Exploration licence application kit

1. Complete, for each applicant, surname, given names, title and date of birth details. Alternatively, if the applicant is an incorporated company, enter the Name of Incorporated Company and ABN (Australian Business Number).

   Applications made by a company must be accompanied by a list of directors and company secretary of the company (including their respective dates of birth details) and a copy of the certificate of registration of the company or certificate of registration on change of name.

   If the applicant is a registered company, it must give its registered business address. If the applicant is an individual, they must give a physical address (e.g. street number and name). A Post Office (PO) Box address is not acceptable but may be used for the correspondence address.

   If there are more than two applicants, please indicate and include details of these applicants on a separate page attached to the application.

2. Applications made by agents or other persons on behalf of companies or individuals must be accompanied by a signed authorisation by the applicant(s) to act on their behalf with respect to the licence application. If this is not done, the application will be invalid and will not be accepted.

   If the agent is acting for the applicant(s) on more than one licence application, a copy of the authorisation must accompany each new application, and the original authorisation must be lodged with the department.

3. Indicate if the agent is to be the contact point for all enquiries regarding the application.

4. If the contact address for correspondence differs from the business address, complete the address for correspondence regarding this application. If the agent is to be the usual contact point for all enquiries regarding this application, enter the agent's address here.

1. Quote the name(s) of the 1:100,000 Mapsheet(s) over which the application area extends. These maps can be obtained from the Earth Resources Information Centre.

2. Obtain a print-out of the application area from the department. This will benefit you because it will show all areas which are unavailable for an exploration licence or that require particular consents (e.g. existing licences, certain Crown lands, etc).

   Mark the area you are applying for on this map to assist in identifying the area of the application.

3. Calculate the area covered by the application, in graticular sections, and enter it in the application. You are not required to enter the graticule numbers.

Under the Native Title Act 1993 (NTA) you are required to comply with the Right to Negotiate provisions of the NTA or reach an Indigenous Land Use Agreement.

For more information, see Mineral tenements under the Native Title Act 1993 which is intended as a guide only and is not legal advice.

Please rely on your own legal advice about native title prior to making decisions about your interests.

Option 1: Excise all Crown land except those areas where native title has been extinguished

If you have chosen option 1, then your application is assessed to ensure that the requirements of the relevant sections of the MRSDA have been met.

If Crown land has been excised from the application, leaving pockets of unallocated land within the application boundaries, the department will exempt these pockets of land from other licences, so that you can conduct your exploration program in an orderly manner.

Options 2 & 3: Applications with Crown land (other than Crown land where native title has been extinguished)

If you have chosen option 2 or 3 you need to meet the requirements of both the MRSDA and the NTA. These processes are conducted in parallel, and both must be completed before the licence can be granted.

Option 4: Applications with Crown land where there is a relevant land use agreement under the TOSA

If you have chosen option 4, you need to meet the requirements of both the MRSDA and the TOSA. These processes are conducted in parallel, and both must be completed before the licence can be granted.

Complete the estimated annual expenditure for each year of the licence. The department has expenditure guidelines for exploration (see below). These are the minimum requirements. The expenditure condition applying to a licence will generally be the minimum annual requirements set out below.

Where the proposed expenditures submitted with the licence application or a tender for a licence (under section 27 of the MRSDA) are higher than the minimum requirements, the proposed expenditures will be used as the licence expenditure condition.

The minimum expenditure for each year is (a x b) + c, where:

a = the relevant rate per graticular section;
b = the number of graticular sections in your exploration licence; and
c = the base level of expenditure per year.

* eg Gold, Silver, Copper, Lead, Zinc, Antimony **eg Mineral Sands, Diatomite, Kaolin, Coal.

Refer to the exploration licence guidelines for an outline of the items that can be claimed against expenditure requirements on the licence and the progressive expenditure over the licence term.

The exploration licence guidelines also list the items that cannot be claimed against expenditure requirements on the licence, the proportion of expenditure claimable for office-based activities and the proportion of expenditure required on sub-surface evaluation activities.

In order to comply with the provisions of section 15(6)(d) of the MRSDA relating to the applicant's ability to finance the proposed work and rehabilitation of the land, the following information is required to support the application:

Companies (with an audited financial report):

• Net equity (obtained from the balance sheet of the audited financial statements);
• Professional expertise in lieu of expenditure (refer to note below);
• Line of credit from a recognised financial institution; and/or
• Prospectus (must be underwritten).

In completing the application, you are required to enter in the amounts against each field. In respect to audited reports, you only need to write down the Net Equity figure.

Individual or Companies (without an audited financial report):

• Bank statement (no older than six months);
• Professional expertise in lieu of expenditure (refer note below);
• Line of credit from a recognised financial institution;
• Prospectus (must be underwritten);
• List of Plant & Equipment (owned by the applicant) - to be used for the purpose to which the application applies; and/or
• Share certificates.

In completing the application, you are required to enter in the amounts against each field. In respect to providing a bank statement, the applicant must advise of known liabilities that will affect the balance of the bank statement within a twelve month period.

The department reserves the right to seek from the applicant a copy of an updated bank statement at any time during the life of the licence.

The department measures your 'Net Financial Position' against the required expenditure for the application if granted for the first two years (i.e. the 'Net Financial Position' must exceed the required expenditure). Only the above information will be accepted as demonstrating the applicant's ability in meeting section 15(6)(d) of the MRSDA.

All information relating to financial details must be no older than six months at the time the information is submitted. You must disclose whether any of the applicants is an undischarged bankrupt, is in receivership or is under administration.

Provide details of the field of expertise of person(s) undertaking the exploration program, including the applicant's expertise and technical advisors to be engaged (e.g. geologist, engineer).

If these advisors are not employees of the applicant, you should indicate so in the place provided on the form. A statement, signed by the technical advisor agreeing to act for the applicant, must be provided with the application form.

If requested, the applicant should be able to provide evidence of their advisors' qualifications and a copy of their Curriculum Vitae.

Indicate your experience in exploration or mining activities or both.

Attach details or supplementary documents as necessary to provide information. This information might be important if the department is required to determine the merits of a competing application.

The matters to be considered by the Minister in determining whether a person is fit and proper are outlined in the overview section of the application kit.

In considering these matters the Minister must take account of the circumstances that led to the action, the nature of the offence, the penalty imposed and when the action was taken or the offence committed.

The fit and proper requirements extend to associates of licence applicants. An associate is defined as a director, partner, trustee, executive officer, secretary or any other officer or person associated or connected with the ownership, administration or management of the applicant's
business.

In determining whether a person is fit and proper, the Minister is not limited to consideration of the matters above.

It is a requirement of section 15(1BA) of the MRSDA that you must indicate the minerals you are seeking and type of targets you are proposing to explore.

This information is for the department's exploration industry statistics and also influences the amount of annual expenditure required in the licence conditions.

The application must include information about your work program for each year of the licence. A work program is a detailed outline of the work proposed and should address the points listed on the application form.

The program of work submitted with the licence application describing the work that will be undertaken must be completed. The program of work may only be varied with the agreement of the Minister.

Indicate your preferred annual reporting date from the options on the form (31 March, 30 June, 30 September or 31 December). The reporting date will be specified on the licence document.

Once a licence is granted, the annual Activity and Expenditure Return and the annual Technical Report, must be submitted within 28 days after the specified reporting date (Regulations 31 and 32).

Failure to submit the annual Activity and Expenditure Return and Annual Technical Report by the due date may result in infringement notices being issued.

Nominate the period for which the licence is required. Base this on the size of the exploration licence, the exploration program rate and the time required to obtain all necessary consents.

The maximum term for an exploration licence is five years with up to two renewals possible, for a period of five years or a lesser period as determined by the Minister.

The second renewal may only be granted where there are exceptional circumstances and where the Minister is satisfied that there is a likelihood of the licensee identifying minerals in the land covered by the licence during the period of the renewal.

Calculate the appropriate fee. The application must be accompanied by the correct fee, or it will not be accepted.

For a list of the current fees, see Licensing, fees and charges.

Advice is available upon request from the department's offices including the Earth Resources Information Centre.

If paying by cheque, make cheques payable to "Department of Energy, Environment and Climate Action".

When submitting the application, you must attach:

• A map showing the area covered by the application; and
• The application fee; and
• The proposed work program/plan; and
• Evidence of financial capacity.

Depending on your answers to the questions, you may also need to attach the following:

• A list of directors and company secretary of the company, including date of birth details;
• A copy of the certificate of registration of the company or certificate of registration on change of name;
• Signed authorisation from the applicant for an agent to act on their behalf;
• A statement by non-employee advisors of their agreement to act as advisors for this application; and/or
• Other attachments such as audited reports to the Australian Stock Exchange or other evidence of financial capacity to fund the proposed expenditure.

Indicate in the place provided on the application whether the application is accompanied by each attachment.

The application is invalid and will not be accepted if these items are not supplied where they are required.

Before you sign the declaration, ensure that:

• You have answered every question;
• All the information you have given is true and correct to the best of your knowledge;
• You have attached all the required supporting documentation; and
• You have attached payment for the appropriate fee.

All applications must be signed. If the application is in joint names, then all parties or their authorised representative(s) must sign the application form.

If one or more of the applicants is a Company, applications made by a Company must be signed by a Company Director or Company Secretary, or alternatively by a person who can provide written evidence that they are authorised to act on behalf of the Company with respect to that application.

Each signature should have the name and position of the person in the Company (if applicable) clearly printed. Priority is allocated according to the day the application is received by the Information Centre, Melbourne.