
• the procedures for compulsory acquisition in respect of
ancillary surface rights;
• the method for the calculations of rents/royalties;
• the basis for payment of compensation in respect of
private minerals.
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These revisions will:
• Streamline processes from the point of view of investors
in the sector;
• Provide greater transparency in terms of their financial
obligations;
• While continuing to protect private property rights in
accordance with the Constitution;
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Environmental
• The Bill does not directly address environmental matters
which are more appropriate to the EPA and local
authorities;
• EPA legislation specifically precludes the Minister from
attaching environmental conditions to mining permits;
• Nevertheless the Bill must take appropriate account of
these matters, in particular to address obligations under
the Aarhus Convention.
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Main Provisions of the Bill
Part 1
Preliminary and General (Sections 1-6)
Part 2
Prospecting (Sections 7-52)
Part 3
Working Minerals (Sections 53 to 101)
Part 4
Ancillary Rights (Sections 102 to 130)
Part 5
Rehabilitation (Sections 131 to 154)
Part 6
Mining Board (Sections 155 to 190)
Part 7
Enforcement and Miscellaneous (Sections 191 to 223)
Part 8
Transitional Provisions, Repeals and Consequential
Amendments (Sections 224 to 249)
Schedule: List of Minerals
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Part 1 Preliminary and General
(Sections 1-6)
Contains standard provisions such as short title and
commencement arrangements, interpretation and
application.
• A key definition is the that of “Minerals”, which excludes
stone, sand, gravel and clay, petroleum and dolomitic
limestone;
• Other sections define “Working minerals” and clarify State
rights over minerals.
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Part 2 Prospecting
(Sections 7-50)
This part sets out the principles, policies and procedures for regulating
prospecting either by the Minister or prospecting licence holders. It
mainly restates existing provisions. The principal changes include:
• Codifying current administrative procedure for registration of
Statements of Interest and PL competitions;
• Introduction of Retention Licences;
• Setting out criteria for determining “fit and proper person” and “public
interest”;
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Part 2 Prospecting (2)
(Sections 7-50)
• Prior written consent now required for boreholes, trenching and bulk
sampling;
• Limited right to extract minerals for trial or test purposes, subject to
compensation to owners;
• Airborne Surveys:
• duty to notify Minister and provide data;
• Confidentiality of data.
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Part 3 Working Minerals
(Sections 53 to 101)
Main changes:
• Objective is to eliminate difference between private and
State minerals from developer’s perspective;
• Restatement of exclusive right to work minerals vested in the
Minister under Minerals Development Act 1979, and right to
compensation established under that Act;
• Single instrument, mining licence, regardless of ownership
(replacing State Mining Leases & Licences);
• Revisions of public notice procedure and title research
requirement prior to granting a Licence;
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Part 3 Working Minerals (2)
(Sections 53 to 101)
• More detailed processes for application and granting of
mining licence.
• Greater clarity on scope of Mining Board consideration of
objections;
• Greater predetermination of fees & royalties;
• All licences subject to basic fee;
• All licences subject to royalty for which ranges will be set by
regulations;
• Clarity on the basis for assessment of compensation for
private mineral owners:
• Compensation to be paid by Minister will equal amount of royalty;
• Right of appeal to Mining Board continues.
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Part 4 Ancillary Rights
(Sections 102 to 130)
Relates to ancillary rights necessary to carry out a variety of
other activities not included in definition of “working minerals” but
necessary to work minerals efficiently:
• Replaces provisions from 1940, not considered up to modern
best practice;
• Clearly defined “ancillary underground rights” and “ancillary
surface rights”;
• Underground rights (>10m below surface)
• automatically go with licence;
• Subject to right to compensation deemed zero unless landowner
can prove otherwise – Mining Board will determine;
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Part 4 Ancillary Rights (2)
(Sections 102 to 130)
• Surface rights (<10 meters from surface) include rights to sink
wells & shafts and construct declines and surface facilities;
• Right of Minister to compulsorily acquire land or rights over
land where justified, subject to obligation on developer to
negotiate;
• Compensation to be paid by Minister and recouped from
developer;
• Compensation determined by Mining Board.
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Part 5 Rehabilitation
(Sections 131 to 154)
• This part will replace Part 9 of the Energy (Miscellaneous
•
•
•
•
•
Provisions) Act 2006;
2006 provisions were intended specifically for Silvermines
but attempt was made at general application;
Reviewed and revised following more careful
consideration;
Provides for designation of an area as a rehabilitation
area and allows for adoption of rehab plan but no
obligation to address any particular site;
Provides for compulsory acquisition;
Intended only for legacy sites.
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Part 6 Mining Board
(Sections 155 to 190)
• This part provides for the continuation of the Mining
Board;
• Quasi-judicial independent board established under 1940
Act to adjudicate various matters in that Act, with more
additional functions set out in 1979 Act;
• Mainly deals with compensation issues;
• Provisions mainly relate to administration and governance
of Board and its procedures for making decisions.
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Part 7 Enforcement and Miscellaneous
(Sections 191 to 223) Chapter 1
This chapter:
• Creates the offence of unlawful working or prospecting
• Enhances the powers of inspectors appointed by the
Minister.
• Introduces injunctive powers for continuing offences;
• Clarifies which offences will be prosecuted by the Minister
and which by the Mining Board;
• Sets time limits for prosecution of offences.
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Part 7 Enforcement and Miscellaneous
(Sections 191 to 212) Chapters 2 - 4
Other chapters in this Part address:
• Compliance with the Aarhus Convention in relation to
public participation in environmental decision making and
access to justice, except for mining;
• General provisions relating to liability for damage or
nuisance;
• Requirement to notify Minister of boreholes >5m depth,
keeping of records and specimens and right of inspectors
to view records and take specimens.
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Part 7 Enforcement and Miscellaneous
(Sections 213 to 223) Chapters 5 - 6
• Registration of excepted minerals – i.e. minerals being
worked on the appointed day in 1979 that were registered
as excepted from the statutory vesting of the right to work
minerals
• Bill will provide that all such registrations are automatically
cancelled on enactment;
• Where such minerals were still being worked on an appointed day
in 2015, registration can be re-applied for;
• Mining Board will determine whether registration can be reinstated.
• Other miscellaneous matters, such as general power to
make regulations, annual report to Oireachtas etc.
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Part 8 Transitional Provisions, Repeals
and Consequential Amendments
(Sections 224 to 249)
This part deals with consequential amendments to and
repeals of other legislation, and with transitional matters
such as:
• Continuation of instruments under previous Acts and
regulations;
• Continuing of applications made under former Acts;
• Continuation of compensation arrangements already in
place.
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Schedule
• The schedule contains a list of minerals which for
certainty are included within the definition of minerals;
• The list is not exhaustive and the definition of minerals
may allow other substances to be defined as minerals;
• The schedule also includes definitions of “dolomitic
limestone” and “silica sand”.
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Regulatory Impact Analysis
• A Regulatory Impact Analysis (RIA) setting out the policy
context and rationale for the Bill has been prepared.
• Included consultation with key stakeholders for Screening
RIA submitted to Government in 2006 and a further
consultation in 2009.
• Has been updated in light of drafting changes and
changes in RIA requirements;
• Must continue to be regarded as a draft until Bill is
submitted to Government for permission to publish.
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