The New South Wales government has issued minimum standards to be considered by the Department of Regional NSW Mining, Exploration and Geoscience (MEG) when assessing an application for the grant, transfer or renewal of an authority. 

A copy of the standard is available here.

AIG received a copy of the standard dated June 2020 today.

The NSW Government states that holding an authority to explore for minerals in NSW comes with certain rights and responsibilities. MEG expects explorers in NSW to demonstrate a genuine commitment to the sustainable discovery and development of the state’s mineral resources, based on Schedule 1B of the Mining Act 1992 (Mining Act) that allows the decision-maker to take into account minimum standards when assessing an application for the grant, transfer or renewal of an authority. This standard details the mandatory criteria required to meet minimum standards and how MEG will apply them. 

The standards will be applied when assessing an applicant’s proposed work program, and when considering their technical and financial capability to carry out the work program and are intended to foster a commitment to effective and sustainable exploration. 

These criteria: 

• benchmark applicant credentials, experience and financial capability to explore in NSW 
• require applicants or transferees to submit geoscientifically and technically appropriate work programs that clearly describe the objectives, rationale and intended outcome of the exploration activities proposed over the term of the title, including environmental management and community consultation 
• in the case of renewal applications, require authority holders to demonstrate over the preceding term of the authority either of authentic and tangible progress in advancing the geoscientific knowledge of the resource potential of the authority or project area and making reasonable progress in advancing a project towards mining status.

The minimum standards are intended to facilitate informed, consistent and transparent decision-making on exploration licence and assessment lease applications and also provide greater clarity and certainty to applicants and the community on how MEG assesses applications for these authorities. 

The minimum standards apply to applications for all Exploration Licences (EL) and Assessment Leases (AL) under the Mining Act, including for coal authorities. They do not apply to applications for Mining Leases, Consolidated Mining Leases or Mineral Claims (i.e. Group 7 Opals). 

An applicant’s or transferee’s nominated technical manager must have either: 

• five or more years’ exploration experience in the mineral group(s) or deposit setting nominated in the proposed work program.
• membership with a recognised relevant professional organisation (e.g. AusIMM or Australian Institute of Geoscientists) at the minimum level of Fellow. 

An applicant’s or transferee’s nominated technical manager must have not, at any time, had their membership refused, revoked or suspended by the organisation for conduct-related reasons.  Anapplicant’s or transferee’s nominated technical manager must not have been convicted in the last 10 years of a serious offence under the Mining Act, the Protection of the Environment Operations Act 1997 or other relevant legislation or equivalent legislation in other jurisdictions.

Financial capability assessment requires applicant’s and transferee’s:

• are not bankrupt or in administration; 
• have sufficient capital currently on hand to meet the forecast expenditure and committed objectives of the entire work program; or
• have third party commitment for the provision of finance to meet the forecast expenditure and committed objectives of the entire proposed work program; or,
• their Board Members or Corporate Officers have successfully raised capital in the past for similar exploration programs in NSW or other jurisdictions.

MEG has published separate Work Program Guidelines that outline the expectations for how a work program is prepared in accordance with relevant legislative and regulatory requirements. These are available on the MEG website.   Guidance on how work programme requirements can be met is provided by MEG’s Work Program Guidelines. 

The guidelines are interpreted to represent explicit documentation of conditions that have previously applied to exploration tenement in New South Wales.  Technical Manager competence requirements, in some respects, are similar to the requirements associated with acting as a Competent Person ion compliance with the JORC Code.  The wording of the competence provisions is ambiguous in that being a Fellow of AIG or AusIMM appears to be optional.  The requirement for not having been subject to disciplinary action by AIG or AusIMM can only be satisfied by Fellows of either Institute.

Further information regarding the guidelines is being sought.  Feedback from Members is welcome.