What’s changing?

The assessment fee for a major project mining application (capital cost of more than $1million) is based on the capital cost of the project and the project’s location, and is currently capped at $250,000. The cap comes into effect where a project has a capital cost of more than $100 million in a local government area or in a reserve established under the National Parks and Wildlife Act or more than $200 million outside of these areas.

This cap will be increased to $500,000 from 1 July 2024.

This will have a flow on effect to application fees for Programs for Environment Protection and Rehabilitation (PEPRs), because the initial PEPR application fee is set at 50% of the cost of the relevant mining lease assessment fee. The maximum PEPR application fee will increase from $125,000 to $250,000.

Why is this changing?

The proposed increase brings the assessment fee in line with the maximum fee payable for impact assessed under other legislation (such as the Planning, Development and Infrastructure Act 2016) and better reflects the costs to the State for undertaking what are significant and complex assessments.

Who does this impact?

To qualify for the major project assessment fee cap, a project must have a capital cost of over $100 million within a local government area or in a reserve established under the National Parks and Wildlife Act, or over $200 million in other areas of the State. These changes will impact new applications for projects that meet these criteria. It will also impact holders of recently granted leases that meet these criteria and have not yet submitted an application for an initial PEPR.

Where a project has a capital cost that is lower than the amounts described above, there will be no change to fees beyond the standard indexation increases.

What’s changing?

Application fees for industrial mineral projects are currently aligned with fees for extractive minerals applications.

From 1 July 2024, DEM will create a category of high-value industrial minerals and will align application fees for these applications with the fees for metallic mineral applications.

Affected fees include application fees (including the major project assessment fee for high-value industrial minerals), PEPR fees and change of operation fees.

Why is this changing?

DEM has identified that assessments of this category of high-value industrial minerals represent a significant workload for the State and are typically not of the same scale or value as other extractive and industrial minerals. The current fee structure and alignment of these fees with extractive minerals is not commensurate with the effort required to undertake these assessments.

Who does this impact?

The new category of high-value industrial minerals includes rare earths, graphite, kaolin, and mineral sands. This change impacts both current holders of tenements that produce these minerals, and applicants seeking a mining lease for these minerals.

What’s changing?

DEM is introducing a fifth level and tier for applications for a change in operations and applications for a PEPR review or a draft set of objectives and criteria for a private mine.

The Regulations currently set four levels and four tiers, which are then applied to applications, based on criteria set by the Minister such as the nature of the proposed changes and the operation’s production rate or rehabilitation liability estimate (or bond).

The fourth level/tier (currently the highest) is applied where the relevant operation has a rehabilitation liability estimate (or bond) of more than $10 million and where certain other criteria are met. The fee for the 2023/2024 financial year is $27,232.

The new fifth level/tier will only be applied where the operation has a rehabilitation liability estimate (or bond) of more than $25 million, and where the other criteria for a level/tier 4 change are met. The new fee for a level/tier 5 change will be $50,000.

Why is this changing?

The creation of this additional level/tier recognises both the increased workload and input required to assess these projects and the increased risk to the State that these operations pose (as demonstrated by the higher rehabilitation liability estimate).

Who does this impact?

There are only a very small number of operations which have a rehabilitation liability estimate (or bond) of more than $25 million. Those holders have been contacted directly to highlight this change.

What’s changing?

The Mining Act, Regulations and Ministerial Determinations establish the requirements associated with applications submitted under the Mining Act. If an application does not meet these requirements, it does not allow DEM to accept the application as valid and commence an assessment. In these instances, DEM returns the application fee to the applicant in its entirety. From 1 July 2024, DEM will retain a portion of the application fee for certain applications as an application validity assessment fee.

This change does not increase any application fees beyond the standard 3% increase, with the application validity assessment fee being a set component of the existing fee, and typically set between 15 and 25% of the application fee.

Why is this changing?

The introduction of this fee reflects the work required by DEM staff to assess the validity of applications. This fee is also intended to encourage applicants to submit better quality applications that meet the published requirements. Better quality applications improve the application assessment process, resulting in efficiencies for both DEM and applicants.

Who does this impact?

These validity fees will be applied for applications for new tenure (including exploration licences), PEPR and PEPR review fees, fees associated with Mine Operations Plans on Private Mines and Change of Operations applications.

These fees will not be applied for other application types, such as tenement renewals, consents for transfers and applications associated with mining register instruments.

What’s changing?

Retention Lease Application Assessment Fee

The assessment fee for retention lease applications is a set fee, determined by the proposed activities to be undertaken. A higher fee is set where the proposed activity is not limited to exploration operations.

DEM will introduce a major project assessment fee structure for retention lease applications which are not limited to exploration operations.

The major project assessment fee structure is currently used for mining lease applications, setting the fee as a percentage of the capital cost of the project based on the project’s location. Consistent with mining lease applications, the maximum cap for a retention lease application will be set at $500,000.

Retention Lease Rental Fees

The Mining Regulations set the annual rental for retention leases, with the rent based on the activities undertaken on the lease and the period since the lease was granted. For retention leases which permit only exploration operations, the rent is based on the area of the tenement, but with a minimum amount. The annual rent increases from $24.50 per km2 in the first five years of the lease to $111.00 per ha after the term of the lease has reached ten years. The minimum rent commences at $1,058.00 for the first five years of the lease but drops to $284.00 after the initial five-year period.

DEM has increased the minimum rent for retention leases after the initial five-year period, retaining an equivalent minimum rent for the life of the lease.

Why is this changing?

Retention Lease Application Assessment Fee

The set fee for non-exploration retention leases does not necessarily reflect the effort required to assess what can be major projects. Introducing the major project assessment framework results in retention lease application assessment fees being commensurate with the scale of the project and commensurate with assessment requirements.

Smaller projects may pay assessment fees less than the current fee, while significant projects, which typically require increased assessment scrutiny and coordination across government, will likely pay an increased fee.

Retention Lease Rental Fees

The rental structure for retention leases seeks to encourage the transition to a mining lease, by increasing rental the longer the retention lease is required. Having a minimum fee that reduced over time is counter intuitive to DEM’s intent. The increase in the minimum fee ensures that the rental for retention leases is consistent with DEM’s intent.

Who does this impact?

Retention Lease Application Assessment Fee

DEM receives only a very small number of retention lease applications, and not all of the applications are for non-exploration activities. This will impact only a small section of the industry.

Retention Lease Rental Fees

This change impacts only retention lease holders with very small retention leases, where the retention lease has been held for at least five years.