Mining Claim Handbook General

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DepartmentofNaturalResourcesandMines

Mining claims handbookGeneral information

August 2012Version 01


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VERSION

NO.

RELEASE

DATE

BRIEF DESCRIPTION APPROVED

BY

1 24 August2012

Final version of handbook ExecutiveDirector

Director-General

DISTRIBUTION: Industry clients

Manager (Tenures Administration)

Mining registrar

Deputy mining registrar

Tenure officers

CUSTODIAN Service Training and Regulatory Support

Mining and Petroleum Operations

State of Queensland, Department of Natural Resources and Mines, 2012.

The Queensland Government supports and encourages the dissemination and exchange of its information. The copyright in

this publication is licensed under a Creative Commons Attribution 3.0 Australia (CC BY) licence.

Under this licence you are free, without having to seek permission from DNRM, to use this publication in accordance with the

licence terms.

You must keep intact the copyright notice and attribute the State of Queensland, Department of Department of Natural

Resources and Mines as the source of the publication.

For more information on this licence visit http://creativecommons.org/licenses/by/3.0/au/deed.en
http://creativecommons.org/licenses/by/3.0/au/deed.enhttp://creativecommons.org/licenses/by/3.0/au/deed.enhttp://creativecommons.org/licenses/by/3.0/au/deed.en


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Contents

Definit ions and abbreviations 1Managing Queenslands mineral and coal resources 1The purpose of this guide 2How to use this guide 2General information about mining claims 3What is a mining claim? 3Legislation and Regulation applying to all mining claim transactions 3Mineral Resources Act 1989 3Mineral Resources Regulation 2003 4Practice manual (practice directions) 5Operational policies 5Making an application 5

Types of mining claim applications 5Properly-made applications 6Providing false or misleading information on your application 7Issues that must be considered before an application can be approved 8Processing applications 13Lodging your application 13Assessing your application 14Deciding the outcome of your application 14Af ter your claim has been approved 14Entitlements (what you can do on a mining claim) 14What is not permitted on a mining claim 15Restricted areas 16How we check that you are complying with conditions 16Not complying with your conditions of approval 16Frequently asked questions 17How often do I have to work on my mining claim? 17Can I leave equipment or material outside my mining claim? 17Can I live on my mining claim? 17Can someone else have an access over my mining claim? 17Can I put a fence around my mining claim? 17Can I use machinery on my mining claim? 18What if I want to mine underground? 18Can I build a dam on my mining claim? 18Do I have to lodge a royalty return every year? 19Do I need to let you know if any of my details have changed? 19What other important things do I need to know? 19Safety and health information 20


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Definitions and abbreviations

EA Environmental authority: A licence or approval issued by the administrating authorityunder the Environmental Protection Act 1994

Department Department of Natural Resources and Mines

IRTM Interactive resource tenure mapsMRA Mineral Resources Act 1989MRR Mineral Resources Regulation 2003Reserve land Land including roads, state forest, timber reserves, resources reserves, Aboriginal

land, Torres Strait Island land and rail corridors. Consent is required if activities areproposed on the surface of reserve land. Refer to Schedule 2 of the MineralResources Act 1989

Restrictedland

Refers to land where a permanent building is situated and used mainly foraccommodation, business purposes, community, sporting or recreational purposes,as a place of worship or where a feature is situated, such as principal stockyards, abore or artesian well, dam, another artificial water storage connected to a water

supply or a cemetery or burial place. Refer to Schedule 2 of the Mineral ResourcesAct 1989Royalty Commodity-based payments made by one party to another for the right to ongoing

use of an asset, refer to Schedule 4 of the MRR for more information.Overlappingpermit

Refers to an area of land that may be subject to both an exploration permit andpetroleum authority, greenhouse gas authority, geothermal authority and in somecases, a coal or oil shale authority. Notices and agreements may be required beforeactivities can commence

SCL Strategic Cropping Land is land that has characteristics which render it particularlysuitable for long-term food and fibre production

Managing Queenslands mineral and coal resourcesAll mineral and coal resources in Queensland are owned by the State. Individuals or companies mayapply to explore or extract those resources. The department that regulates mining activities managesthose resources on behalf of the State by administering a series of permits based on the conditionscontained in the resources Acts.

This allows us to assess, develop and use the mineral and coal resources in Queensland for thebenefit of Queensland and its people.

The legislation that governs mineral and coal resources is the Mineral Resources Act 1989 (theMRA). This is supported by the Mineral Resources Regulation 2003 (the Regulation). The purpose ofthe MRA is to:

encourage and facilitate exploration for and mining of minerals

improve knowledge of the Queenslands mineral resources

minimise land-use conflicts that can arise from prospecting, exploring and mining

encourage environmental responsibility and land care management in the resources industries

ensure that the Queensland receives a financial return from mining

provide a way to manage and regulate prospecting, exploration and mining activities.

The framework for assessing and granting permits has been designed to meet these goals in a fair,transparent and accountable wayresulting in best practice, production-oriented and competentexploration and development.

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The full MRA and MRR is available online from the Office of Queensland Parliamentary Counselwebsite [www.legislation.qld.gov.au]. You can also purchase copies of Queensland legislation fromthe Queensland Government Bookshop [www.bookshop.qld.gov.au].

It is important that you are aware ofyour obligations and responsibi lities under the legislation.While these are outlined in detail further in this document, the MRA and the MRR are the final pointsof reference in matters relating to mining claims.

The purpose of this guideWe have developed a series of guides to help you understand the laws around applying for andissuing resource permits, and what your responsibilities are as a permit applicant and permit holder.

This guide provides information about mining claims, including:

an overview of what a mining claim is, and what can be done on it

an explanation of the legislation around new mining claim permits, applications for renewal orchanges to an issued permit

advice on how to prepare and lodge an application (including how to complete forms and whatfees are required)

information on how an application is assessed by departmental staff, including what your andour responsibilities are

contact details for the regions and mining districts in Queensland

links to other relevant topics.

How to use this guideWe have structured the guide in a user-friendly one. The first part of the guide is an introduction thatlooks at general requirements and information about mining claims. This section provides a broadoverview of what a mining claim is and what it can be used for. It also discusses the legislation aroundhow mining claims are issued and maintained. It also includes a description of your responsibilitiesonce you have been granted a mining claim permit.

The remainder of the guide is broken into information about specific transaction typesincludingrenewing your permit and transferring it to a different holder. Each of these sections includes:

a description of the transaction

regulation relating to that transaction making an application

assessment of application

granting an application

These sections are very detailed, and contain all the information you need to understand the processand apply for approval.

We have used an information icon to emphasise information that you need to make a noteof.

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General information about mining claimsWhat is a mining c laim?

A mining claim is what is known as a production permitthis means that it allows the permitholder to extract resources from the land. It includes the entire surface of the land within theboundaries of the mining claim.

Mining claims are issued for specific minerals, often gemstones and/or purposes, and may not beissued for coal. They differ from mining leases(another type of production tenure) in that permitholders are limited in the scale of the activity that can be undertaken on the land.

Mining claims are generally issued for five years and will expire if they are not renewed or otherwisespecified under s92 of the MRA.

Legislation and Regulation applying to all mining claimtransactionsMineral Resources Act 1989

The Mineral Resources Act1989 (the MRA) is the definitive document for regulating mining claims,and describes whatneeds to be done. It includes general provisions about mining permits as well asspecific requirements for particular permit and transaction types. Both the permit applicant or permitholder and the department have responsibilities relating to these provisions. The table below givesyou a high level overview of some of the key requirements. You are required (as the permitapplicant or permit holder) to understand the obligations set out in the.

Section of act Permit applicant/holder responsibilities Department responsibiliti es

320 Pay royalty, and lodge royalty returns as requiredby the Mineral Resources Regulation 2003. NA

403 Not erect any building or structure on or make any

other improvement to land (unless they are

authorised under the Act or are the owner of the

land).

Ensure that the holder is complying with this

provision in the Act before approving any

substantive transaction on the mining claim

(renewal, transfer, mortgage etc.).

404C Comply with any notice to provide information. The MR may require the holder to provide

information about the tenement, activities carried

out under the tenement, and production or sales

information.

This request must take the form of a notice which

includes the following:

- the information required.

- how the information must be provided.

- the day by which the information must be

provided.

404D False or misleading document

A person must not give the chief executive or a

mining registrar (the recipient) a document

containing information the person knows is false

or misleading in a material particular.

Maximum penalty200 penalty units

Ensure that the holder understands that false or

misleading information in a document is a serious

offence and may be fined.

414 Failure of the applicant to supply furtherinformation where requested to under the Act

constitutes a failure to comply with the

requirements of the Act for that application.

Keep records of notices to provide information asgrounds for refusal if the information is not

provided.

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Mineral Resources Regulation 2003The Mineral Resources Regulation 2003 (the Regulation) is the supporting documentation for theMRA. The Regulation describes how the requirements in the MRA need to be carried out. Therequirements in the Regulation may change depending on circumstances (e.g. the prescribed fees in

the Regulation may be revised each financial year). The parts of the Regulation related to miningclaims are summarised below:

Section of reg Provision Context

7 Prescribed areas for particular land (as referenced

in s53 of the Act).

Refers the reader to Schedule 2 of the Regulation,

which describes the maximum size for a mining

claim for certain areas within certain districts.

These may be different to the maximum areas

described in the Act.

8-9 General conditions which may be applied to a

mining claim, as allowed under s81(1)(n) of the

Act.

In addition to the conditions specifically noted in

the Act, the Department may include these

additional conditions where they are considered

appropriate.

10 Prohibited equipment and machinery. Provides a detailed list of the equipment and

machinery which may not be used on land subject

to mining claim.

Also describes individual circumstances where

use of this equipment or machinery may be

appropriate.

24-28 Requirements for lodging a royalty return. Holders of a mining claim may be required to

lodge a royalty return. These provisions set out

what information is required, and when it must be

lodged.

29 Circumstances when a royalty return is not

required.

If a mining claim does not produce enough mineral

to require a royalty payment, a royalty return is not

required (unless the holder intends to transfer or

surrender the claim).

34 Thresholds for payment of royalty. Royalty is only payable where revenue from

mining exceeds certain thresholds, as noted in this

provision.

81 Circumstances where the Department cannot

accept an application.

The Department cannot accept an application for

processing where certain circumstances exist. An

application that meets the requirements foracceptance is known as a properly made

application. These circumstances are discussed

individually elsewhere in this document.

82 Hours of business. Applications for a new mining claim must be

lodged in person: other application types may be

lodged in person. This provision states the

minimum hours a departmental office must be

open to accept applications.

Sch 2 Maximum prescribed areas for mining claims

within restricted areas.

Describes the maximum size for a mining claim for

restricted areas within certain districts. These may

be different to the maximum areas described in

the Act.

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Section of reg Provision Context

Sch3 Restrictions on grant (Restricted Areas). Identifies specific locations where there are

restrictions in addition to those set out in the Act or

elsewhere in the Regulation. These are identified

by block. The Departments mapping tool will

advise whether land falls within a restricted area.

Sch 4 Royalty rates required. The royalty rate for corundum, gemstones or other

precious stones is 2.5% of the value of the

corundum, gemstones or precious stones.

Sch 5 Rental payable. There is no rent required for mining claims.

Sch 6 Fees. Sets out the fees for each transaction type.

Practice manual (practice directions)

Section 416B of the MRA allows for the Chief Executive of the department to keep a practicemanual about mining permit administration processes to assist people dealing with the department.The manual includes individual practice directions about: what information, documents ormaterial a person may or must give how orwhenrequested material must be given the format of requested material processes to ensure consistency and efficiency in the mining permit administration process.

The practice manual will be maintained on our website. Please note, there is currently no activepractice manual declared, however this may change in the future.

Operational policies

Operational policies are not required to be legislated by parliament, but they describe how weinterpretand apply aspects of the MRA. These rules are applied uniformly across the department

in the administration of permits.These include transparent guidelines for staffto follow to ensure consistency and efficiency inpermit administration. A detailed list ofoperational po licies may be found on our website. Thishandbook references particular policies where applicable.

Making an applicationTypes of mining claim applications

Anyone wishing to carry out mining claim activities must first obtain a permit for a mining claim.Once this permit has been obtained, a number of other transactions can occur:

Renewal this allows the mining claim to continue in force for the period specified in therenewal approval.

Change of details this is required when a holders administrative details change such aschange of address, or change of name by deed poll.

Transfer of interest selling the share in the mining claim to another party.

Surrender giving the rights to the mining claim back to the State.

Mortgage using the share in the mining claim as security against a loan.

Caveat (adding or removing) a condition attached to a mining claim that placeslimitations on what transactions can be finalised.

Request to vary access required when the approved access to the mining claim is nolonger suitable/available, and an alternative access route is sought.

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Request to use other machinery certain types of machinery are prohibited on miningclaims, however an application can be made to the mining registrar to use them for purposesother than mining.

Request to mine additional minerals each mining claim permit is for specific minerals(e.g. sapphire). If a holder wishes to mine for a different sort of mineral (e.g. ruby) anapplication must be made to have this mineral added to the permit.

Transmission by death interest in a mining claim can form part of a deceased personsestate and an application can be made to transfer the rights to a beneficiary.

Each of these transactions is governed by legislation, and requires an application form, a fee andsupporting information.

Properly-made applicationsBefore an application can be accepted for processing, it must be considered properly-made. Thismeans that the application needs to meet the requirements of the MRA and the Regulation and be:

made on the official application form

accompanied by the correct fee made in or to the regional office in the district in which the mining claim is located

made by an eligible person

made over available land.

If your application does not meet all of these requirements, we will not accept it.

Official application formsMost transactions carried out under a mining claim permit will need to be requested on an officialapplication form. These are available at the district offices, or can be printed from our website.

The individual guides for each transaction will explainhow to complete the application form.

As a permit applicant or permit holder, you are responsible for making sure the forms are completedfully before they are lodged with the mining registrar.

Blank or substantially incomplete application forms will not be accepted. You are

required to complete the application form before lodging it with us.

Associated feesThe fees associated with applications and transactions for mining claims are set out in Schedule 6 ofthe Regulation. The fees may change from time to time, so always check the fee for your applicationbefore visiting the district office or mailing your application.

Applications that do not include the correct fee will be returned to you, unless you can provide thecorrect fee at the time of lodgement.

District mining offices

Applications for new mining claims must be lodged in person at the office of the mining registrar forthe district in which the mining claim is predominantly located. A list of district offices and their contactdetails are located on our website at:

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http://mines.industry.qld.gov.au/mining/contacts.htm

Eligible person

To be an eligible person, you need to be:

an adult (over 18 years of age)

a company

a local government that acquires a mining claim under the Local Government Act 2009 foroverdue rates and charges

an educational institution the Minister treats as an eligible person.

The processing officer will require proof of age and identity for individuals. This may be a certifiedcopy of the original ofone of the following:

the applicants full birth certificate (not an extract)

a passport in the name of the applicant

an 18+ card in the name of the applicant

a drivers licence in the name of the applicant.

If the applicant is a company, you will need to provide a certified copy of the certificate ofregistration issued by the Australian Securities and Investments Commission (ASIC) that shows theAustralian Company Number (ACN). The company must have current registration status on theASIC website. Companies that do not have current registration will not be accepted as an eligibleperson. If a foreign company, you must be registered with the Australian Securities and InvestmentsCommission (ASIC) and provide a certified copy of the certificate of registration that showsthe Australian Registered Body Number (ARBN)

An ABN is not the same as an ACN. An ABN is an Australian Business Number and can

be held by anyone who applies for one. An ACN is an Australian Company Number, andonly issued to registered companies.

is

Available land

A new mining claim cannot be issued over land where there is:

already an existing mining claim on the land

already a mining lease or mineral development li cence over the land

a current application for a mining claim, mineral development licence or mining lease overthe land

anexploration permit or current application for an exploration permit over the land andthe holder of or applicant for the exploration permit has not given their consent for the miningclaim application to proceed.

An available land check will be conducted by the processing officer when you lodge your application.You can check prior to making your application by using our Interactive Resource Tenure Maps(IRTM) service. This free service can be accessed on our website athttp://mines.industry.qld.gov.au/mining/default.htm

The IRTM help guide included in this handbook and can also be accessed in IRTM.

Providing false or misleading information on your applicationUnder the MRA, if you provide false information or misleading documents to the Chief Executive ofthe department or mining registrar, you may incur a fine of up to 200 penalty units. The monetaryvalue of a penalty unit is set under the Penalties and Sentencing Act 1992.

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Issues that must be considered before an application can be approved

There are a number of issues that the permit application and the department need to consider beforewe can approve a permit. These issues apply mainly to new applications, and to applications forrenewal or transfer of interest on existing permits. Check the chapter dealing with the specifictransaction type for details on whether the following issues apply.

It is important that you have considered these matters when you lodge your application.You will need to supply documentation to show that any requirements have been met.

Native ti tle considerations

Native title is the rights and interests under the traditional laws and customs of Aboriginal and TorresStrait Islander peoples that are recognised by common law.

In some areas, native title has been extinguishedthis means that it no longer exists (such as onfreehold land)but in other areas, native title continues to be active (such as pastoral holdings, townreserves, unallocated state land). When making an application for a resource permit, we undertakesearches to determine if the permit area is subject to native title.

Further information on the native title process can be found in our Native title guide. You shouldread this guide in conjunction with any supporting operational polices on our website.

You can get a preliminary indication from IRTM on the extent that your requested permitted area mayintersect with land where native title rights may continue to exist. If the area intersects withsuch land, your will have to address these rights under the Native Title Act (1993) Cth (NTA).

In some cases, native title includes the right to possess and occupy an area to the exclusion of allothers (often called exclusive possession). This includes the right to manage who accesses thelandand what it is used for. This right is only recognised over certain parts of Australiasuch asunallocated or vacant Crown land and some areas already held by or for Indigenous Australians1.

There are a variety of options available to address native title rights and interests under the NTA.These are outlined in greater detail in the Native title guide. While several options are listed on theapplication form, the most common processes for mining claims are:

opting in to a Indigenous land use agreement

choosing the right to negotiate.

>> Indigenous land use agreements

The Commonwealth Native Title Act 1993 provides for Indigenous land use agreements (ILUAs)to be made between native title holders or claimants and other parties. This sets out how land andwaters in the area covered by the agreement will be used and managed in the future. ILUAs can benegotiated privately or are sometimes conducted by the State on behalf of miners, such as areaagreements, which allow for small scale mining operations..

State ILUAs have been negotiated between the State, permit applicants, representative bodies andthe traditional owners of the land. Queenslands existing State ILUAs set out land accessarrangements for mining activities, but still respect and protect native title rights and Indigenouscultural heritage.

1Source:http://www.nntt.gov.au/Information-about-native-title/Pages/Nativetitlerightsandinterests.aspx

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Depending on the specific State ILUA, an applicant may deed into (i.e. become a party to) theILUAby signing a deed attached to the relevant State ILUA. The deed contains previouslynegotiated conditions designed to address native title requirements. The native title conditionsoutlined in the ILUA then become part of the conditions of approval for your mining claim application.

Copies of the applicable State ILUAs and their conditions are available to be viewed by the public atthe relevant district office.

>> Right to negotiate process

The right to negotiate (RTN) is given to registered native title claimants under the NTA (part 2,division 3, subdivision P). This right is given to native title parties so they can enter into discussionabout what is to occur on their land and to be compensated for any impacts on their native title rightsand interests that mining activities may have.

The RTN process may be chosen as a way to address native title requirements when a State ILUA isnot available to deed into. The departments Native title guide explains the RTN process in moredetail.

>> Excluding land from your permit area

Where less than 10% of the area is subject to native title, it may be possible to have the area that isimpacted by native title, excluded from your permit area. Refer to Excluding land for the purposeof native title to determine if this policy may be applied to your application.

>> Permits granted prior to 23 December 1996

All permits that were originally granted before 23 December 1996 and have been continuously inforce since then are exempt from native title provisions . These permits were granted before the

Native Title Act 1993 came into full effect and native title doesnt need to be addressed in the usualway for these permits. The activities under these permits are known as previous exclusivepossession actsmeaning that native title is extinguished over that land for as long as the permitremains valid.

If the permit is changed or updated there may be a need to address native titlerequirements.

>> What you need to do

When you submit your application, you will need to: indicate if your application needs to undertake a native title process confirm which process you intend to undertake (if applicable).

To deed into a State ILUA: A copy of the ILUA will be given to you You will need to confirm that you are eligible to deed into it and return the signed deed to us

so we can progress your application.

>> What the department wil l do

If you have indicated that the permit area you are applying for does not intersect native title land,or that the application can proceed under the excluded land policy, we will undertake a detailedassessment to confirm the process.

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If we reach a different conclusion, we will discuss your options with you so you can advise us whichprocess you would like your application assessed under.

Where you have indicated that a right to negotiate process is required, we will progress theremainder of the assessment as a priority, so that the notification process can commence as soon aspossible. The Department will let you know when the notification date is once your advertisingplacement has been confirmed. More information on the native title processes can be accessed on

our website.

Environmental authority (mining activities)

All new applications for mining permits need to address the requirements of the EnvironmentalProtection Act 1994 (the EPA). The administration of the EPA is carried out by State Governmentthrough a nominated department. This department assesses the environmental impacts of miningactivities and regulates these activities through the issue of environmental authorities (EA). In someinstances, the authority to issue an EA is delegated to the mining registrar.

>> Mining projectsDepending on the risk of environmental harm, a mining project is prescribed under section 151 of theEPA as either a level 1 mining project or a level 2 mining project. Because of the restriction tohand-mining and the lower risk on environmental impact, all activities conducted on mining claims arelevel 2 mining projects.

A level 2 mining project will be authorised by:

a code compliant environmental authority

a non-code compliant environmental authority (mining activities).

The code that is referred to is the standard conditions outlined in the Code of environmentalcompliance Mining claims and prospecting permits. When you apply for a mining claim, you need tothink about the activities you are planning to carrying out on the permit site and indicate if they meetthe conditions of the code or not.

If you are applying for a code compliant environmental authority (mining activities) for a miningclaim, you must certify that all proposed mining activities can comply with the standard environmentalconditions in the code. Code-compliant level 2 EAs can be issued by the mining registrar withoutreferral to the environmental regulator.

Non-code compliant EAs for a level 2 mining project must be referred to the environmental regulatorand this can add significant time to the assessment period for the applicationresulting in your permitapproval being delayed.

To minimise delays in assessing your application, you should ensure that any activitiesyou propose to carry out on the mining claim meet the Code of environmental compliance Mining Claims and prospecting permits.

An EA doesnt expire, but it does cease to have effect if:

you surrender the mining claim permit

the mining claim permit expires

your mining claim permit is terminated by the department for any reason.

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Your EA may need amending if you change the nature or intensity of the activities you plan to carryout on the land. This would apply only if the proposed changes meant that the activities no longermet the conditions in the code of environmental compliance.

If you are submitting a new mining claim application, you must apply for an EA (mining activities)at the same time that you apply for your mining claim permit or apply to amend an existing EA (miningactivities) to include the new permit.

For other transaction types (e.g. renewal, variation of access, request to mine additional minerals) thedepartment will assess your proposed mining program and determine if we need to get further advicefrom the environmental regulator.

Strategic cropping land

The Strategic Cropping Land Act 2011 came into force on 30 J anuary 2012. It applies to all newapplications for mining activities that occur on land that is designated as existing or potential strategiccropping land (SCL). You can determine what land this applies to by viewing the trigger maps

available from the administering department.

You need to check for the presence of SCL before you make an application. You can access our freeInteractive Resource Tenure Mapping (IRTM) service athttp://mines.industry.qld.gov.au/mining/default.htm.

SCL may apply to other transactions (such as renewals) where the nature or intensity of miningactivity increases on permits where existing or potential SCL has been mapped and which result in anamendment to the EA being required. We will also check to see if SCL exists over the permit areawhen you submit a new application or when we receive any changes to activity on your proposed

mining program. SCL may also delay your application and you may incur other costs associated withSCL.

Compensation agreements

If the land you want to use for your mining claim is not yours, you may need to pay compensation tothe owners of the land for the privilege of using the land to mine.

Land may be owned by:

an individual on freehold title and other leasehold land

a company a public authority like a local council or state government department

a native title trustee under theAboriginal Land Act 1991

a utilities company like Ergon or Queensland Urban Utilities.

Compensation requirements are set down in a written agreement, and must be endorsed by allparties before renewal can be decided.

You can check land ownership details with the Department of Natural Resources and Mines TitlesRegistry to determine who you need to negotiate an agreement with. Contact 13 QGOV (13 7468) for

more information.Compensation relates to both new mining claims and the renewal of existing permits . You willneed to negotiate an agreement and provide a copy to the mining registrar for filing. If this is notprovided within three months of the last day of objections (as outlined on your certificate of public

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notice) or within three months from the expiry date (for renewal), the mining registrar will refer it tothe Land Court for determination.

When renewing your mining claim, you need to demonstrate that:

a) you have complied with the conditions of the agreement for the term just passed

b) the agreement allows for the renewal of the mining claim and will continue in force for the

proposed renewal periodc) you have negotiated a new agreement for the proposed renewal period and have given it to

the mining registrar for filing.

A mining claimcannot be granted or renewed unless compensation has been decidedupon.

Mining program

It is a requirement of every mining claim permit that the land is used for legitimate mining

activities. This means that the primary use of the land must be mining the mineral(s) specified inthe permit. Any other activities carried out on the land by the holder must be ancillary to the mininguse (including accommodation).

The mining registrar needs to be satisfied that the land is being used for legitimate mining activitiesbefore any application or renewal can be approved. The proposed mining program is howthe mining registrar can make this determination.

You will need to provide information in the proposed mining program about:

the type of mining activity being carried out (open cut or underground) and details ofdimensions and methods of operation

proposed machinery and equipment required to mine water storage details

the quantity and quality of ore or mineral

proposed treatment of ore

electrical equipment used on the site, and proposed source of power

the use of explosives

proposed work commitment (hours per week, months per year) and any proposed employees

the types of buildings on the site and construction materials used.

You need to provide a sketch plan of the mining claim, showing the locations of tracks, stockpiles,shafts and buildings..

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Security deposit

We require you to pay a security deposit before your permit is granted. This goes towardsrectifying actual damage that may be caused as a consequence of carrying out mining activities. Thisis in addition to financial assurance that may be required as part of the environmental authority(which is specifically used as a bond against environmental damage).

We use the mining program to determine the amount of securitywe require you to pay as reasonablesecurity for:

complying with the conditions of the mining claim (e.g. removing any structures on the siteafter mining has ceased)

complying with the provisions of the MRA (e.g. removing any plant or equipment on site aftermining has ceased)

rectifying any actual damage that may be caused by any person whilst acting under theauthority of the mining claim (e.g. damage to access tracks etc.)

amounts payable (other than penalties) to the State / department under the MRA (e.g. royaltyor rent).

A security deposit is initially determined when we received an application for a new miningclaim and is reviewed when an application for renewal is lodged. If the permit expires, or isterminated, the full amount will be refunded (unless we need it to address some of the issues listedabove).

We maintain records of the amount of security held in trust for each mining claim. As with any permitapplication where a security deposit needs to be assessed, if we need additional security from you,we will let you know and let you know the reasons why we need it.

A mining claimcannot be granted or renewed unless the required security has beendeposited with the mining registrar/district office.

Processing applicationsAll applications will go through three stages:

lodgement

assessment

decision

Lodging your applicationYour application will be checked to make sure that it has been properly-made(see p6). If it hasnot be properly-made, you have made genuine attempts to complete the form and made theapplication in person, our receiving officer will help you meet these requirements where possible.

If you cant resolve the deficiencies in your application at the time, you will need to return to the officeonce you have corrected your application.

If you lodged the application by mail, we will return it to you with a covering letter outlining whatthe deficiencies are. You will need to amend your application and re-lodge it.

If the application is properly-made, we will enter it on the register and receipt your application fees.

When you lodge your application, we will also check for any attachments or supporting information sowe can assess it. If anything is missing or lacks sufficient detail, we will let you know what you need todo and how to get the information to us.

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Assessing your applicationOnce the details of your application have been registered, the application and supportingdocumentation will be assessed to ensure that it meets requirements of the MRA other mining-relatedlegislation.

If required information and supporting documents remains outstanding, or the quality of theinformation submitted with the application is incomplete or inadequate, you may be sent a Notice toshow cause. This is an official notice under section 93 of the MRA that requires you to demonstrateto us why we shouldnt refuse your application on the basis of being incomplete. The notice sets outwhat information is required, how it needs to be provided and when it needs to be provided by.

Generally, you will receive 20 business days to provide the information. If we dont receive it withinthis timeframe, you will be sent a Reminder notice. This will give you another 10 business days toprovide the required information to us. If you still fail to provide the material to us, your applicationbeing refused (section 93 of the MRA).

Deciding the outcome of your applicationOnce the application has been assessed, the assessing officer will make a recommendation for

approval or refusal.

A recommendation for grant will only be made where you have provided allinformation necessary for a decision to be made (e.g. a proposed mining program which isacceptable to the mining registrar, payment of security, compliance with conditions ofapproval).

You will be advised if there are any pre-approval requirements for the mining claim that you need tocomplete (e.g. some applications need documents signed, some will require the payment of security)Once you have completed these, your application will be approved, recorded on the register and you

will be sent an approval and new (or amended) certificate of grant.

The certificate of grant is your title to the mining claim. It includes information about the land, durationof the permit and details of the permit holders. Ensure you keep your certificate of grant in a safeplace, as you will be required to lodge the certificate at different times during the term of the permit. Ifyou lose or destroy the certificate you will be required to pay a fee to replace it.

After your claim has been approvedOnce you have been issued with a mining claim, you have both entitlements (things you can do onyour claim) and responsibilities.

Entitlements (what you can do on a mining claim)

The mining claim entitles you (including employees or agents) to enter the land to:

prospect in, on or under the land for any mineral specified in the mining claim permit

hand mine for any mineral specified in the mining claim permit (in accordance with theconditions of the permit)

use machinery, mechanical devices or other equipment authorised under the Act to be usedfor prospecting or hand mining

erect and maintain a structure not being of a permanent nature on the land (including, where

authorised, a temporary residence for a person who is using the land for bona fide miningactivities)

make moderate use of explosives where the mining claim specifically authorises that use andappropriate explosive licences are held.

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A person who delivers goods or substances or provides services to the holder may also enter the landin order to do so.

What is not permitted on a mining claim

Only activities specifically authorised under the MRA or outlined in the conditions of the permit can be

carried out on a mining claim.

On any mining claim, you are not permitted to:

use the land for any other purpose than bona-fide mining purposes authorised by the permit

transfer the right to mine the land, or mortgaging the interest in the land, without first obtainingour written approval

allow the surface of the land to become untidy and poorly managed

use equipment, machinery or methods that are not specified in the permit to conduct miningactivities

erect any permanent building or structure whatsoever

prevent any person with the lawful right to access the land from accessing the land.

These prohibitions form the mandatory conditions of approval on the mining claim permit. Othermandatory conditions on all mining permit claims (unless negotiated otherwise) include:

providing any documents, reports, returns, statements or other material as requested by adelegate of the department in the manner in which it is requested to be provided

carrying out improvement restoration as required.

removing any building, structure, equipment and plant brought onto the land by the holder, on

termination of the mining claim. complying with any terms or conditions set by the owner of the land or the Governor in Council

(this applies when the mining claim is located reserve land)

making all compensation payments and complying with any terms of a compliantcompensation agreement or determination

paying all rental, royalties, local authority rates and charges and security deposits prescribedin regulation or required under law

maintaining the marking out of the land, including survey pegs, for the duration of the claim

undertaking the work commitment set out in a proposed work program.

There are also conditions that may be attachedat the discretion of the mining registrar.Theseconditions include that you:

use, if practicable, only existing roads or tracks on the land to which the claim applies

take reasonable steps to ensure no reproductive material of a declared plant is moved onto,within or from the land to which the claim applies, refer to the Department of Agriculture,Fisheries and Forestry http://www.daff.qld.gov.au/4790_7005.htm for more information.

not allow an animal in the custody of the holder (or other person acting under the authority ofthe holder) to be on the land unless the land is adequately fenced to prevent the animal from

leaving or the animal is restrained. not discharge a firearm on the land unless the holder has the written consent of the owner of

the land and the consent has been lodged with the mining registrar (if the claim applies tooccupied land).

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Restricted areasRestr icted areas are tracts of land that have varying conditions and restrictions placed over them.The restrictions vary (according to areas), but generally relate to what mining activity can be carriedout. There may be other specific conditions that apply if the mining claim is in a declared restrictedarea (these can be identified by a search on IRTM or by referring to the Restr icted area registeron our website).

How we check that you are complying with conditions

There are several ways that we can check that you are complying with the conditions of approval.

Inspection of the mining claim

Mining claims can be inspected at any time at the discretion of the mining registrar. We are notrequired to issue notice of an intention to inspect a claim.

Inspections may also take place as part of the application assessment process. Applications forrenewals or transfers of interest in a mining claim may be inspected to ensure that all conditions

are being met before deciding to approve the application.

If you make good quality applications and have a track record of carrying out your miningactivities with a high level of compliance, you are less likely to have your claimsinspected on application for renewal.

Providing a statutory declaration of compliance

We may request that you supply a certifiedstatutory declaration to prove that you are complyingwith the mandatory conditions of your mining claim. You are required to identify which conditionsapply to your permit and declare that you have complied with those conditions.

Under the Oaths Act 1867, a statutory declaration must be witnessed by:

a justice of the peace

a commissioner for declaration or notary public under the law of the State, the Commonwealthor another state

a lawyer

a conveyancer or another person authorised to administer the Queensland oath, under the lawof the State, the Commonwealth, or another state.

Complaints from the public

We will thoroughly investigate any complaints we received from the public about the activities andconduct of a permit holder.

Not complying with your conditions of approval

If we find that you have not complied with the conditions of your claim approval, you may be issuedwith an Order to comply or a Notice to show cause. An Order to comply is issued when webelieve that the breach of conditions can be reasonably remedied (e.g. an untidy claim can be tidied,a blocked access way can be unblocked); while a Notice to show cause will be issued if the breach is

more serious, or if you have failed to comply with an Order to comply.This is the start of a compliance process, which can lead to prosecution and fines in some cases.

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Frequently asked questionsThis section addresses some of the frequently asked questions by holders of mining claims.

How often do I have to work on my mining c laim?There are no prescribed rates of how many hours per week or weeks per year that you must work

your mining claim. Rather, you must reasonably comply with the commitments in your proposedmining program and be able to demonstrate a reasonable level of mining activity over the term of themining claim.

Factors such as the availability of water for processing, illness, full-time employment, or having totravel from interstate or intrastate will obviously impact on the time you can spend working on yourmining claim. These factors should be considered when you submit your proposed mining program.

Can I leave equipment or material outside my mining claim?All structures, fences, equipment, tools, vehicles, rubbish, wash, overburden, topsoil or other materialmust be contained within the boundaries of your mining claim. Your mining claim must be kept in aneat, tidy and safe state.

Can I live on my mining claim?You may erect a temporary residence to use while the mining claim remains current. Theresidence may be a temporary structure and only be erected for a person who is legitimately using theland for mining activities. When your claim is surrendered, terminated or when it expires, thetemporary residence must be totally removed.

It is important to note that a mining claim cannot be converted into a land tenure, nor does itprovide any priority for an application under the Land Act 1994.

Can someone else have an access over my mining claim?The terms access is a description for a road or a track that allows another mining claim holder or landowner to get to their permit area or land. If their mining claim or land tenure was granted or applied forbefore your application they are entitled to continue to use that access.

If you need to block access for safety reasons or because you wish to mine through it or under it, youwill have to provide an alternative access of the same standard. To do this, you need to lodge anamended mining program with the mining registrar, showing the access to be closed and thealternative access provided.

Can I put a fence around my mining claim?You can erect a fence on the boundary of your mining claim or fence certain areas within yourmining claim (e.g. mine shaft entrances), but it is not compulsory to fence your mining claim.

You need to ensure that your fence does not go outside the boundary of your mining claim.

If your fence blocks access used by other permit holders or land owners, you will need to provide analternative access of at least the same standard. You need to ensure that any fence you erect doesnot interfere with access by Emergency Services.

You may need to consult with the owner of land about the type of fence to be constructed to ensureadequate control of any stock.

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Can I use machinery on my mining claim?Mining claims are granted for the hand mining of minerals. This means mining using handoperated tools, such as jackhammers, picks, shovels, gads, sieves and windlasses. Machinery maynot be used to prospect, explore or mine on a mining claim.

Mining refers to not only the winning of stone or wash but also the removal of any topsoil,overburden, spoil, waste rock etc.

Prohibited machinery includes:

Backhoes, bobcats, bucket excavators, bulldozers, clamshells, continuous miners, draglines,end-loaders, excavators, graders, loaders, rippers, rooters, scarifiers, scoops, scoopmobiles,scrapers, tractors or traxcavators, carts, cranes, locomotives, monorails, motor vehicles withor without a trailer, ropeways, dredges or a vehicle mounted drill.

You can use the machinery without prior approval from the mining registrarfor:

transporting mineral bearing ore or wash

transporting equipment, materials, or water, used for mining operations

building storage facilities for water used for mining operations (e.g. dams) rehabilitating the surface area of the land

drilling access shafts with a diameter of no more than 1m (within restricted areas 1, 25, 77refer to the MRR for more information).

If you need to use machinery for another purpose, such as constructing or repairing an access track,or levelling a pad for a shed, you must apply to the mining registrar and obtain approval beforecarrying out any work.

What if I want to mine underground?There are a number of requirements you must meet if you wish to mine underground.

Your mining program must outline the method and location of underground mining.

You may only have three shafts open at any time on your mining claim (if the mining claim islocated in restricted areas 1, 25 and 77) and ensure that the entry to any shaft is safe andsecure.

You must ensure that your underground workings are wholly contained within the boundariesof your mining claim/s and dont encroach into neighbouring land.

You must have at least two connected shafts when mining underground. This provides analternative surface exit and fresh air supply in the event of one shaft collapsing or becomingobstructed while you are underground.

For your own safety, if you are working underground, you should let either a partner or aneighbour know when to expect you back up on the surface or have an effectivecommunication system. If you are injured underground and no one knows that you aremissing, no one will be looking for you!

Can I build a dam on my mining claim?

You can construct a dam or install a water tank or other water storage for use with your miningoperation. Any dam, tank or other water storage must be shown on a current mining programlodged with the mining registrar. If it is not shown on your current mining program, lodge an updatedprogram with the mining registrar.

You may use machinery to excavate a dam or clear an area for a water tank.

You cannot hand mine in a dam excavation constructed with machinery.

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You cannot treat or process any material that is excavated with machinery for the dam.The excavated material must be stockpiled for backfilling the excavation if not used for construction ofa dam wall or levee bank.

Like any other excavation, you must ensure that your dam does not pose a danger to the public,livestock or fauna. This can be done by fencing the dam perimeter or erecting bund walls.

Particular attention should be paid when constructing a dam in the vicinity of underground workings. Ifthe dam is cut below the wash layer, water can travel through the wash layer and flood surroundingunderground workings. Care should also be taken to ensure that sufficient depth is left between thefloor of a dam and the ceiling of any underground workings below the dam.

Do I have to lodge a royalty return every year?If your production levels do not meet the threshold specified in Schedule 4 of the MRR, you are notrequired to lodge a royalty return. However, if you transfer or surrender your mining claim, you will berequired to lodge a royalty return at that time.

However, the Minister may require you to lodge royalty return for a period, whether or not any mineral

has been mined during that period. In this instance you will receive a written request from theDepartment. Refer to the Office of State Revenue for more information on royalty returnshttp://www.osr.qld.gov.au/royalties/index.shtml.

Do I need to let you know i f any of my details have changed?Its important that the mining registrar has your current address. If your contact details are not currentyou may not receive renewal notices, royalty return forms or other important information we issue. Incertain circumstances this could lead to the cancellation of your mining claim orsuspension/cancellation of your EA.

You can advise the district mining office of a change of address in writing or contact us and we willsend you a Change of address form. These are also available from our website.

What other important things do I need to know?Read everything the mining registrar office sends you! It provides you with important information.

You may face serious penalties, including the cancellation of your mining claim, for breaching theMRA or the conditions of your mining claim.

If you are unsure of anything, contact your district mining office for information.

If you are working on your mining claim, remember you are in a remote location. Ensureyou check all equipment and vehicles, be aware of flood and fire safety, advise someone ofyour plans and carry suitable communication equipment. Obey the rules and be safe!

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Safety and health informationTo protect the health and safety of everyone on the mine site you must comply with Mining andQuarrying Safety and Health Act 1999 and Mining and Quarrying Safety and Health Regulations 2001.This legislation can be located at www.legislation.qld.gov.au .

For further information about your health and safety responsibilities, please contact the Regional

Inspector of Mines in the appropriate region before you commence work:

Northern Region on (07) 4760 7408Central Region on (07) 4938 4605Southern Region on (07) 3238 3785

Further information can also be obtained from our websitehttp://mines.industry.qld.gov.au/safety-and-health/default.htm

Census forms

If your operation is 5 or less workers, you are required to lodge an annual Queensland Mining QuarryingIndustry Census Form.This form must be lodged within 20 days of the end of the financial year.

Operations with 6 or more workers are required to lodge quarterly data for the Queensland MiningQuarrying Industry Census Form. Queensland mining and quarrying operations are required to collectthe data and it is used for calculating the annual safety and health levy.The census form must belodged with the department within 20 days of the end of each quarter.

Operations with 5 or less workers are exempt from paying the annual safety and health levy. Operationswith 6 or more workers will continue to receive an invoice for the safety and health levy.

Penalties apply for late lodgement of forms and interest is payable on all overdue amounts.For further information please contact (07) 3836 0038 [email protected]
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Mining Claim Handbook General

Documents

Transcript of Mining Claim Handbook General