An exploration licence issued under the NSW Mining Act 1992 gives the holder exclusive rights to explore for the minerals specified in the area covered by the licence . If these initial exploratory investigations prove positive, an assessment lease may be issued under the same Act enabling the explorer to evaluate the mineral bearing capacity and extent of the mineral deposits as well as the feasibility of the project on economic, environmental and social impact grounds.
As exploration methods improve, and if commodity prices are buoyant, exploration companies often re-assess areas investigated by earlier explorers in the hope that an economic resource may have been overlooked.
Before a licence or lease is issued, exploration companies must demonstrate their financial and technical resources to carry out the work, pay a security bond for rehabilitation, assign a two-year budget to the project and commit to report annually on progress. They must also reach a land access agreement with the landholder dealing with the conditions on which the explorer is permitted to have access to the land and the compensation payable for the effect of exploration activities. NSWMC, in partnership with NSW Farmers, have developed an example template for a Rural Land Access Agreement.
NSW Minerals Council’s Guidelines for Environmentally Responsible Minerals Exploration in NSW is currently under review and will be released in 2008.
Fact Sheet: Minerals Exploration and Mining Titles. How Do They Affect You?