Exploration companies in Western Australia will reportedly have more clarity around mining tenure and the status of granted leases should a draft amendment to the Mining Act 1978 (WA) be passed through the state government.
The Cook Government has approved draft mining amendment legislation it says will address procedural matters in the Mining Act to prevent future scenarios such as the 2017 Forrest & Forrest v Wilson case that played out in the High Court.
On 17 August 2017, the Forrest & Forrest versus Wilson case in the High Court cast doubt on the validity of certain Western Australian mining leases.
The central issue was whether the failure to lodge a mineralisation report, at the time of the application for a mining lease under the Mining Act 1978, deprived the Mining Warden of jurisdiction to make a recommendation to the Minister for Mines in relation to the grant of the mining lease.
It was submitted by Forrest & Forrest that, if such jurisdiction was lacking, any mining lease subsequently granted would be invalid.
The Mining Warden recommended the mining lease applications be granted, despite the fact the mineralisation reports were late in being lodged. Forrest & Forrest subsequently lodged objections to the grant of the mining leases.
Ultimately, the High Court overturned the decision of the WA Court of Appeal, which had held that an application for a mining lease under the Mining Act was valid despite initial non-compliance which was rectified prior to the Warden making their recommendation.
As a result of this High Court decision, the Western Australian Government is introducing changes to the legislation that will include amendments to address common pitfalls in the tenement application process such as the statements required to accompany an exploration licence application.
Amendments will also address the Blue Ribbon v Roy Hill Infrastructure decision in 2022, which found the Mines and Petroleum Minister does not have power to excise areas from the grant of an application for a exploration licence.
Mines and Petroleum Minister David Michael says splitting the legislation in half will accelerate the legislative process and deliver “greater” certainty to the sector.
“The Cook Government understands the importance of Western Australia’s mining sector to the state and national economies, much of which is underpinned by security of tenure,” he says.
“We will continue to work with the Australian Government to deliver mutually beneficial outcomes for all stakeholders, including Traditional Owners.”
Concurrently, the government will be addressing procedural matters in the Mining Act to prevent future scenarios, similarly to those arising from the High Court’s decision.
The Chamber of Minerals and Energy of Western Australia (CMEWA) says starting to draft procedural amendments to the Mining Act will help alleviate uncertainty over mining tenure and other associated issues.
CMEWA Chief Executive Rebecca Tomkinson says it makes sense to review supporting guidelines to ensure contemporary technologies and the expectations of community, business, and industry are taken into account.
“Any amendments to the 46-year-old legislation that can simplify and clarify the requirements of the tenement application process is positive for all stakeholders,” Tomkinson says.
Meanwhile, the Association of Mining and Exploration Companies (AMEC) has been advocating for security of mining tenure and for changes to be made during the tenement application process.
Chief Executive Warren Pearce says this is a sign that the government recognises the “importance” and contribution of explorers and miners, alongside the role it plays on a state and national level.
“To see this draft amendment legislation is a win for industry and will ensure mineral explorers and miners can get on with what they know best,” he says.
“We know that security of title is paramount to Western Australia’s investment attractiveness. You can’t expect people to invest in WA if they don’t have secure title.”
Write to Aaliyah Rogan at Mining.com.au
Images: iStock
