Mineral licences and landholder FAQs

As per the Mineral Resources (Sustainable Development) Act 1990, the Crown (the Victorian Government) owns the State’s mineral resources.  The Act also lays the framework for the government to grant licences for exploration and the mining and of minerals.

Exploration

Exploration is the search for economic concentrations of mineral deposits. An exploration licence holder can only explore minerals within the approved boundaries of the licence. They cannot engage in mining.

An exploration licence holder typically starts by investigating the area. They may collect samples for testing. They may also do geophysical surveys, such as measuring magnetics, to study the subsurface. If the exploration licence holder finds signs of mineral concentrations, they might drill to explore further.

Most early-stage exploration activities are low impact and must follow the Code of Practice for Mineral Exploration. The Code includes an extensive definition of what is and is not low impact. Exploration activities that will have a higher impact – such as some drilling programs or test pits – must have a work plan approved by Resources Victoria before work starts.

An exploration licence is issued for 5 years and may be renewed twice for up to 5 years per renewal. It may cover an area of up to 500 km², or larger if allowed by the Minister.

Mining

Mining means extracting minerals from land to produce them commercially. It includes processing and treating ore. A mining licence is issued for up to 20 years and may be renewed. The licence area is normally limited to a maximum of 260 ha.

Exploration does not guarantee mining. The decision to mine depends on finding a mineral deposit that is big enough and concentrated enough to be commercially viable to produce.

Explorers may get useful geological information from areas covered by an exploration licence. But only a very small number of highly prospective areas would undergo intensive activities, such as drilling.

Usually just under half of Victoia is under an exploration licence, but only a fraction of 1% of land has a mining footprint.

Anyone may apply for an exploration, retention or mining licence. To be granted a licence, an applicant must satisfy the Minister (or his or her delegate) that they:

• are a fit and proper person to hold the licence
• intend to comply with the Act and carry out the proposed work
• have an appropriate program of work
• are likely to be able to finance the proposed work and rehabilitation of the land.

The licence applicant must place an ad within 14 days of being advised by Resources Victoria that their application is being processed. The ad must run in a local newspaper for the area. For an area exceeding 5 ha, the ad should also appear in a Wednesday edition of a statewide newspaper.

The local ad must include a map showing the application area. It must also explain how to object or publicly comment on the application.

Just because your property is within the area of an application does not mean entry to your land will be needed. If the licence is granted and entry is required, it could be for brief sampling or surveying, not for intensive exploration.

The Victorian Government GeoVic portal also shows licences and their location across the state.

The Mineral Resources (Sustainable Development) Act 1990 defines low- impact exploration as surface and subsurface investigations:

• without using equipment (other than non-mechanical hand tools) to excavate
• without using explosives
• without removing or damaging any tree or shrub
• without disturbing any Aboriginal place or Aboriginal object
• without disturbing any place or object on the Victorian Heritage Register, or any archaeological site or relic included on the Heritage Inventory, under the Heritage Act 1995.

No. Exploration is carried out under a licence issued under the Mineral Resources (Sustainable Development) Act 1990.

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Within 14 days of receiving notice from Resources Victoria that a mining licence application is being processed, the applicant must advertise the application. This should be done in a local newspaper for the licence application area. For an area exceeding 5 ha, the ad should also appear in a Wednesday edition of a statewide newspaper.

Notification

At the same time, the applicant must notify you, as a landholder within the licence application area, directly.

Yes. Any person can object to the granting or renewal of a licence.  You must lodge objections within 21 days from the last advertisement for the application.

An objection can be lodged online. Follow the instructions on our Have your say page.

An objection can also be lodged via post. You must include the grounds for which you’re making the objection and send it to:

Minister for Energy and Resources
c/- Manager Licensing
Resources Victoria
PO Box 500
East Melbourne Victoria 3002

A decision to grant or refuse the licence will not be made during the 21-day objection period.

All submissions are considered as part of the licence application assessment.

The licence holder must clearly mark the boundaries covered by the mining licence within 4 weeks of the license being granted. This includes:

• corner posts
• identification plates
• trenches.

If the mining licence covers an area larger than 5 ha, the boundaries need to be surveyed.

Under the Mineral Resources (Sustainable Development) Act 1990, a licence holder does not have automatic right of entry to private land. Licence holders must follow access requirements, which include:

• notifying the landholder
• gaining consent or
• going through the dispute resolution process if consent is not given.

If you believe that your agricultural land may be more economically valuable than the proposed mining, the licence holder must:

• write a statement of economic significance of the work that includes each owned or occupied property within the agricultural land, and
• give it to you within 6 months of the licence being granted, or before they lodge a work plan, whichever is earliest.

You can apply to the Minister to have your agricultural land removed from the mining licence.

Please refer to sections 26A, 26B, 26C, 26D and 26E of the Mineral Resources (Sustainable Development) Act 1990 for more details.

If exploration or mining is to be undertaken on your land, you may be entitled to compensation. This includes for:

• deprivation of possession of the whole or any part of the surface of your land
• damage to the surface of your land
• damage to any improvements on your land
• severance of your land from other land you own
• loss of amenity, including recreation and conservation values
• loss of opportunity to make any planned improvement on your land
• any decrease in the market value of your interest in the land
• loss of opportunity to use tailings disposed of with the consent of the Minister.

You may also be entitled to an extra 10% (solatium) for emotional or personal impact.

If you sell your land to the mining licence holder, no further compensation will be paid. If you need to buy new land, reasonable costs like moving expenses must be covered.

If you own adjoining land not part of the proposed licence area, you may still be compensable.

You will not be compensated for the value of any mineral in or under the surface of land covered by a licence.

You do not have to sell your land. If the licence holder does not purchase your land, they must:

• get your consent, which may involve the payment of compensation. If there’s to be compensation, then
• the licence holder should agree with you about the amount and basis of compensation (on which there are no restrictions). If a written compensation agreement is entered into, the licence holder must lodge it with the Mining Registrar.

If you and the license holder cannot agree on the amount of compensation, either of you can:

• take the claim to the Victorian Civil and Administrative Tribunal (VCAT)
• take the claim to the Supreme Court (Court) if the amount of compensation is greater than $50,000, provided that the claiming party has tried to settle the claim by conciliation.

If the owner and occupier of the land are not the same person, VCAT or the Court may decide that both are owed compensation. If a compensation claim goes to VCAT or the Court, the license holder must pay their own costs and the other party’s costs unless:

• the other party does not own or occupy the land covered by the licence (that is, they own or occupy land outside the licence area), or
• the other party has been frivolous, vexatious or has acted unreasonably, in which case VCAT or the Court may award costs as they see fit.

Exploration and mining licence holders must rehabilitate any land affected by their work.

For a mining licence, the rehabilitation work must follow an approved rehabilitation plan. This is included as part of the work plan and approved by Resources Victoria. For an exploration licence, the rehabilitation work must follow the licence conditions.

A rehabilitation plan should consider:

• the land’s unique features
• the surrounding environment
• how to stabilise the area
• whether it’s appropriate to return farmland to its pre-mining condition
• the risk of long-term environmental damage.

A mining licence holder must consult with you about the rehabilitation plan. You can ask the license holder to enter into a written agreement regarding rehabilitation.

A licence holder must lodge a rehabilitation bond with Resources Victoria. The bond guarantees that they will meet their obligations to rehabilitate the land. The return of a rehabilitation bond is conditional. The Minister must be satisfied rehabilitation followed the rehabilitation plan or licence conditions and is likely to succeed. You must also be consulted.

A mining project requires a planning permit, unless it has been the subject of an Environment Effects Statement (EES), and an assessment has been submitted to the Minister for Planning.

An EES is the state’s most comprehensive impact assessment process. It gives relevant licensing authorities the information they need to determine whether approvals should be granted and what conditions should apply.

To begin work under a mining licence, the licence holder must:

• have an approved work plan from Resources Victoria
• lodge a rehabilitation bond
• obtain all required consents and authorities (including planning approval, if needed)
• notify you and Resources Victoria of their intention to commence work within 7 days (or a shorter period, if agreed)
• obtain your consent or reach a compensation agreement
• hold valid public liability insurance.

Mining licence holders typically address the following environmental issues in their work plan:

• dust and noise emissions control
• drainage and discharge control (including storm water management)
• stability of any excavations, pits or dams
• erosion control
• noxious weeds and pest control
• removal or restoration of native vegetation
• progressive and final rehabilitation
• groundwater protection.

The Mineral Resources (Sustainable Development) Act 1990 mostly prohibits work close to homes. Licence holders can only do this if they have the right consent or authorisation. A license holder must not work within 100 m laterally of a dwelling house that was there before the approved work plan was registered for the licence.

A licence holder may still be able to do work within 100 m of your dwelling if they obtain your consent. Once given, you cannot take back consent. This also applies to any future owners of the land.  Consents must be registered on the Mining Register.

If you suspect that a licence holder is not meeting its obligation to minimise risk to people, property or the environment, you can contact an inspector at the department.

Complaints about an operation can also be registered with Resources Victoria. All complaints will be investigated by a departmental inspector.

This investigation could lead to:

• directions of measures that must be taken to remove or reduce the risk
• a prohibition notice preventing the licence holder from doing any activity related to minerals exploration or mining operations
• other action under the Act.

Repeated breaches may result in the department proposing cancellation of the licence. Other enforcement actions include prosecution and infringement notices. An inspector from the department will advise you of the investigation’s outcomes.

For recreational fossicking, the holder of a miner’s right may only search for minerals on your land with your consent. The holder of a miner’s right cannot:

• use any equipment for the purposes of excavation other than non-mechanical hand tools
• use explosives
• remove or damage any tree or shrub.

The holder of a miner’s right must repair any damage to your land from the search.