Community and land use

How mineral exploration and mining are regulated in Victoria

Mineral exploration and mining in Victoria follow strict rules to make sure environmental, social, and economic impacts are carefully managed.

The key legislation guiding this is the Mineral Resources (Sustainable Development) Act 1990 (MRSDA), which is administered by Resources Victoria.

Three main types of licences govern activities:

  • Exploration Licence: Allows companies to search for minerals but not mine.
  • Retention Licence: Enables further studies and planning without mining.
  • Mining Licence: Permits mineral extraction, subject to planning approval, work plans, rehabilitation strategy and bond, and community engagement.

Licence applications require advertising and a public feedback period.

If a licence is granted, explorers and miners must:

  • minimise environmental and health impacts
  • engage with landholders and communities
  • seek permission to access private property
  • provide compensation for any damage incurred and remediate any disturbances.

Licence holders must regularly report to Resources Victoria to show they are meeting all licence conditions. These reports must follow strict Victorian and Australian standards.

Resources Victoria’s technical experts check these reports and may use independent audits or peer reviews to confirm the findings.

A significant amount of early exploration activities is low impact and governed by the Code of Practice for Mineral Exploration to ensure responsible land use.

Where a mining licence is granted, mine construction cannot start until the company has:

  • an approved work plan, including a plan for rehabilitating the site
  • provided a rehabilitation bond
  • public liability insurance
  • a community engagement plan
  • consent and/or agreed compensation with landholders.

Compliance and enforcement

Resources Victoria’s compliance inspectors have legal powers to regulate exploration, quarrying and mining operations under the MRSDA. These powers include:

  • placing conditions on operations through licences
  • inspecting, auditing and investigating mining operations
  • issuing directions and notices
  • taking enforcement action which can be fines or prosecution.

Compliance teams operate across Victoria and can make scheduled or surprise inspections. When a breach or incident is reported, inspectors investigate. The type of response depends on how serious the issue is.

For smaller breaches, a written notice may be issued. For serious offences, the company can face fines or prosecution.

Resources Victoria also works with other agencies, including:

  • Environment Protection Authority (EPA)
  • Department of Health
  • Department of Transport and Planning
  • Local councils.

Other environmental and community safeguards

While exploration activities are widespread across Victoria at any given time, economic concentrations of a targeted mineral commodity are quite rare. Most exploration projects do not progress to mining.

Where projects advance towards a potential mine, an Environment Effects Statement (EES) is often required. This is a comprehensive assessment of environmental, social, and cultural impacts of a proposed project. The Minister for Planning makes the final decision on EES outcomes, which informs Resources Victoria’s approval process.

More information

If you are landholder and have a licence over your property, you may wish to visit our Mineral licences and landholder FAQs.

Page last updated: 07 Nov 2025