Cost of Missing a Deadline

Cost of Missing a Deadline

Our mining tenement management world sees plenty of mistakes made by overworked and underpaid Exploration Managers of mining companies which can result in them losing a very valuable asset.  Difficult to explain to shareholders that the project you were touting as being the next bonanza suddenly disappearing because you were overwhelmed and missed lodging a critical action by the deadline which resulted in the mining tenement being forfeited by the Dept of Mines.

It can even happen to Rio Tinto who mounted a legal campaign to get the Shovelanna iron ore deposit back when they missed the deadline for lodging a renewal in 2005 which resulted in the death of this tenement.  This deposit was part of the $227 billion Rhodes Ridge iron ore deposit which was put in huge jeopardy due to staff being overwhelmed and missing a key date.

 Despite the headlines at the time warning mining companies what happens when you run foul of Dept of Mines deadline it appears they are still getting it wrong. 

More recently in 2019 Fortescue Metals Group fought an epic battle through the courts to get back a key exploration licence which they had held for more than 10 years and had spent $1.5 million exploring on.  Again, they were late in lodging the renewal.

Therefore it’s important to have good systems in place or a big bank balance for fighting the decisions which lead to the loss of key assets.

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