2) Moratorium periods

Application for an exploration or mining holding may not be possible until the moratorium period has lapsed. It is important to know, exactly, the first day on which application may be made to minimise competition from other companies. The duration of a moratorium period will vary in each jurisdiction.

3) Lodgement of an appropriate work program

A work program, or similar, is usually an essential component of an application or renewal.

Requirements for a work program can be found on the application form and in the applicable legislation and regulations.

The work program must satisfy at least basic legislative and departmental requirements, otherwise the application will not proceed. Where there are competing applications, the work program will often be a determining factor in deciding which company should get the ground.

4) Completion of the prescribed form

The correct form must be used when requesting a particular action. Requirements set out in the form must be fulfilled and the form must be signed by an appropriate person.

5) Actions to be taken immediately after application

Failing to attend to the following may impede progress of an application:

• the application may need to be advertised, by way of a notice in newspaper, within a certain period after lodgement;
• land owners (including government where it owns or controls land) may need to be notified using a specific form and delivery method. Land owner notices may need to be renewed periodically;
• a warden's hearing may be scheduled within a set time frame after application. Attendance by the applicant may be mandatory;
• compensation may have to be settled with the landowner before an application can be granted.

6) Environmental issues

Environmental conditions may attach to the grant of an exploration or mining holding. These conditions will vary depending on the location of the holding and the sensitivity of the area under title and that surrounding it. It is important that all project personnel are made aware of such conditions.

7) Expenditure and/or Labour Covenants

Expenditure on a mineral holding may be set by a company or prescribed by the regulators. If expenditure is deemed unsatisfactory then reasons may be sought by the relevant authority.

Exemptions on expenditure may be allowed in certain jurisdictions. Application for exemptions must be made within a specified time frame.

Labour covenants, or conditions, may also to the grant of an exploration or mining holding. Failure to satisfy expenditure and labour covenants could affect the standing of the holding.

8) Part Surrender of Area held

There may be statutory requirements to part surrender or part relinquish area held under title from time to time. The amount of ground to be surrendered will vary from jurisdiction to jurisdiction. If area is not surrendered at the rate or time specified then an explanation may be sought.

9) Transfer or Assignment

Transfer or assignment of an exploration or mining holding may have to progress through a number of stages. Examples of possible stages follow:

• an instrument of transfer signed by all parties to the transfer may be required;
• the instrument may have to be assessed for government duties before the transfer can proceed formally;
• approval for the transfer may be required; and
• registration of the transfer.

Rights and obligation attaching to the exploration or mining holding remain with the transferee until final registration of the transfer.

10) Encumbrances

Prior to transfer or taking any other action against an exploration or mining holding, it is important to check that there are no caveats, mortgages or sub-leases which may impede or stop the progress of the dealing.

11) Lodge the Appropriate Fee

If an application or renewal application is lodged either without the appropriate fee attached then the application may be rejected outright. Fees change over time and different rates apply in each jurisdiction. There will generally be a fee payable for any action to be undertaken by an administering authority.

12) Marking out Requirements for Different Types of Holdings

The correct mark-out procedures must be used when applying for a particular type of exploration or mining holding. An area applied for as an exploration or mining holding may need to be described using any one of:

• a graticular system;
• latitude and longitude; or
• a local map grid.

A mining holding may require a survey to be carried out by a registered surveyor.

13) Critical Dates

Most mineral holdings can be renewed. The date a renewal application falls due will vary according to the type of holding and the jurisdiction. Failure to lodge a renewal application before the expiry date will, in the vast majority of cases, result in loss of title.

Annual rent may also be payable at the same time. Penalties may be imposed for late payment of rent. The same applies to Royalty payments which generally only apply to production titles such as those used for mining, but may apply to exploration holdings depending on the methods used to explore, for instance the taking of a bulk sample.

14) Reporting Requirements

Requirements for reporting depend on the type of holding and legal jurisdiction in which operations are being undertaken. The frequency, method and timing for lodgement are issues to consider.

Important Notice

The information contained in these "hints" is for guidance only. Reference should, in all cases, be made to the relevant legislative provisions.