All tenement requirements from application to expiry are governed by mines department requirements
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Empowering you to take control of your tenure with the tools to make better decisions about expenditure
I recently caught up with Ashok Parekh, chartered accountant, and chairman of Horizon Minerals, to explain Global Tenements development of the Expenditure Strategy Tool.
In light of the industry being beset by plaints, causing huge grief and expensive legal bills, Mining companies must become more committed to exploring their ground – and recording every action and expenditure related to such exploration – to prevent exposure to forfeiture action.
Global Tenements Expenditure Strategy Tool enables clients to better plan their exploration spend through transparent budgeting and easy tracking. Launch date coming soon.
On 1 July 2020, the Mining Regulations 1981 (WA) was amended to enable applications for exemptions from expenditure for COVID-19 related reason to be made for exploration licences and prospecting licences, where justified.
The usual timeframe for lodgement of supporting evidence (statutory declaration) for COVID-19 related exemption applications does not apply. Non-compliance with the new timeframe may result in the commencement of forfeiture proceedings by DMIRS.
The changes also amend the objection period for such exemptions from 35 to 14 days and allow the notice of application for exemption to be published online rather than posting of the notice at the Mining Registrar’s office.
“Both the existing arrangements and the temporary COVID-19 arrangements will operate in parallel from the date the temporary arrangements are brought into effect until 30 June 2021.” (Government of Western Australia, Department of mines industry regulation and safety, applying for an exemption from expenditure conditions, 2020, p3).
Please contact Global Tenements for more information.
We all know someone who has frantically managed expenditure by addressing their under-explored ground at the last minute. Sure, with luck it may work, but isn't it time to retire that system of planning? This is especially important in light of an increasing incidence of forfeiture plaints that has cost some miners dearly.
Here’s how it works: in addition to Departmental monitoring, the Mining Act 1978 (WA) establishes an industry self-regulation mechanism that enables anyone to apply to the Warden’s Court of Western Australia for the forfeiture of a mineral title on the grounds that the titleholder has not complied with the Act. After hearing the complaints, the Mining Warden makes recommendations to the Minister who may impose penalties or declare the title to be forfeited.
If the forfeiture is granted, the plaintiff has first option to apply for the tenement and, if this is granted, then has the opportunity to work the ground. There is now growing concern that this action is being used by serial plaintiffs to extort so-called “go away payments” from tenement holders.
For example, Focus Minerals recently settled 102 applications for forfeiture against the company’s tenements. The settlement deed required Focus to make a $400,000 cash payment to the applicants and transfer 13 of its tenements to the applicants.