Exploration Licence (EL) (SA)
The Department of Energy and Mining web site contains information on exploraiton licences and in the Information Sheet but in summary:
An EL can have a maximum term of 18 years and renewed every 6 years.
A application for renewal must be lodged at prior to expiry of the existing EL, but not sooner than 3 months before expiry.
Renewal of term is normally granted in increments of 1 or 2 years. Where the licencee seeks a renewal of term (within the maximum term of 6 years), an application for renewal must be lodged a minimum prior to expiry of the EL.
I licencee may surrender a portion of an EL at any time (though it is not compulsory unless an AEA is imposed) if all regulatory obligations are complied with.
The minimum expenditure requirement is:
- Level 1 (years 1 - 2), minimum $20,000 plus $50/km2 per year;
- Level 2 (years 3 - 6 , minimum $30,000 plus $100 /km2 per year;
- Level 2 (years 7 - 18), minim* um $30,000 plus $150 /km2 per year * All levels rounded to the nearest $5,000.
At least 60% of the expenditure commitment must be spent on on-ground work or acquiring and/or using new data ie a maximum of 40% can be spent on office-based work on old data, which includes activities like literature reviews and data re-modelling. The minimum 60% requirement does At least 60% of the expenditure commitment must be spent on on-ground work or acquiring and/or using new data ie a maximum of 40% can be spent on office-based work on old data, which includes activities like literature reviews and data re-modelling. The minimum 60% requirement does
If an expenditure commitment is not met, the licence will be subject to area reductions or cancellation, unless there are valid reasons for expenditure deferment or variation A licence holder can apply to the DSD for a Amalgamated Expenditure Arrangement (AEA) A licensee may apply in writing, at any time during the term of an EL, for a variation of expenditure or work commitments. Any such application must include full supporting detail and be accompanied by a fee.
Every anniversay of a licence being granted a Summary Report along with a expenditure statement must be lodged.
Expenditure reports are due every 2 years. If the expenditure commitment for an individual EL or AEA has not been met during the expenditure return period and an expenditure deferment or variation has not been approved:
- a 25% area reduction will generally be applicable for a first offence
- a 50% area reduction will generally be applicable for a second offence
- a recommendation will generally be made to cancel the licence for a third offence.
Exploration Technical reports are due with 60 days after:
- annually after an anniversay;
- after an expiry;
- partial surrender or surrender;
- after the joint reporting due date.
for all exploration on ELs, RL and MCs
Guidelines ouline the requirements for exploration reporting including Summary Reports.
Schedule of Fees and Charges outlines the rents and administration fees.
Dealing in a EL
It is worth quoting the DSD web site: Where a licensee wishes to promote a public company to take over an EL as the whole or part of its objectives, the total consideration to the licensee, either in cash or shares, shall not exceed the cost of the work performed, including the cost of the investigation of any tenements granted pursuant to the EL. Also EL can not be transferred in its first year of tenure. The transferee must show technical and financial ability to under the exploration.
Exploration Work Approval A licencee is requred to have an approved program for environment protection and rehabilitation (PEPR), prior to the commencement of any exploration on the EL.
Native TItle
Right to explore on an EL that is over a native title claim may be acquired by agreement with the Native Title Parties or a determination by the NNTT authorising exploration.