Chapter 11

Tasmania is highly mineralised and has a rich mining history. But that history has come at a high price - the industry has left in its wake a legacy of serious pollution and degraded landscapes, most notoriously evidenced by the Queenstown hills and the heavily polluted Queen and King Rivers.

This chapter discusses the laws that regulate:

• mineral exploration

• mining

• quarrying

These three activities can have major impacts on the natural environment,
on private landowners and on local residents.

They are different types of activities and therefore each has its own set
of management and environmental controls.

The Mineral Resources Development Act (download it) creates various leases and licences allowing people to prospect for and mine minerals. The Act is administered by Mineral Resources Tasmania (part of DIER).

Mineral Resources Tasmania also administers the Petroleum (Submerged Lands) Act (download it). Titles granted by the Minister under this Act include: exploration permits, retention leases, production licences and pipeline licences.

Most leases and licences (other than prospecting licences) under the Mineral Resources Development Act are not regulated under the resource management and planning system, explained in Chapters 4 and 5. However, mining activities are subject to ‘environmental harm’ controls (pollution, soil erosion etc) discussed in Chapter 6.

Environmental regulation and enforcement comes under the:

• Land Use Planning and Approvals Act and
  
• Environmental Management and Pollution Control Act

Local councils generally regulate smaller ('Level 1’) operations unless substantial environmental harm is likely to be caused.

Otherwise, the Environment Division undertakes environmental regulation.

The Crown owns oil, gold and silver on all public and private land. Ownership of other minerals depends on the date and type of land title that attaches to the property.

Rock, stone, sand , gravel and clay used for construction and bricks are owned by the landowner of the property where they are found.

A person who wishes to ‘fossick’ (hand tools) needs only a prospectors’ licence. This licence does not allow the holder to prospect on private land, unless the landowner gives permission.

A person or company that wishes to use more comprehensive methods of exploration must obtain an exploration licence. This enables the holder to search for up to five years within a defined area specified by the licence. The licence area can include private land. In addition, mineral exploration cannot be limited by reference to local government ‘planning schemes’ (see section 20(7) of LUPAA)

It is difficult for a landowner to prevent an exploration licence being issued over his/her land. However, he/she may be able to influence the conditions that apply to the licence.

Any person who owns, or has an interest in, any affected land is able to lodge an objection within 28 days of the licence application being advertised in a local newspaper. Objections are heard by a Mining Tribunal.

The holder of an exploration licence is generally not required to obtain a planning or environment permit.

This does not mean that mineral exploration is unregulated. The environment can be protected via the following mechanisms:

• Exploration activities are approved under the Mineral Resources Development Act 1995.

• Much exploration activity is done with minimal ground disturbance, such as geophysical surveys, rock and soil sampling. Once an exploration target has been defined, drilling may be required. Particular methods of exploration that are known or likely to cause environmental harm may require the licence holder to apply for a permit from local government or state authorities.

• The explorer must obtain written permission from Mineral Resources Tasmania prior to undertaking any on ground exploration. Mineral Resources Tasmania liaises extensively with land managers such as Forestry Tasmania and the Parks and Wildlife Service. Prior to approving a program, any potential for the work to affect threatened species, conservation and heritage values is considered and where necessary the program is modified or conditions placed on the work so that these values are not compromised.

• All exploration work must be carried out in accordance with the Mineral Exploration Code of Practice. The code comprehensively describes what a licence holder can and cannot do.

• Adherence to the code is a licence condition and a breach may result in the loss of the licence.

• If it appears that the Code has been breached complaints may be made to Mineral Resources Tasmania or the Environment Division.

• If the Code is breached, or if environmental harm occurs or is likely, an Environment Protection Notice may be served on the operation (☞ Go to Chapter 6 for details).

• A 'rehabilitation bond' must be lodged before a licence is granted. The bond can be compulsorily used to rehabilitate exploration works if the company responsible for those works fails to do the required rehabilitation.

• The Minister for Economic Development and Resources is responsible for granting a mining lease. The lease enables the holder to extract defined materials.

• A mining lease is rarely granted for more than 21 years. Most leases are issued for a 5-10 year term.

• The lease area should be limited to the minimum land area required for the efficient operation of the proposed mining operation, including supporting infrastructure such as tailings dams. The area is likely to include ‘measured’ and ‘inferred’ mineral resources.

• A mining lease gives the holder the right to carry out mining operations (access, excavation and treatment) within the confines of the mining lease, subject to conditions set out in the lease.

• A mining lease may be granted only if the proponent: demonstrates the existence of an economic mineral resource, intends to mine, has sufficient financial and technical resources for the operation, has assessed the potential environmental impact, has a compensation agreement with the landowner and has provided a rehabilitation bond.

• Mining is prohibited within national parks, but can take place in reserves classified as Regional Reserves under the Nature Conservation Act (☞ Go to Chapter 7)

• For small operations (annually less than 1,000 tonnes of mineral or 5,000 m3 for sand or stone) the operation is classified as a 'Level 1' operation and environmental approval is managed by the local council.

• Larger scale (‘Level 2’) operations are approved and regulated by state agencies (☞ Go to Chapter 5 for information about development controls). The developer must prepare an Environmental Effects Report or a Development Proposal and Environmental Management Plan outlining the manner in which the operator will meet environmental standards.

Mining is the only industry where a private company can develop someone else's land without their consent.

However, a mining lease can only be granted when the applicant has entered into a compensation agreement with the landholder. This takes the form of a common law contract. Landowners have recourse to the Mining Tribunal to settle any dispute relating to the compensation agreement.

The holder of an exploration lease or mining lease is prohibited from conducting any work within 100 metres of any substantial building or water body without the consent of the owner. The owner must also be consulted prior to roading and construction activities taking place. Landowners have recourse to the Mining Tribunal. Prior to any hearing before the Tribunal the Director of Mines must attempt to resolve the dispute.

Warning note: Landholders cannot revoke their consent once it has been given in writing.

In past decades many mine sites in Tasmania have been abandoned without rehabilitation of the area taking place. Mineral Resources Tasmania currently manages the Rehabilitation of Mining Lands Trust Fund, which provides funds to rehabilitate Crown lands affected by former mining and exploration activities.

Before any work can commence in the lease area, operators must now provide a rehabilitation bond. This is a back-stop measure, to cover for the event where operators fail to comply with environmental and rehabilitation requirements.

Mining lease applications are not generally advertised, though landowners will be notified.

Only those who can claim a right to, or interest in, all or part of the land comprised in any application for a lease are able to object to the granting of a mining lease. Objections to the Registrar of Mines must be made within 28 days of marking out the mining lease area. Objections are heard before the Mining Tribunal.

Generally if an operation was lawful (i.e. council approval had been obtained) prior to the inception of the Resource Management and Planning System, then such uses are regarded as lawful under the planning system and no further permits are required.

Quarrying involves the extraction of construction materials - such as rock, sand, and gravel, providing materials for road construction, concrete etc. for community use. There are many dozens of small quarrying operations around the state. Quarries that are close to settlements can create significant 'nuisance' problems in local neighbourhoods.

Soil is not a mineral under the Mineral Resources Development Act and falls outside this legislation. However, Planning Schemes frequently provide for soil extraction as a 'use or development' that needs a permit.

• Most quarries are 'Level 1' activities that require only local government approval (annually less than 1,000 tonnes of mineral or 5,000 m3 for sand or stone). This is to ensure that the operation complies with the planning scheme for the locality. The land may need to be rezoned to accommodate a new quarry.

• ‘Level 2’ operations require environmental approval under the Environmental Management & Pollution Control Act
  (☞ see approvals for Mining above).

• As with mines, operators of quarries must hold a mining lease through Mineral Resources Tasmania, to extract stone or other materials from either Crown land or private land. However, a mining lease is not required for quarries on private land where the sand, gravel or stone extracted is used by the landowner or sold at a rate of less than 100 tonnes each year.

• The Quarry Code of Practice comprehensively describes how an operator should conduct operations – it defines good quarrying practice and provides the assessment standard for quarrying operations and applications. The operator’s permit conditions are often taken from the code.

It is important to note that local councils operate many quarries for public purposes, and councils themselves are required to comply with mining, planning and environmental legislation. Because councils are also the managing authorities for their own quarries it can sometimes be more difficult to ensure that they comply with proper processes.

• the Mineral Exploration Code of Practice (a booklet), or download

• the Quarry Code of Practice (a booklet), or download

• the exploration licence or mining lease for the particular operation

• any environmental permits issued by the council and/or the Environment Division
  

• immediately contact the mine or quarry operator and request them to remedy the situation

• report it to the local council and/or the state pollution hotline (Ph: 1800 005 171)

• write or phone the Minister for Mines with your complaint.
  ☞ Go to Chapter 13 for general information about taking action.

• you may be able to take court action to prevent breaches of a lease or permit.
  (☞ Go to Chapter 6)

• If you have a concern you should request details of the lease or permit.
  If you are prevented from seeing documentation, maps etc, you should make an application for 'assessed disclosure' under the Right to Information Act 2009, arguing that it is in the public interest to make it available.
  

• Hard copies of the Mineral Exploration Code of Practice and Quarry Code of Practice can be obtained from Mineral Resources Tasmania or through Service Tasmania. See Mineral Resources Tasmania for more information resources.

• TIGER (Tasmanian Information on Geoscience and Exploration Resources) is an information base for Tasmania's geological and mineral exploration. It includes maps and information on geology, groundwater, tenements and deposits.

• The Environment Division produces a range of brochures that describe Tasmania's environmental control system – available from Service Tasmania centres or at www.environment.tas.gov.au.

• Service Tasmania Centres: website
  Ph: 1300 135 513

• Mineral Resources Tasmania: website (Dept Infrastructure Energy and Resources):
  30 Gordons Hill Road, Rosny Park PO Box 56, Rosny Park 7018.
  Ph: 6233 8377 Fax: 6233 8338
  Email: info@mrt.tas.gov.au
  Environmental Management Section: Ph: 6233 8326 Fax: 6233 8338
  

• Environment Division: website
  134 Macquarie, Hobart
  GPO Box 44A Hobart 7001 Ph: 6233 8011
  1 Civic Square Launceston 7250 Ph: 6336 2236

• Minister Responsible for Mines: c/o Parliament House, Hobart Ph: 6233 2200

• Tasmanian Conservation Trust: website
  191 Liverpool Street, Hobart 7000. Ph: 6234 3552 Fax: 6231 2491
  Email: tct6@bigpond.com.au

• Mineral Resources Development Act 1995
• Mineral Resources Regulations 1996
• Petroleum (Submerged Lands) Act 1992
• Petroleum (Submerged Lands) (Management of Environment) Regulations 2002
• Petroleum (Submerged Lands) (Pipelines) Regulations 2002
• Land Use Planning and Approvals Act 1993
• Environmental Management and Pollution Control Act 1994

You can download the above Acts from: Tas Government or from the Law Institute

Logged in as: Chris Harries mineral_exploration.txt · Last modified: 2007/09/02 14:33 by tastiger