Licensing and approvals

‘Use it or lose it’ initiative

‘Use it or lose it’: exploration and retention licences

Most of the state’s prospective areas are already covered by exploration or retention licences. Resources Victoria wants to ensure these areas are being actively explored to maximise the chance of new discoveries.

That is why we are implementing the ‘Use it or lose it’   initiative  . This program strengthens compliance and encourages responsible resource development.

Understanding licence obligations

If you hold an exploration or retention licence, you must actively work on your licence area. This means you must:

  • do the work committed to in your work program or milestones
  • meet your expenditure requirements.

If you don’t do the above, Resources Victoria may:

  • ask you to surrender all or part of your licence
  • enforce partial cancellation under section 38A of the Mineral Resources (Sustainable Development) Act 1990 (MRSDA )
  • refuse to renew your licence
  • cancel licences held by those who repeatedly fail to meet requirements
  • refuse to grant new licences to you.

What this means for explorers

These changes will:

  • fast-track renewals for licence holders who regularly meet their licence conditions and legal requirements
  • increase checks on reports, including activities under Native Title and Land Use Activity Agreement
  • lead to more requests for information if data is missing or unclear
  • result in stronger action when licence conditions aren’t met
  • encourage licensees to give up areas they are not actively exploring
  • ensure fair processes, including the chance to explain your performance before any licence cancellation or refusal.

For more information on licences

Partial cancellation and waivers under section 38A

Under section 38A of the Mineral Resources (Sustainable Development) Act 1990 (MRSDA), exploration licence holders must give up parts of their licence areas over time.

What’s changing

Resources Victoria will only start a partial cancellation under section 38A if a licensee:

  • has not met their reporting or financial obligations, and
  • cannot show they are delivering their work program  or milestones.

Automatic waiver criteria

Partial cancellation will not apply if the licensee:

  • has submitted all required reports
  • has paid all rent invoices
  • is delivering the ir work program or milestones.

Notification and response process

If a licensee does not meet the waiver criteria, Resources Victoria will notify them at least 60 days before the 2nd, 4th, 7th and 10th anniversaries.

The licensee can then:

  • justify why they have not met their work program
  • provide evidence of any completed work
  • submit any outstanding reports
  • pay any outstanding invoices
  • nominate areas for cancellation.

Resources Victoria will review the information and decide whether to process or waive the partial cancellation.

If the licensee does not respond at least 30 days before the relevant anniversary, the Minister (or their delegate) will nominate the area to be cancelled.

Page last updated: 09 Dec 2025