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Improved Mining Exploration Regulations for NSW
10 July 2015
The NSW Government has radically overhauled its process of NSW exploration regulation, with tough new streamlined rules across all types of exploration activities.
The reforms dramatically reduce regulatory duplication, with 69 petroleum conditions, 54 coal conditions and 35 minerals conditions cut to some 13 standard conditions for all resources.
Background
The exploration regulation regime in NSW has been criticised for being overly burdensome and difficult to comply with. As part of a commitment by the NSW Government to reduce the level of red tape for exploration activities in the State, the regulatory regime has been reviewed and overhauled in the Improved Mining Exploration Regulations (IMER).
The reforms promote stronger accountability for industry, as well as the use of innovation and best practice to meet risk-based requirements. Most importantly, they offer the public greater clarity and confidence in the regulation of the sector.
The adoption of a risk-based regulatory framework is part of the NSW Government's Quality Regulatory Services initiative and brings NSW into line with governments in other states and overseas that have shifted to risk-based frameworks, particularly in the areas of exploration, mining and environmental protection. The reforms will be phased in from 1 July 2015.
Key components
Key components of the reforms include:
- All title rights and obligations have been integrated into one simple and clear document.
- Removal of three-year administrative limits on licence terms for mineral explorers allowing explorers to seek a title for the full statutory five years.
- 158 conditions across petroleum, coal and minerals will be replaced by some 13 new conditions. These will apply to all activities undertaken under a licence and at all times (there are no dormant conditions). The number of conditions will be further reduced once legislative changes are made by Parliament later in 2015.
- Work programs now cover not only pure exploration activities (i.e. prospecting operations), but also environmental management, rehabilitation and community consultation. This better reflects the expected financial and technical competencies needed for exploration. Also, work programs for mineral and coal are currently only used for assessing whether an exploratory title should be granted or renewed. Standard conditions will now require compliance with the work program during the term of a licence and set a minimum standard of performance under an exploratory licence, but not a cap.
- New Codes of Practice will support the regulation of specific activities and will impose enforceable mandatory requirements. Where there is a higher risk, prescriptive regulation will be applied.
- In order to minimise disparate reporting periods over a year, explorers can now submit all reports at the same time, including the summary activity, exploration, environment management, rehabilitation, and community consultation reports.
Later in 2015, the following will be introduced:
- Streamlined assessment of exploration applications for common exploration activities that are unlikely to have a significant impact on the environment, meet specific location requirements and satisfy stringent impact thresholds and criteria.
- Intensive mineral and coal exploration activities, as well as petroleum exploration activities, will be analysed and assessed in greater detail and exploration applications for these activities must be accompanied by thorough environmental impact assessment information.
Benefits
Benefits include the following:
For Industry:
- IMER will boost the NSW exploration and mining sector with significant time and cost savings resulting from more predictable regulation, more consistent application of regulation and the elimination of duplication and overlap with existing regulatory requirements.
- In addition, the less complicated, risk-based regulatory system offers greater opportunities for explorers to innovate and adopt best practice to meet requirements.
- Benefits will also result from full statutory licence terms for minerals titles and more streamlined activity approvals.
For the Community:
- Under the existing system, the public was not always aware of the conditions imposed on explorers as part of title applications or activity approvals.
- Under IMER, the minimum standards in the codes are known at the outset and the requirements are less complex and in plain English. This provides the community with improved clarity of what is expected of industry as part of the exploration process.
The reforms also serve to boost community confidence in exploration.
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Contacts: David Walker, Principal and Stuart Mengler, Principal