MINERAL RESOURCES ACT 1989 - SECT 190 Provision of security

MINERAL RESOURCES ACT 1989 - SECT 190

190 Provision of security

(1) Before a mineral development licence is granted or renewed or a condition of the licence is varied or approval is given to add stated minerals to the licence, the Minister, taking into consideration the matters outlined in section 183 (1) (m) (i) and (ii) , shall determine the amount of security to be deposited by the holder of that licence as reasonable security for—

(a) compliance with the conditions of the licence; and

(b) compliance with the provisions of this Act; and

(c) rectification of any actual damage that may be caused by any person whilst purporting to act under the authority of the mineral development licence to pre-existing improvements for the licence; and

(d) amounts (other than penalties) payable to the State under this Act.

(2) A mineral development licence must not be granted or renewed, a condition of a mineral development licence must not be varied, and an approval must not be given to add stated minerals to a mineral development licence, until the applicant for the grant, renewal, variation or approval deposits the security decided under this section.

(3) The Minister, if satisfied that any condition of the mineral development licence or any provision of this Act has not been complied with or that damage referred to in subsection (1) (c) has been caused by any person purporting to act under the authority of a mineral development licence or who enters land upon the instruction of the holder, the Minister may require that person to take all action necessary to rectify that noncompliance or damage and, save where the person was not the holder and was not upon the land with the holder’s approval at the time the damage was caused, may utilise for that purpose the whole or part of the amount of the security deposited in respect of that mineral development licence.

(4) If, at any time (whether during or within 20 business days after the expiration of the term of a mineral development licence) the amount or any part of the amount deposited under this section is utilised as provided by subsection (3) or the Minister considers that, in view of the damage caused or likely to be caused by any person purporting to act under the authority of the mineral development licence or upon the instruction of the holder or for any other reason, a further amount of security should be deposited in respect of that mineral development licence, the Minister shall require the holder or former holder of the mineral development licence, within the time specified by the Minister, to deposit the further security.

(5) The Minister may accept a bond or a guarantee or indemnity by, or other financial arrangement with, a financial institution, insurance company or another credit provider approved by the Minister or other form of security acceptable to the Minister as the whole or part of the security to be deposited under this section.

(6) It shall be a condition of a mineral development licence that the holder shall deposit security or further security from time to time in accordance with a requirement made as provided by this section.

(7) Within 20 business days after termination of a mineral development licence, the person who was the holder shall notify all owners of land in the area of the mineral development licence that any claims for rectification of actual damage to land caused under the authority or purported authority of the mineral development licence must be lodged within 6 months of termination with the chief executive.

(8) Where a mineral development licence has expired or been terminated, the Minister—

(a) in a case where every owner of land in the area of the mineral development licence certifies that there is no actual damage to land that should be rectified—at any time; or

(b) in any other case—not earlier than 6 months after the expiration or the termination;

shall, subject to subsection (9) , refund to the holder of the licence (or as the holder in writing directs) any security deposited and not utilised as provided by subsection (4) less any amount determined by the Minister to be retained towards—

(c) rectification of any matters caused by the noncompliance with any of the conditions of the mineral development licence or with any order or direction made or given by the Minister under this Act and directed to the holder; and

(d) amounts (other than penalties) the holder owes to the State under this Act (whether the amounts became owing before or after the termination).

(9) If the Minister accepts a bond, guarantee or indemnity by, or another financial arrangement with, a financial institution, insurance company or another credit provider as security under this section, any amount payable to the holder under subsection (8) must be refunded to the financial institution, insurance company or credit provider and not to the holder of the mineral development licence to which the security relates.