Major push from the Department of Mines for negotiati...

Major push from the Department of Mines for negotiations

It is common knowledge in the mining industry that once a tenement is granted, conditions are placed on the tenement where the holder is responsible for upholding it. Such commitments include paying rents and rates, meeting expenditure, and lodging technical reports.

Failure to meet these conditions could see fines imposed, forfeiture of tenure, refusal of renewals from the Department of Mines or forfeiture plaints by other Parties. If a tenement is yet to grant, meaning the status is pending, these conditions do not apply.

There are various reasons for a tenement to stay pending, most common being, an objection which is lodged by a Party or Parties who will be affected by the grant of the new tenement which holds up grant until the objection is withdrawn.

In the past, the objection process could be misused to delay grant and allow companies to hold large tracks of land without needing to meet granted compliance obligations sometimes for years.

When resolutions cannot be met quickly, it can be extremely costly to the parties involved. For a company with limited income, this can become very onerous. 

Nowadays, the Mining Wardens are very proactive about pushing negotiations - either you reach resolution or you risk your tenure being refused.

A word of warning, although the Department is knuckling down on resolutions, greenmail opportunists are rising. They monitor tenements with no mercy and do not hesitate to plaint forfeiture actions or lodge objections against tenements, big and small. Dealing with these matters through Wardens Court can be very expensive if lawyers are involved and could lead to your tenements being gifted to the plaintor.

We are very proactive in Warden's Court matters to seek early resolutions. 

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