What if I can't meet my expenditure?

Compliance with expenditure requirements: Exploration and mining licences – Mineral Resources (Sustainable Development) Act 1990

Exploration and mining licences granted under the Mineral Resources (Sustainable Development) Act 1990 – MR(SD)A, include a requirement for an annual expenditure commitment (refer condition No 3 for Exploration Licences and Condition No. 4 for Mining Licences). Gypsum mining licences do not require expenditure due to the intermittent nature of these operations.

Each licence has its own annual expenditure requirement calculated from rates set by the department (see: A guide to compliance).

Licence holders must be able to meet their individual licence expenditures. Failure to maintain the required expenditure may result in the licence being considered for cancellation.

Holders should also be aware that there is provision to apply for a variation to the expenditure amount, where extenuating circumstances occur, such as ill health, poor weather, equipment failure or safety issues. Should you be unable to meet your annual expenditure for a valid reason, you should lodge an application under Section 34 of the MR(SD)A, for consideration of a variation to the expenditure amount. Applications may be considered for a temporary variation in part or in full.

Each application will be considered on its merits and will be dependent on the departments acceptance of the reasons given. You should provide full details as to why the variation is being requested and also the period for which the variation is being sought. It is important to lodge a variation application prior to the period in which the reduction is expected to occur. The department is less likely to agree to retrospective variations.

You should contact your Licensing Officer for further details on expenditure requirements.

Page last updated: 02 Jun 2021