In Australia, mining companies receive authority, lease, license or authorization from the state or government of the territory, in accordance with the Mining Act, to explore or develop mineral resources. These “mining rental houses” transfer ownership rights to mining resources extracted from the “crown” to the tenant, but do not confer property rights on the surface and often exist with land rights. However, it is important to note that an access and compensation agreement may be limited to a defined activity, such as exploration, and that it cannot intentionally or otherwise be concerned about conversion to mining rents and expansion to mining activities (exploration agreements are generally easier and less costly to establish in the absence of a guarantee of the presence of a resource). This may provide another opportunity for experienced owners to negotiate additional compensation and conditions at a later date, once the project has been proven and the blocking of access systems is likely on the critical path to project development. Our mining team is involved in some of the largest and most important projects and agreements in the Australian mining sector. With an unparalleled knowledge of all aspects of the mining life cycle, our banking strength and experience puts us at the forefront of developments in this multifaceted sector. Third-party licences are not uncommon and we have seen that they are increasingly being used for ancillary infrastructure for mining projects. Before granting or accepting a licence, it is important to consider whether the surfaces can be used for the proposed purposes for the licence. Unlike leases, licences do not include interest in land ownership or propriety to the taker, and precautions should be used in the vicinity of PPSR registrations where the infrastructure must be located in a licensing area. In addition, since licences are not identifiable interests, it may be more difficult to assess a financier`s banking fitness. In some cases, the tenant has only limited entry fees under the Mining Act.
In Queensland and Western Australia, for example, the owner of the mine may enter private lands for low-impact exploration activities, provided they provide adequate notice. In general, however, the tenant may be required to secure another form of property (i.e., a subscription fee) before more invasive exploration programs or mineral production programs can be implemented. In more remote areas, no third-party agreement is required to access land for mining activities (for example. B if the underlying rights are not allocated). The minor is not obliged to notify you if they enter the country, unless the compensation agreement requires it. The purchase of the simple onshore interest levy (or, if applicable, the underlying pastoral lease) is a common strategy for mining companies and offers the tenant the benefit of free exploration and use of the country without restriction, subject to the conditions of its rental mining houses and environmental permits and all native ownership agreements. The purchase of the land also gives total security of the rent. One of the most important points we would like to consider when implementing due diligence in a mining operation (for example. B if a third party wishes to acquire a stake in a mining company), are fomental interactions, such as ownership or access agreements. They may enter the area of the right to mining or mining leasing only with the agreement of the miner, unless that authorization has been granted in the compensation agreement.