Mining and Energy Law

1.Some important provisions of The Mining Act, 1978

Australian mining law has been established with a view point that it can govern the extraction and exploration of different and varied types of natural resources etc. it can also be noted that there are  different laws that has been framed in respect of energy and mining laws, that effect the working and operation of the companies involved in the busies of mining the natural resources (BjeliÄ"¡ and et. al.,  2013). In reference with the  situation and location of minerals which are situated in the boundaries of state , the respective state has the power to legislate for minerals (Kümmel, 2011). It can be noted that each and every state has formed its individual statute law which regulates the extraction and exploration or production of minerals and core materials. It can be further noted that there is a maxim which says that “To whomsoever the soil belongs , he owns also to the sky and to the depths”, it means that there that it has  been assumed that   a owner of land which has all the rights reserved on that particular land is also a possessor of all the minerals and natural resources that are been presented under or on earth. It has an exception that can be named as Royal metals. However, It can  also be said that now, the concept of owner of land possessing the natural materials, has been vanished and abolished. It is not in force in today 's law. In this regard , the general rule relating to this concept has been introduced which says that all materials and minerals are governed and owned by Crown.

Mining act 1978 has been governed under the portfolio of Minister for mines and petroleum. It has been governed under the Department of mines and petroleum. Al;so, this law demonstrates an effective learning and knowledge in respect of mining and other aspects (Georgescu-Roegen,  2014) . It can also be noted that it also resolves the issues and conflicts which arise in  the field of mining, energy and other natural aspects. Also, in Australia, there are various centres which are established in the sense so that they can assist the researchers in their respective research in field of mining, energy and natural resources. It can also be stated that there are many provisions which are related to the mining act which affects the surveys. In accordance with the section 9(B), it can be evaluated that for an intention in this act, it is rendered necessary that a position in relation should be determined so that operations can be run effectively. Also, there were some mining regulations which are  effected by the said act. Although, in aspect of the previously registered legal regulations, it can be stated that parliamentary regulations has replaced by parliamentary legislations.

In order to proceed further,it can be evaluated that there are various forms of agreements which are known as ratified agreements. In order to conduct the operations of large mining operations these are regulated with the help of ratified agreements.  This is an agreement in which the state contracts with the owner of the land or miner through a written agreement, which has been ratified by statute and also by the state and parliament of territory (Ma and et. al.,  2010). These ratifications ensures that the provisions  of the said contract are laid down under the general mining legislation. In this case it has also been defined as the source which overrides any inconsistent provisions under the general mining territories. In Australia, ratified agreements are utilised for the establishment of large and export oriented agreements and mining projects since many years ago.

Also, Energy law has been framed in respect to give effect and govern the utilisation and taxation of energy , which can in the form of renewable and non renewable sources. The Energy law is the main and original authority which is related to energy. Energy law consider the lawful provisions for oil , gasoline and extraction taxes. Australian Petroleum Production and Exploration Association is a statutory body which  is considered to be a representative of  98% of oil and gas producers.

In accordance with the provisions of the mining law, it can be analysed that  a “crown land” is the concept in which It refers to all land except:

• A land which has been kept reserved in aspect of any purpose related to any public intention which does not include the real property engaged for mining and other related activities (Leshy,  2014).
• A land which has been legally allotted or contract has been framed to give this  a legal effect and on the behalf of the crown.
• Land which has been considered as the town site within the meaning of provisions laid down under the act namely Land Administration Act, 1997.

on the other hand, mining tenements is a concept which refers to a prospecting license license relating to exploration, retention license lease related to mining ;ease and lease related to general and miscellaneous purpose which has been granted or acquired under this said act (Dalitz, Toner and Turpin, 2011).

In the provisions of the Mining Act, 1978, it has been laid down that Gold, silver and other property and other precious metals and materials are considered as the part and property of “Crown”. It can be demonstrate as under;

(1)a) It conveys that all the precious materials like gold, silver and another precious material which exist in its natural and inherent status under or on the land which has been estranged or not alienated from Crown (Dalitz, Toner and Turpin,  2011)Baginski, W., 2011). Along with this, at anytime the alienated products have been disoriented, will be considered as the part of the property of Crown.

b) It can also be stated tat all the precious items and materials which includes gold and silver, if exist in their natural condition at or under the surface of earth and not anomic from Crown before the date January 1, 1899 are treated as the property owned by Crown.

(2) Irrespective of any provision laid in this act, or any other previous statement, the owner, lessee or licensee of or any other person eligible to, for any land or real property on which the provisos of the said section are applicable and also, which is not related to the mining tenement, entitled to exercise any minerals and materials that exist in a earthy state at or below the surface area of land for any of the purpose namely agriculture , pastoral , household, road making or building of a property on that particular land (Brown and et. al.,  2012).

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Also, the tenement can be considered as the delegation contract. In this particular section of the act, it can be said that minister, or any other designated official of department is needed and licensed to render information or any other document containing any other notice to the person or owner who holds and also have applied for the mining tenement. It can also be said that it is prescribed under this act. Also, there are some situations in which the land is exempt in various situations. The minister or any other regulatory authority from time to time, can exempt:

Exempt any land which is not a private land or any other land which is related to mining tenement or an application from :

• mining.
• A particular intention of mining.
• This act.
• Or any other specified provisions of the said act.

In accordance with the provisions of the said act, it has been laid down that there are various situations in which the mining can be applied for in the place of public reserves and commonwealth land (Nand and Pring, 2012). These are various provisions under this section that are as follows:

Up to the extent of this act, a mining tenement can be applicable for for the land or a particular specified class of land on which the sections of 24, 24A or 25 is applicable. It also include commonwealth land.

It is also laid down in the subsection that, the owner or minor should not practice any kind of mining activities on the specified land under above subsection with out prior approval or consent obtained in connection of that land under section 24, 24A, 25 or 25A.

In addition to this, the agreement or mining tenement which has been held in respect of the land specified above can be forfeited in following  situations:

• Infringe the provisions and aspects laid down under this act.
• Breaches any terms and conditions fr which consent has been given under section 24, 24A, 25, 25A (Solangi and et. al.,  2011).

Also, there is a section under this act which lays down about the marking out of mining tenement. It conveys:

Before applying for the mining tenement other than license related to exploration or miscellaneous or retention license , the land for which the tenement for mining has been asked for shall be marked in a specified appropriate manner , way or shape and for application  for any kind of damages and other loss which has been occurred or likely to arise under section 123. It consist of the activities relating to the prospecting and as such to represent mining activities (Chen and et. al.,  2011).

Also, if there are two and more minors who apply for the mining tenement for mining in same land or a part there of, then that  applicant is considered, who firstly complies with all the essential requirements of the provisions said under this act at  a starting level. To that person, the right of priority has been allotted in respect of land under this act (GAO and ZHANG,  2010). In this context, the term applicant means those persons who are desirous to get an exploration, prospecting and mining lease or genera lease.

There can also be a case when more than two applicants have complied with the provisions and with other relevant aspects, then ballot will be allotted to them and those parties are notified to the willing applicants. Also, these ballots are been allotted in the public.

Now, in the given scenario, where Medusa resources wants to develop a project which has been established at 900 km east of Perth, western Australia. The said company wants to start with the construction under adherence with the provisions of the said act. The company is expecting to extract 385,000 ounces of silver during their  life time of mine. Also, the general counsel is of opinion that they will also need  25,000 tonnes of crushed limestones for building several roads to reach the site of project. Also, in the given case it has been given that there is a Reprobate Mining is an another applicant for an exploration license in the area of tenement. The latter company claims that the Medusa Resources has not been complied with all the provisions laid down in the Mining Act, 1978. They believe that the Medusa  resources is not liable to gain a tenement or exploration license as it's two corner posts are missing. Also, the main problem is related to not knowing the quality , extent or location of the land. A written letter giving advise in respect of this has been provided in relation to resolving the issues and problems that has bee arise in accordance with the provisions under the act.

Now, in the given scenario, where Medusa resources wants to develop a project which has been established at 900 km east of Perth, western Australia. The said company wants to start with the construction under adherence with the provisions of the said act. The company is expecting to extract 385,000 ounces of silver during their  life time of mine. Also, the general counsel is of opinion that they will also need  25,000 tonnes of crushed limestones for building several roads to reach the site of project. Also, in the given case it has been given that there is a Reprobate Mining is an another applicant for an exploration license in the area of tenement. The latter company claims that the Medusa Resources has not been complied with all the provisions laid down in the Mining Act, 1978. They believe that the Medusa  resources is not liable to gain a tenement or exploration license as it's two corner posts are missing. Also, the main problem is related to not knowing the quality , extent or location of the land. A written letter giving advise in respect of this has been provided in relation to resolving the issues and problems that has bee arise in accordance with the provisions under the act.

Formal letter to advise

To,
Clyde Ralmer,
Medusa Resources pvt  Ltd.

(Subject): Proposed development of Cipac Project

With reference to the provisions of the Mining Act, it has been said that the company is termed as miner who has the right to explore  and extract resources under and at the surface area of  a particular piece of land.  Mining act has been considered as the regulation body which has been  framed with a aim to settle the rules and regulations relating to mining the activities. It can be further noticed that the company is focusing on to explore and develop its project namely Cipac project. Also, the said company has an objective of extracting the 385,000 ounces of silver over the entire life cycle of the said organization.  In accordance with the provisions of the said act, the land on which the company is desirous of starting the project is not a crown land. As per the provisions of the Mining Act, it has been defined that the land which has been used as the benefit or advantage of Aboriginal inhabitants. So in this case the company has been acquired a land which is utilised fr the benefits of the Aboriginal inhabitants. Further more, the mining tenement is a term which implies to grant a exploration license, retention and prospecting license to the person who is desirous of practising a land and extracting the mining materials. Also, in addition to this, in accordance of the opinion of the general counsel it has arise that there is another company which is also interested to acquire the land. The company is named as Reprobate mining company. In this case the latter company is claiming that the company namely Medusa resources is not in the position to acquire the the exploration license as it has not complied with all the required  provisions of the said act. In accordance with this this act, it has been said that if there are two applicants for acquiring the license of land then the applicant who has complied and adhere with the provisions in the prescribed manner and in an appropriative manner , that applicant will be liable to get the the license. Also, it is also required by the willing acquire to mark out the mining tenements. It is specified under the act. Also, the main issue was that about the selection of the mining tenements that Medusa resources is required to comply with. In this aspect, the Medusa resources is required to acquire the exploration license in the respect of the mining tenements. Exploration license is one of the type of mining tenements. It can be further understood that for getting allotment of the exploration license in compliance with the said provision of the Mining Act, the company  is required to file an application to Minster who has an authority to grant a license. In this case the minister on the recommendations of the registrar or warden in pertaining of the section 59 of said act, grant the license in accordance with the terms and conditions of the said act and also in accordance with terms and provisions as may be determined by minister. So, the cited company need to file an application to  ministry to obtain the exploration license to fulfil the objectives of the company that is to expand its project of construction.

Also, in the view point of the section under the Mining act, it has been laid down that there are various aspects in accordance with the license may be granted. The bloc or blocks which has been built on land should not be more than 70 blocks. Also, there is a specified process in which the company can obtain the exploration license. In accordance with the viewpoint the company can attain  the license through a following process:

1) Application for license  must be comprises of all details which should be situated at a graticular system management.  
2) Then, the minister arranges the priority of applications.
3) In the next step the applicants are up dated according to the priority of their applications.
4) Within 14 days of filing of application to obtain the exploration license, the cited company is required to publish an advertisement in a local newspaper of regional language and also in a state language newspaper.
5) Moreover, the objections are entitled to be lodged in the time duration within 21 days of advertisement published in newspaper.
6) In next step, the companies who are in the lower priorities are held as pending up to the date till it become the priority application.
7) In the next step of the process it can be evaluated that the ministry assess the applications and then decide whether it should be granted or not.
8)after this, the license has been granted and the applicant has been updated of it.
9) In case, the license has not been granted to a person, then it should also communicated to the person.

By going through this procedure, Medusa resources can attain the grant of license by a regulating authority.

Also, for applying a license it can be concluded that following should be taken into consideration for applying to obtain a exploration license. The cited company is required to provide the details. These can be termed as under:

• A map of scale 1:100,000 or higher than this which is bale to show thae boundaries of an area for which application has been sought.
• The minerals which has to be extracted.
• Also, details of the program which includes :
• The work program which has been proposed.
• The location and aim of the activities that has been proposed.
• Time schedule of accomplishment of the exploration programs.
• To provide the evidence regarding the financial capacity for estimation of the overall funds required.
• Also, the applicant has to assure the registry that the company is not an insolvent and sound organization.

CONCLUSION

From the above report it has been comprehended that the the mining act is framed in the respect of ensuring all the aspects of mining and extracting the resources and materials. In this present report it can be concluded that the company should obtain various types of mining tenements which can be obtained by going through a several process.  In this assignment, mentioned that the company namely Medusa resources is required to comply with all the requirements of the said act. Also, it can be laid down that there are various aspects of the said act which should be required to be in there in the operations so that the company can not be penalised. In this report various aspects of mining and energy law has also been discussed. Also, it can also be conveyed that business organizations should adhere to all the regulations.

You can alos read: Unit 14 Business Law London School of Science and Technology

REFERENCES

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• Kümmel, R., 2011. The second law of economics: energy, entropy, and the origins of wealth. Springer Science & Business Media.

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