MINERALS EXPLORATION IN NORTH EAST VICTORIACommunity Information Session | Questions and

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Minerals exploration in north east Victoria

THEME 1 – Minerals exploration activities

Q. What sort of minerals might be present in north east Victoria?

What is involved in the exploration stage?

A. Geoscience research indicates there is potential for discoveries of copper, other base metals and gold in north east Victoria. 

The region has a long history of continuous exploration for minerals.

Once an explorer has a minerals exploration licence, field exploration usually starts with low impact activities such as aerial surveying, ground-mapping, rock sampling, water and soil testing.

Explorers take measurements through surveying, sometimes using magnetic or electrical instruments. Advanced technologies via aerial surveys can mean explorers do not need to access private property at all.

As the explorer learns more about the geology, the exploration program progressively focuses on much smaller areas, or targets, within the minerals licence boundary. Explorers may adopt more specific directed exploration techniques, such as drilling to sample rock at different depths below the surface.

Drilling is expensive and is used selectively. Drilling involves taking samples through a small hole – usually less than 100 millimetres in diameter – through soil and loose rock. This tells the geologist what types of rock exist under the surface and if minerals are present. If minerals are identified, explorers may drill deeper holes, often using diamond drills to cut through hard rock. Through this process the geologist can determine how much mineral material is present and give an indication of whether minerals may occur in economic quantities. At this stage, bulk samples may also be taken.

Q. What are the 'strategic metals' that were mentioned in the presentation?

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A. Metals which have been mined in the Yackandandah-Beechworth-Myrtleford Bright district in the past are gold (many places), molybdenite (at places like Everton), and tin (at Eldorado). Other metals in the district include silver and antimony.

Elsewhere in north east Victoria, there are deposits of copper and zinc as well as potential for emerging strategic metals like tantalum and lithium (commonly used in batteries).

Strategic (or critical) minerals are metals and non-metals that are considered vital for the economic well-being of the world's major and emerging economies, yet whose supply may be at risk due to geological scarcity, geopolitical issues, trade policy or other factors.

Q. What are the requirements to notify the community about drilling?

A. Licensees are expected to identify and consult with communities affected by proposed works.

The Code of Practice for Mineral Exploration (the Code) currently recommends consultation with nearby residents within 100m of drilling. Measures for mitigating noise are described in the Code.

Licensees must ensure that noise generated by exploration activities such as drilling do not exceed limits set by the Environment Protection Authority.

We expect explorers to take community consultation seriously. Communities should contact explorers directly about any concerns and explorers should be transparent about their work operations.

Q. What equipment and vehicles are used during exploration? Is there loud noise from machines and how close to homes are you allowed to operate?

What controls are in place with regards to noise and environmental impact from exploration/mining?

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What about vibration, which can very substantial, according to a friend who lived near drilling near Castlemaine last year.

A. Minerals exploration on-ground typically begins with geological mapping and analysis. These operations cause virtually no disturbance.

Technological advances mean that it is feasible and cheaper to undertake many surveys with small electric drones, which do not produce much noise.

This involves a single aircraft making repeated low-level flyovers in a grid pattern over the course of a day or two and these types of operations will have a noise impact comparable to aircraft-related activities such as crop dusting.

In the latter stages of minerals exploration, drilling may be used. The noise generated by drilling depends on the technique. Percussion drilling techniques are quite noisy and would not generally be undertaken close to homes.

In contrast ‘diamond’ drilling and related drill-coring techniques typically produce considerably less noise than a truck passing on the highway. These techniques are already very common in the goldfields of western and central Victoria and in eastern Victoria.

In such instances it has become common practice to control the sound and amenity impacts of minerals exploration drilling by housing the drill rig and associated infrastructure within a prefabricated and reusable sound-controlled enclosure.

Under the Code of Practice for Mineral Exploration , operating hours should be restricted to times that will not unduly annoy or disturb others in the area and in line with noise limits for rural areas specified in the Environmental Protection Authority’s (EPA) Publication 1411: Noise from industry in Regional Victoria (2011).

Noise emissions from exploration work sites and associated facilities must comply with limits set in the relevant State Environment Protection Policies, including those relating to the control of noise from commerce,

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industry and trade activities. Exposure to noise in and around sites should be managed in accordance with requirements of the Occupational Health and Safety Act 2004 and the Environment Protection Act 2017 .

Q. What does a ‘work plan’ potentially look like if exploration was to go beyond low impact?

What is the size, construction footprint, and potential impact of activities under a work plan?

A work plan is not required for low impact exploration activities (as defined in section 40 of the Mineral Resources (Sustainable Development) Act 1990 (MRSD Act) ) . For any work falling outside this definition, an explorer must develop a work plan which must be approved by Earth Resources Regulation.

Work plans may be referred to other government agencies for specialist advice, include the Department of Environment, Land, Water and Planning (DELWP), Catchment Management Authorities and Water Authorities, where relevant.

A work plan will outline the work the licensee proposes, including:

details of potential environmental impacts measures proposed for control or mitigation and for monitoring,

auditing and reporting a description of the proposed rehabilitation of any areas subject to

ground disturbance a description of any sites identified for drilling or earthworks proposed consultation with landowners, Crown land managers, and

local councils site-specific conditions such as scale, operational activities, and the

size and proximity of local communities.

For further information about work plans visit here.

Q. Is minerals exploration permitted in townships?

Is there a minimum distance that exploration/drilling can occur from dwellings?

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Can mining be undertaken underneath private farmland or residential housing? If so, what rights does/doesn't the owner have?

How close to existing buildings are they allowed to explore?

A. Like elsewhere in Australia, the Crown (State) owns minerals on behalf of all Victorians. Generally, landholders own their land to a depth of 15 metres, depending upon the land title.

Minerals exploration is permissible within townships, where they are covered by an exploration licence. However, a licensee must not do any ground disturbing work under the licence (e.g. drilling or trenching) within 100 metres laterally of, or within 100 metres below, a dwelling that existed before an approved work plan was registered in respect of the licence. Written consent from the property owner, however, may allow such work to proceed.  

Locals are encouraged to ask the licensee about their intentions regarding activity within or near to townships, including tourism facilities.

Q. What time frame are you looking to mine and what for?

A. Exploration licences are generally issued for five years, with the option to renew the licence usually for a further five years.

In the event a commercial deposit was identified as part of exploration, there is a robust approvals process that a company is required to go through to obtain a mining licence and undertake mining activities.

This process is expensive and can take between 10 years and 20 years from the commencement of exploration to approving a commercially viable minerals development project.

Q. Will family residences on small acreages close to town be affected and, if so, what are the long- and short-term repercussions?

A. The underlying geology is the key determinant of where an explorer seeks to work.

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In most cases, explorers try to avoid small acreage properties. This is because they are not permitted to do any work within 100 metres of a dwelling.

Locals are encouraged to ask the licensee about their intentions regarding activity type, timing and locations.

Licensed explorers are required to keep communities informed about their activities.

Q. If minerals are found, what type of mining will occur, e.g. land stripping, digging etc.?

If exploration is successful, will mining be open-cut or underground?

The geology of the district suggests that new discoveries of economic gold mineralisation are likely to be within bedrock at considerable depth, so that any potential mine would likely be underground.

What would be your estimate of the footprint of any mining operation that may eventuate, i.e. big open-cut, small surface operation for a big underground mine, etc?

If mining operations commence, will it be 24 hours and what route will the trucks use to the processing plant?

What are the plans if some minerals are discovered in the area?

A. The type of mining activity that might occur (i.e. open-cut or underground), timing of operations and potential transport routes would depend on the nature of the underlying geology.

The geology of the district suggests that new discoveries of economic gold mineralisation are likely to be within bedrock at considerable depth, so that any potential mine would likely be underground.

However, first an economically viable resource must be found. The application process to build and operate a mine in Victoria is very rigorous. It involves detailed environmental, heritage, land planning, water and

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other approval processes and assessments, and detailed studies to assess potential environmental, social and economic impacts.

Q. What ability do exploration/mining companies have to mine on or under our private land if gold is found in the area, and is compulsory purchase a risk?

Applications for mining activities involve detailed and stringent planning approvals and regulatory controls. Studies are undertaken to assess potential environmental, social and economic impacts, how these will be managed, and extensive consultation with communities. This process is expensive and can take between 10 years and 20 years from the commencement of exploration to approving a commercially viable minerals development project.

In addition to government approval, the company is also required to secure the land required to undertake mining activity (either via outright purchase or lease from the existing landholder).

Q. Are new roads allowed to be constructed through otherwise untouched bushland?

A. The licensee is obligated to discuss passage of tracked equipment along existing roads or over bridges (and any rehabilitation that might be required) with the responsible road authority.

The use of closed roads or undertaking work on existing roads will require the consent of the owner or occupier of the land.

Explorers may create new tracks on Crown land with the consent of the Crown land manager (DELWP).

Explorers use lightweight drill rigs and excavation equipment where practicable to minimise impacts on public and private roads. If road damage is incurred the responsible road authority can seek recompense under the provisions of the Road Management Act 2004.

The licensee will be responsible for determining the owner or occupier of the land by searching the VicRoads Register of Public Roads or the relevant local Council’s Register of Public Roads.

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Q. Can you please share the previous/historic grades of the older mines, and any other approximate metrics - tonnes mined, life of mine, intersection widths, etc. to get a sense of scale of the old operations?

A. There are hundreds of older/historic mines of various types and sizes in the district with varying quality of production statistics recorded. It is therefore not possible for us to provide a comprehensive or even ‘generic’ answer to this question.

Fortunately, all recorded mine locations and names and associated mining production data are captured in a Department database and this database has been made available to the public via GeoVic.

We advise that interested parties use the GeoVic application to view the ‘Mines and Mineral Occurrences’ data layer - recorded production statistics and other data attached.

Q. We have E79 Resources actively mining as we speak. They are not listed. Why is this?

A. Dusko Ljubojevic (founder and advisor to E79 Resources) already holds a minerals exploration licence (EL006724) and therefore was not listed on the applications table presented during the online session.

The work being undertaken on this licence is minerals exploration, rather than mining. Mining activity is not permitted under a minerals exploration licence.

Q. What are the grounds on which objections or comments result in rejecting an application? Has a licence ever been refused on the basis of public comment?

A. The criteria for granting or not granting a licence are outlined in section 15 (6) of the MRSD Act. This includes:

That the applicant is a fit and proper person to hold a licence; The intention of the applicant to comply with the MRSD Act; That the applicant genuinely intends to do the work; That the applicant has an appropriate program of work; and

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That the applicant is likely to be able to finance the proposed work and rehabilitation.

Between 2014 and 2020 there have been three minerals exploration licences refused based on the criteria outlined in section 15 (6) of the MRSD Act.

Objections could lead to a licence being granted for a smaller area, for example to exclude areas of community sensitivity that are not sufficiently protected under existing laws or to special licence conditions being imposed on the licence.

Q. Can I still fossick (using a metal detector or pan) in an area that has an approved exploration licence?

A. If you want to fossick in Victoria, you need a current fossicking permit known as a miner's right. A miner's right allows you to remove and keep minerals discovered on (selected areas of) Crown land, your own land, land under a minerals exploration licence, or private land (where the landowner has given permission).

A 10-year miner's right costs $25.20 and is for individuals only (not businesses). 

You can use picks, shovels, hammers, sieves, shakers, electronic detectors and other similar tools. Machinery is not permitted, and no explosives can be used on the land.

You can find further details on the Earth Resources website here.

Q. Why does Earth Resources fund exploration companies, in particular given the billions of dollars from it has made from Fosterville, why did Earth Resources give Kirkland Lake Gold $140,000?

A. The Department of Jobs, Precincts and Regions’ TARGET Minerals Exploration Initiatives is a Victorian Government grants program to encourage investment in regional and rural Victoria. The program provided grants, under a dollar for dollar matching arrangement (up to $500,000 maximum) to attract greater investment in the exploration for gold,

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copper and other base metals in Victoria. It has also funded geoscience activities which provides the base information explorers require to investigate further.

TARGET grant funding is made available through a competitive application process.

In May 2017, five projects were selected to share in almost $1.3 million in grants to explore for gold and base metals in the northern part of the Bendigo geological province.

Fosterville Gold Mine was allocated $153,538 to support exploration activities within Exploration Licence 3539.

Q. Given the interest from explorers due to a strong gold price, Victorian Government promotion and pretty good chances of discovery (due to relatively little deep drilling), has the government already looked at the suitability across the region for the location of tailings dams i.e. there is likely only limited suitability or appetite?

A. Any extraction and/or treatment of tailings is considered a mining activity under the MRSD Act and requires a Mining Licence and approved workplan to be able to be undertaken.

Tailings storage facilities also require planning approval and a work plan, which would be referred to the Environment Protection Authority.

Q. I thought there were restrictions around proximity to residences, heritage buildings, etc, so an Exploration Licence application over the Carlton Gardens most likely wouldn't be granted?

A. The MSDA Act exempts a range of classes of public land from minerals exploration and mining licences, including national parks and state parks. DELWP, on advice from the Victorian Environmental Assessment Council, is responsible for public land classification. 

The MRSD Act also provides additional safeguards for work on restricted Crown land. Licences can be granted over restricted Crown land, but

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consent must be obtained from the Crown land manager before any work can take place on the ground. These include a range of classes of Crown land, including regional parks, bushland reserves and historic reserves. 

The MRSD Act also provides a mechanism to exempt particular areas on a case-by-case basis, taking into account the geological prospectivity of an area and other social, economic and environmental values. This is for the orderly development of resources, which has been done in recent times to facilitate tender processes for licence applications in the North Central Goldfields region and the Stavely Province in western Victoria. There are also recent examples where the You Yangs and Mitchell River Flood Plain have been exempted from a licence. 

The Melbourne CBD is not exempt from licences under the MRSD Act. In practice, an exploration licence is unlikely because there is low geological prospectivity in that area. 

Q. Who is responsible for overseeing the before and after process (i.e. licensing and rehabilitation)?

A. Earth Resources Regulation within the Department of Jobs, Precincts and Regions is responsible for overseeing the licensing and rehabilitation of exploration sites and ensuring compliance of licensees with the MRSD Act.

Q. How are regulation requirements monitored and enforced?

What are the consequences resulting from non-compliance?

A. Earth Resources Regulation manages site compliance. A minerals exploration licensee must comply with an approved work plan. If they are found not to have complied with a work plan, then notices can be issued by the compliance team.

In the first instance remediation is required. If a licensee fails to comply with a notice, there is potential, depending on the type of non-compliance, for the regulator to issue penalties of up to 2,500 penalty units, which equates to around $400,000.

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THEME 2 – Land access and compensation

Q. If Currawong Resources accesses our property what protocols are in place as we have livestock?

Is minerals exploration safe for our livestock?

A. Licensees must adhere to any biosecurity protocols that have been adopted on private land. They must also comply with biosecurity obligations set out in relevant legislation. For example, licensees must take all reasonable measures to minimise the spread of weeds, pest animals and plant diseases and to prevent adverse impacts to livestock and crops whilst undertaking exploration activities. These factors should be documented in any land access consent agreement.

Q. Can you confirm private landowners cannot refuse to allow companies to prospect or mine on private land?

Can you explain the process whereby a landholder or farmer can prevent a mining company from accessing their land? Who is responsible for the legal costs involved?

If VCAT or the Supreme Court can't rule on access, then who can?

Is it right that we don’t have the right to refusal because the mining company can take it further if they choose to?

What about the landholder who does NOT want exploration on their property in any circumstances, therefore NOT interested in compensation?

Can you refuse access to your land to an explorer / miner?

A. As the Crown owns the minerals, landowners and occupiers do not have the absolute power to control access to their land.

In Victoria, like all other states in Australia, the Crown owns the minerals on behalf of all the people. An Act of Parliament, the Mineral Resources (Sustainable Development) Act 1990 (MRSD Act) gives the Government the right to grant licences to companies to search for minerals. They can generally undertake that search on both Crown land and freehold land.

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The MRSD Act allows access to freehold land for exploration activity with the prior consent of the landholder and/or occupier, including compensation, if applicable.

If agreement cannot be reached, landholders and exploration companies can seek mediation through the Mining Warden. If mediation does not achieve an outcome and the landholder does not provide consent and/or an appropriate amount of compensation cannot be agreed, then either party may refer the matter to the Victorian Civil and Administrative Tribunal (VCAT) or the Supreme Court.

VCAT or the Supreme Court will determine how much compensation you are entitled to, not whether the licensee has the right to search for minerals on your property.

Once compensation has been determined by VCAT or the Supreme Court, exploration may be undertaken on the landholders’ property.

Landholders are encouraged to seek their own legal advice on these matters. Normal costs rules would apply (ordinarily each member bears their own costs) but ultimately this is a matter for the Tribunal or Court to make a ruling.

Q. What rights do private landholders have if an exploration licence is granted over their land?

Private landholders have the right to negotiate terms and conditions regarding access to their property as part of minerals exploration activities, noting that minerals exploration is very targeted in nature and often only a very small number of landholders are approached by explorers seeking access to their property.

As described in the department’s Land Access Consent Tool, you may wish to establish protocols regarding biosecurity, communications, time of operations, entry and exit points, livestock movement, etc.

Q. I understand that exploratory mining is low impact, but we are focused on the bigger picture. We don't want a mine. We like the land the way it is. Who represents us?

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A. The department is responsible for delivering on the government’s agenda and delivering programs and initiatives in line with its social, economic and environment objectives. This includes the creation and jobs and wealth in regional areas.

The MRSD Act encourages an economically viable mining industry to operate in a way that supports the environmental, social and economic objectives of the State.

There are opportunities for the community to have their say on new minerals exploration licence applications. For more information, visit here.

Q. Do explorers pay for the farmers’ legal advice when negotiating a land access agreement?

If I take the explorer to VCAT who pays for that?

If I say no to access and am taken to court, who is responsible for legal fees?

A. A licensee should pay for the reasonable professional costs incurred by a landholder in negotiating land access consent and the reasonable costs of determining any compensation. This is because negotiating access consent is not core to agricultural businesses and landholders are generally not familiar with the scope of the terms and conditions which may be established as part of an agreement.

If the matter proceeds to VCAT or the Supreme Court, landholders are encouraged to seek their own legal advice on these matters. Normal costs rules would apply (ordinarily each member bears their own costs) but ultimately this is a matter for the Tribunal or Court to make a ruling.

Is it right that we don’t have the right to refusal because the mining company can take it further if they choose to?

A. The Victorian Civil and Administrative Tribunal (VCAT) is available where discussions between the parties have failed to achieve a satisfactory land access consent agreement and should be used as a last resort.

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At VCAT, parties are expected to bear their own costs, unless VCAT orders otherwise. VCAT may only award costs if it is fair to do so.

Q. What will be the financial compensation to landowners?

Will there be financial compensation for access to drilling on our property?

What do landholders gain/get out of it?

Compensation is payable by the licensee to the owner or occupier of private land for any loss or damage that has been, or will be sustained, as a direct, natural and reasonable consequence of doing of work under the licence including:

Damage to the surface of the land or to any improvements on the land severance of the land loss of amenity, including recreation and conservation values loss of opportunity to make any planned improvement on the land any decrease in the market value of the owner or occupier's interest in

the land. Any reasonable incidental expense in obtaining or moving to replace

land (when required).

The MRSD Act does not state that these are only factors for which compensation is payable. It also does not stipulate which type of activity requires compensation to be paid.

Written compensation agreements must be lodged with the mining registrar for registration.

Compensation may include a cash payment or in-kind payments (including things of value to the landholder, such as a new access road or fences). The value of the compensation to be paid is a commercial negotiation between the explorer and the landholder.

Compensation is not payable for the value of the minerals, nor is it a prerequisite for landholder consent.

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Landholders should seek legal advice as to their rights and should seek professional advice on compensation.

Q. Is the landowner entitled to any percentage of the value of gold, if mined on the property?

A. All mineral resources belong to the people of Victoria and are therefore owned by the Crown. When minerals are mined, under the proper authority, they become the property of the person extracting them. Companies generally pay royalties on the minerals extracted as compensation to the people of Victoria.

Q. What job opportunities and additional industry will be created through the project proceeding?

How much expenditure on mineral exploration occurred in Victoria in 2020?

A. The job numbers and economic benefit associated with minerals exploration is much lower than mining. Most of the economic benefits associated with minerals exploration come in the form of spending within the region on goods and services on items such as fuel, food accommodation, etc.

REMPLAN economic data for the last financial year shows spending on minerals exploration across north east Victorian local government areas was $3.74 million but that was concentrated within the Mansfield, Wangaratta and Wodonga local government areas.

Across a number of local government areas within north east Victoria the reported minerals exploration expenditure was zero.

Mineral exploration expenditure in Victoria increased by 33 per cent in 2019-20 to $136.5 million, up from $102.3 million in 2018-19 (seasonally adjusted).

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Q. What are the benefits to the landowners from future projects that may be done on their land?

A. Where compensation is required, landholders will receive payment on terms they negotiate with the explorer.

Landholders, like local communities, also benefit indirectly from regional economic flow-on effects because the explorer will spend locally on fuel, equipment, food and staff accommodation. Explorers may also employ local people to assist with exploration and rehabilitation work.

In the last financial year, minerals exploration licence holders in Victoria’s north east have spent $3.74 million on exploration activities and are likely to spend millions more on exploration activities in the region over their five-year licence terms.

THEME 3 – Environment and Cultural Heritage

Q. Why would you attempt to mine a beautiful environment that relies on tourism predominantly based on the environment? What will be the environmental damage?

Can Earth Resources guarantee that Currawong Resources won't drill in areas 1.5km north-west of Mount Beauty and 2km east of Porepunkah including the towns of Bright and Harrietville?

Were the potential environmental impacts of the licence applications fully explored?

A. Minerals exploration and mining licences cannot be granted over National Parks, State Parks and wilderness areas. Exploration licences can be granted over private land and other types of Crown land. Licence applications containing Crown land are referred to the Crown land Minister, who may recommend special licence conditions.

Consent is required from the Crown land manager (usually with conditions) to work on restricted Crown land, which provides additional safeguards in areas such as flora and fauna reserves, regional parks, bushland reserves and historic areas or reserves.

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Minerals exploration is permissible within townships, where they are covered by an exploration licence. However, a licensee must not do any ground disturbing work under the licence (e.g. drilling or trenching) within 100 metres laterally of, or within 100 metres below, a dwelling that existed before an approved work plan was registered in respect of the licence. Written consent from the property owner, however, may allow such work to proceed.

Mineral exploration activities are mostly low impact. Higher impact exploration activities require an approved work plan, which sets out how risks will be managed and the land will be rehabilitated.

An Environment Effects Statement would be required if a mineral resource were discovered, and a proposed mining development had the potential to cause significant effects on the environment.

Q. What will be done to ensure the natural environment is not impacted into the future?

A. The activities of licensed minerals exploration companies are governed by more than 20 acts and regulations.

Legislation which helps safeguard the things important to a community, include the Flora and Fauna Guarantee Act 1988, Water Act 1989, Aboriginal Heritage Act 2006, Environment Protection Act 2017, and the Catchment and Land Protection Act 1994.Most minerals exploration activities have minimal or no impact on the ground. This includes, soil and rock sampling, stream water sampling and in-field and aerial surveying.

Exploration companies must obtain a work plan approval when their activities are likely to exceed certain threshold limits which define low impact exploration.

To obtain a work plan, the company must describe its exploration activities in detail, identify each of the environmental and other risks posed by the activity and outline the strategies that will be employed to mitigate those risks.

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Earth Resources Regulation assesses these work plans and may refer matters to other agencies for further assessment.

Q. To what extent are mining companies permitted to explore/mine on/under state or national park land?

Can mining be undertaken beneath a national park?

A. Exploration is not permitted in state or national parks, except for a very small number of pre-existing licences, for example, in instances where the licence was granted before the gazettal of the park.  

Q. If we are planning ecological improvements or restoration, is that area exempt from any mining?

Are there exemptions from mining if projects for landscape restoration are planned?

A. Landscape restoration such as grass and wetlands projects are generally identified in the early discussions that an explorer would have with local Department of Environment, Land, Water and Planning (DELWP) and Catchment Management Authority officers.

Where there are proposals for the clearing of native vegetation, those proposals will be assessed by DELWP in accordance with the requirements of the Flora and Fauna Guarantee Act 1988 (FFG Act) and the Biodiversity assessment guidelines. However, this does not apply when the exploration activities occur in accordance with the definition of low impact exploration (see Code of Practice for Mineral Exploration).  

Q. Can landowners refuse access to sensitive property?

A. Explorers must obtain consent or enter into a compensation agreement with landowners before entering a property. If agreement cannot be reached, VCAT can determine the amount of compensation payable. Landowners do not have absolute power to refuse entry because the Crown owns minerals in the land.

The department recommends landholders make known to explorers any sensitive sites when negotiating the terms and conditions for consent to

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access private property. Many landholders who have areas of their property that possess high biodiversity values have sought greater safeguards, including through Trust for Nature (TFN) covenants.

The licensee must take all reasonable measures relating to crops, livestock, native vegetation and faunal habitats, so it is highly likely they will be amenable to avoiding these areas and addressing landholder concerns.

Q. Will there be any chance of effects upon water quality: underground and surface?

Are the waterways likely to be impacted by the potential mining activities?

A. The Code of Practice for Mineral Exploration provides guidance to minerals exploration licensees on their obligations to minimise the risk of impacts on the environment. This includes references to relevant standards that licensees must comply with, such as the State Environment Protection Policy (SEPP) Waters.

Where the exploration work includes activities that do not meet the definition of low impact exploration, licensees must submit a work plan application to the department for approval. This includes ground intrusive work within 200m of a named waterway or the use of heavy earth moving equipment.

The work plan must identify the hazard and risk, such as impact to surface and groundwater, and include a risk management plan that sets out the measure to be applied to eliminate or minimise the risk as far as reasonably practicable.

Work plans are referred to DELWP, catchment management authorities and water authorities for comment.

Q. Why is the Heritage-listed Lower Ovens River and tributaries included in the proposed licence area?

A. The Ovens River and its tributaries are safeguarded by several regulations, including those under the MRSD Act and Water Act 1989.

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A minerals explorer cannot undertake exploration activity within 200 metres of a named waterway. If an explorer chooses to do so they would require a work plan.

A work plan automatically triggers a higher level of regulatory oversight. The explorer would have to submit a work plan identifying all environmental risks that its proposed activities might pose and the planned mitigation strategies.

Earth Resources Regulation will refer the work plan to DELWP, the local catchment management authority and water authority. Earth Resources Regulation will not approve that work plan until DELWP, the water authority and/or the local catchment management authority provide advice on the mitigation strategies proposed by the explorer are enough to ensure they comply with the Water Act 1989 and other related environmental regulations.

Reserves are also often safeguarded by regulations in other acts, depending upon the type and nature of the reserve. The same process applies as for water. If the reserve is restricted Crown land, then the explorer must complete a work plan and DELWP would be referred this before the explorer could start work.

Special permission must be obtained for minerals exploration on restricted Crown land including flora or flora and fauna reserves, wildlife reserves or wildlife areas, natural features and scenic reserves, scenic reserves, cave reserves, geological reserves, bushland reserves, historic areas or historic reserves, public land water frontage reserves and streamside reserves.

Q. Will this exploration licence override existing covenants on titles?

A. Conservation covenants generally impose limitations on the use of that land for both the current and future landholders of the property.

Legal rights to the topsoil are held by the property owner, while legal rights to the minerals below the soil are held by the Crown. As a result, the security of existing covenants is not a given.

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Q. How much weight is given to the impact of exploration and drilling on indigenous flora and fauna?

Several State and Commonwealth acts provide safeguards to threatened species of flora and fauna and their habitats, including the Flora and Fauna Guarantee Act 1988, Environment Protection and Biodiversity Conversation Act 1999 and the with additional safeguards provided under the MRSD Act. Explorers are required to comply with these laws.

Additionally, exploration activity does not qualify as ‘low impact’ if it may harm, or damage, flora or fauna listed under section 10 or Schedule 2 of the MRSD Act. For exploration that does not qualify as low impact, licensees must obtain an approved work plan which requires approvals from relevant government agencies in relation to matters such as environment, cultural heritage, etc.

Q. Are miners allowed to remove native trees/vegetation on private land (whilst landowners aren't - e.g. to get access)?

A. Limited native vegetation removal is permitted in accordance with the definition of low impact exploration in Schedule 4 of the MRSD Act. To ensure compliance with the definition of low impact exploration the licence holder must keep records of native vegetation clearing. These records must be made available to the department or DELWP officers on request and the cumulative area of native vegetation clearing must be reported on an annual basis.

Any removal of native vegetation above these limits requires an approved work plan. The DELWP Guidelines for the removal, destruction or lopping of native vegetation apply to native vegetation clearing under a work plan. These are the same guidelines that apply to landowners.

Q. Have you notified the Taungurung and Yorta Yorta people of EL007413 and EL007420?

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A. Under the MRSD Act, it is a requirement to notify relevant Registered Aboriginal Parties (RAP) of exploration licence applications within the RAP area within 14 days of the application being accepted.

EL007413 falls partly within the boundaries of the Taungurung Land and Waters Council Aboriginal Corporation, which has been notified of the application

EL007420 doesn’t lie in an area with formal recognition of Traditional Owners and so no notification under the MRSD Act is required.

Q. Why are exploration licences issued in water catchments?

A. Exploration licences typically cover large areas that include water catchments.

There are strict regulatory controls under the Water Act 1989 and the MRSD Act regarding drilling and the safeguarding of groundwater.

Under a minerals exploration licence, a licensee must ensure all reasonable measures are taken to minimise the impacts of drilling. The licensee must prevent contamination of aquifers and not drill within 200 metres of a named waterway or within 100 metres of an irrigation channel.

Licensees must obtain a work plan approval when their activities are likely to exceed threshold limits which define low impact exploration, which includes any potential risks to groundwater. Additional approvals from water authorities may be required in certain circumstances.

Q. Will water be accessed from the Ovens and Buckland Rivers that will be detrimental for environmental flows etc?

A. Under a minerals exploration licence, the licensee must ensure all reasonable measures are taken to minimise the impacts of their operations. The licensee must prevent contamination of aquifers and not drill within 200 metres of a named waterway or within 100 metres of an irrigation channel.

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Minerals exploration generally doesn’t use large volumes of water, or take water from existing waterways. Where water is used, this is usually for drilling and dust suppression and is brought in.

Whenever there is an intention to drill to take groundwater (for purposes other than for stock and domestic use), a licence is required under the Water Act 1989. This law applies to minerals exploration companies, just as it does for farmers and other landholders. This includes where a minerals explorer drills to take water samples rather than geological samples.

The accessing of water from the Ovens and Buckland Rivers, would be subject to a take and use licence. A take and use licence is either a fixed term or ongoing entitlement to take and use water from a waterway, catchment dam, spring, soak or aquifer.

Each licence has conditions set by the Minister for Water which are specified on the licence.

Q. What obligation would Currawong Resources have regarding restoring and repairing the land after excavation?

What is the obligation to return property to the way it was before exploration (rehabilitation) and is there a required time frame?

Can they (i.e. licensees) be made to rehabilitate the bulldozer damage they've created?

What is the extent of the rehabilitation obligations for a miner? For instance, if mining works introduces pests or weeds or removes apex predators from a region then the environmental impact may extend well beyond the area of the exploration or mining licence. Where does their liability end?

A. The licensee must ensure that disturbed areas are rehabilitated as soon as possible after the completion of exploration works. The licensee must ensure that indigenous species used in rehabilitation are sourced from the local area, of local provenance and appropriate to the site’s Ecological Vegetation Class (EVC).

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All disturbed areas must be revegetated and reinstated back to the natural surface, or to a stable landform similar to that of the surrounding undisturbed areas, unless otherwise specified in the work plan.

There are specific guidelines provided to explorers in the Code of Practice for Mineral Exploration available on our website.

Further information can be found on the Earth Resources website.

Q. How do you explain the systemic failings of Earth Resources from the Auditor-General’s Office? How will this be different in the future?

What steps has Earth Resources taken to address the criticisms of monitoring and enforcement of rehabilitation activities made in the Victorian Auditor-General’s Office report Rehabilitating Mines dated August 2020? If there is comparative data showing the differences in performance of monitoring and enforcement of rehabilitation activities, what does that data show? (e.g. number of on-site visits to monitor rehabilitation prior to and subsequent to the report?

A. In 2018, Earth Resources Regulation initiated a program to improve the regulation of site rehabilitation following a self-initiated internal audit. This program is being delivered through the Regulatory Practice Strategy for the Rehabilitation of Earth Resources Sites, and includes developing a modern policy framework, updating the bond calculator and requiring the operators of key sites to complete site rehabilitation. 

The Victorian Auditor-General’s Office (VAGO) audit confirmed the issues and improvements identified by Earth Resources Regulation and recognised that Earth Resources Regulation has already taken serious and considerable steps to improve the way it regulates mine and quarry rehabilitation. 

Earth Resources Regulation welcomed and accepted the VAGO recommendations and as a result has further bolstered the actions it is

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taking to protect the community and environment from the risks associated with site rehabilitation. 

In November 2020, Earth Resources Regulation released a progress report on its actions so far in implementing its commitments from both the Rehabilitation Strategy and the VAGO recommendations. This report is on our website. A more detailed progress report will be published mid this year. 

For the full list of the department’s action commitments in response to the VAGO audit, visit the Victorian Auditor General’s Office.

Q. How much has the mining company allocated, budgeted for and protected for restorative work?

Are bonds required to ensure rehabilitation can be done should the miner run out of money?

A. A rehabilitation bond is a financial security paid by a minerals exploration licence holder before commencing work to ensure rehabilitation can be undertaken by the department should the licensee fail to meet their rehabilitation obligations.

The condition of a rehabilitation bond is that the licensee rehabilitates the land as required by section 78 or 78A of the MRSD Act.

Earth Resources Regulation requires that all land is rehabilitated to an appropriate standard (i.e. in relation to public safety, amenity and potential impacts on the wider environment).

Rehabilitation bonds are periodically reviewed during the life of an operation to ensure that the financial security remains at an appropriate level. The bond is also reviewed when a work plan variation is submitted, a tenement is transferred, towards the end of the bond period, or when requested by the licensee.

Regular assessment of the rehabilitation bond against the rehabilitation liability provides incentive for a licensee to minimise environmental impacts and undertake progressive rehabilitation.

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Currently, the department only accepts rehabilitation bonds in the form of an unconditional bank guarantee. The amount of bond is calculated to address in full the rehabilitation liability based on the works specified in the approved work plan or for simple operations or operations working under a code of practice, on a per hectare basis. For an initial bond, this is based on the point of maximum disturbance for the first stage of the development as specified in the approved work plan.

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THEME 4 – Community engagement and regulatory matters

Q. How come the community didn't get any notice of this mining exploration to go ahead. We were not given time to put in a submission of objection or otherwise?

Why were we not informed of how and when to object?  

How often have exploration applicants notified landholders directly? How is this done?

What has to be advertised by the exploration licence applicant and how widely?

A. All minerals exploration licence applicants in Victoria are required to advertise details about their application in a newspaper that circulates in each locality where all or part of the area that is the subject of the application is located.

In addition, exploration licence applicants are also required to advertise in a Wednesday edition of a newspaper circulating within Victoria.

Further information about advertising requirements for minerals exploration licences is available in Advertising Requirements: Guidelines for Minerals Exploration, Retention and Mining Licence Applications.

A public objection and comment period runs for three weeks after the last date the application was advertised. Objections can be lodged online.

For further information about notification of landholders directly by licence applicants, beyond the requirements outlined above, please contact the licence applicant directly.

Q. How can you ensure the community will be adequately consulted with throughout these applications in a climate where face-to-face gatherings are less common? How will all members of the community be heard?

A. Public health advice and restrictions on indoor gatherings have required the department to adapt its approach to engaging local

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communities in 2020, with a number of sessions delivered as online webinars.

With restrictions now easing, the department is looking to resume its in field engagement activities.

If you would like to arrange a briefing for your community group about a specific issue please contact mdv@ecodev.vic.gov.au.

We appreciate that for some people that online format is challenging and feedback and suggestions for improvement regarding the department’s engagement is always welcomed. Please email mdv@ecodev.vic.gov.au with any feedback or suggestions you might have.

Q. What are the next steps for assessing this application and where will the community be invited to give input?

A. Currawong’s two licence applications (EL007413 and EL007420) are currently being considered by Earth Resources Regulation.

The objections period for these licences closed on 23 December 2020

Earth Resources Regulation considers all objections and comments before deciding whether or not to grant a licence.

Objections may result in extra conditions being placed on the licence.

Q. How much information does an exploration company need to give about its exploration program?

Regarding consulting with community, what is the “community” and what is the obligation on the applicant?

A. Applicants must publish details of their work program on their website in accordance with the Advertising Requirements: Guidelines for Minerals Exploration, Retention and Mining Licence Applications, to allow community the find out more about the program and have an opportunity to comment or object.

Current applications and company website addresses can be found here.

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The Community Engagement Guidelines for Mining and Mineral Exploration in Victoria outlines our expectations of the minerals sector regarding community engagement once a licence is granted.

The guidelines provide practical advice on the duty to consult, community engagement plans and models of community engagement.

Q. In recent years, two exploration licences were withdrawn in the Macedon Ranges (Macedon Resources 2018 and Syndicate Minerals 2020). Both had significant public petitions against them. Is this why mining was halted in these instances and, if so, is it likely the applications for exploratory licences will be revoked after the recent petition with over 19,000 signatures?

A. The withdrawal of applications is not a decision made by the Earth Resources Regulation.

A withdrawal of an application is at the discretion of an applicant.

The public has 21 days to submit comments and objections following the advertising of a minerals exploration licence application.

Depending upon the nature of those submissions, additional licence conditions could be included to mitigate the concerns raised by the community or a licence could be granted for a smaller area.

Q. How will Currawong Resources communicate with me?

Does this explorer plan to phone or write to landholders?

What do we do if we don’t hear back in a timely fashion?

A. Minerals exploration licensees have a duty to inform and consult the community during all stages of a project, from exploration through to rehabilitation. This means a licensee must share information with the community about any activities authorised by the licence that may affect that community. The department has encouraged licensees to make information about their exploration programs available on their websites, and to keep this information updated.

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Besides their website, other methods may include telephone calls, face-to face meetings, notice board posters, roadside signage, information fliers, hotline or phone-in opportunities and media advertising.

The department also uses several channels to keep communities informed about minerals exploration and how it is regulated to provide safeguards to you and the environment. This is done via newsletters, information sessions and community events and property visits (under Coronavirus (COVID-19) restriction guidelines). 

Before on ground activity can commence, the licensee is required to contact the affected landholders to discuss the implications of their proposed activities and obtain consent from the landholder or reach a compensation agreement with the landholder.

Q. Who is the point of contact for follow up consultation and questions as the application progresses?

A. For any questions regarding minerals exploration licences and applications contact Earth Resources Regulation on 1300 366 356 or via email at licensing.err@ecodev.vic.gov.au

Q. Is "ranking" based on potential to find gold, vs likelihood the mining will have the least social and environment impact?

A. When an application is received by Earth Resources Regulation, the first step is to identify that it’s a valid application in accordance with the provisions under the MRSD Act and regulations.

Sometimes more than one application is received on the same day, and these applications need to be ranked on which best meets the objectives of the MRSD Act in terms of its work program, and whether the applicant is likely to find minerals.

The highest ranked application is formally accepted under the MRSD Act. The acceptance phase triggers the advertising requirements for the public comment period.

Q. Can you comment on the required reductions in exploration licence land holdings over the life of an exploration licence? Part

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of the reason for large areas is to allow for required drop-offs in ongoing years, additional land is sometimes selected in order to allow for drop-off.

A. Based on Mineral Resources (Sustainable Development) Act 1990 (MRSDA) Section 36 and Sections 38A(1), (2), (2A) and (2B), during the life of an exploration licence, the area covered by the licence must be reduced by:

At least 25% on the second anniversary of granting the licence At least a further 35% of the area as originally granted, on the fourth

anniversary At least a further 20% of the area as originally granted, on the

seventh anniversary At least a further 10% of the area as originally granted, on the tenth

anniversary.

Q What % of mining exploration licence applications have been approved in the last 5 years? 100%?

A. Between 2014 and 2020, all mining licence applications were approved (16 in total).

Three exploration licences were refused over the same period.

Q. Why have an objections process for an exploration licence if licences are always granted anyway?

A. Objections and comments must be considered before a decision is made to grant or refuse a licence, including whether to grant a licence for an area smaller than the application area and whether to impose special conditions on the licence.

Q. Which Act is being referred to?

A. The Mineral Resources (Sustainable Development) Act 1990 .

Q. How many people have attended this session?

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MINERALS EXPLORATION IN NORTH EAST VICTORIACommunity Information Session | Questions and

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A. A total of 70 attendees attended the session, however it is possible that the number of individual attendees is higher where multiple people are viewing the session together but only a single registration is shown.

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THEME 5 – Presentation related questions

Q. Please advise where the presentation slides will be available?

How will we be provided the online link for the presentations?

A. Recordings from the presentations (which include the PowerPoint presentations) can be found on the Earth Resources website. People who registered for the session received an email with a link to the Earth Resources web page.

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