The Mining Act 1978 and the Mining Regulations 1981 in Western Australia are crucial for economic growth in the mining sector. A key requirement is for mining tenement holders to invest in their properties, ensuring compliance with annual expenditure commitments.
Facing Economic Challenges Together
In tough economic times, meeting expenditure conditions becomes even more vital. Many forfeiture applications stem from claims of underspending. Tenement holders who don’t meet their expenditure commitments and lack a certificate of exemption may face applications for forfeiture, fines, or, in the worst-case scenario, loss of ownership.
Understanding Expenditure in Mining Tenements
While the original act doesn’t precisely define expenditure, Regulation 96C provides clarity by listing specific examples:
- Aboriginal Heritage Surveys (Regulation 96C(1))
- Rehabilitation Activities (Regulation 96C(2))
- Annual Tenement Rent (Regulation 96C(2a))
- Local Government Rates (Regulation 96C(1))
- Administration and Land Access Costs (up to 20% of the minimum expenditure commitment) (Regulation 96C(3))
- Cost of Cutting and Polishing Minerals (Regulation 96C(3a))
- Aerial Survey Costs (Regulation 96C(3b))
The list in Regulation 96C is not exhaustive. Additional recognized expenditures include:
- Drilling Costs
- Metal Detecting, Dollying, Sampling, and GPS Gridding
- Stationery and Office Equipment Costs
- Tools and Equipment for Mining
- Maps and Plan Printing Costs
- Supervisory Work Costs (applied at a reduced rate)
- Purchase Cost of Plant and Equipment (within the relevant expenditure period)
- Machinery Hire Costs (used on the tenement)
- General Evaluation and Assessment Costs by geologists or mining engineers
- Off-groundwork Costs
- Employees’ Wages (for work related to the tenement)
- Expenditure Following Cessation of Mining Operations
Strategic Actions for Tenement Holders
Mining tenement owners should actively work to boost economic activities on their properties to meet expenditure needs. For those unable to meet these limits, applying for exemptions promptly and on legitimate grounds is essential.
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For further insights into managing expenditure commitments, connect with our team. We specialize in supporting geology consulting clients and SMBs in the mining sector, offering tailored data management solutions for geologists, 1point. Our geological data management software is designed to enhance your operations and ensure compliance with regulatory requirements.
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