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Reduction of Area (NT)

Overview

Section 29 of the Act states that a title holder must reduce the area of an EL by 50% at the end of each period of 2 operational years, known as a reduction period. Before the end of a reduction period, the title holder must give the Minister a notice nominating the blocks to be retained in the title area of the EL.

NOTE: The reduction requirement under section 29 only applies to the initial term of grant.

After the reduction, the title area will comprise no more than 3 separate areas containing at least 4 adjoining blocks each.

What this means is at the end of every two years the title holder must reduce the area or apply to the minister to waive the reduction.

For example:
At the end of 2, 4 & 6 years OR if you like before the anniversary 2, 4 and 6 the title holder reduces or applies for a waiver. However, the year or anniversary reduction is only applicable if the title holder chooses to renew, as there is no requirement that the titleholder has to renew.

Granted 5/11/2011
Expires 4/11/2017

Anniversary12345
Yr 1Yr 2Yr 3Yr 4Yr 5Yr 6
5/11/20115/11/20125/11/20135/11/20145/11/20155/11/2016
4/11/20124/11/20134/11/20144/11/20154/11/20164/11/2017

Application for Reduction of Area

Waiver of Reduction

A Waiver of Reduction (WoR) can relate to any of the following:
  • No reduction of the title area - (full waiver)
  • A lesser reduction than is required – (partial waiver)
  • A deferral of reduction

It is important to note that a deferral does not remove the need to reduce the title area or make an application for a full or partial waiver at the end of the deferral period.

This provision is generally only utilised when the title holder wishes to undertake further assessment before a final decision is made on the title area. The maximum period allowed for a deferral is 12 months.

Requirements for a waiver of reduction application

The following information must accompany an application for a waiver of reduction:

  • Reasons behind the request;
  • Estimated expenditure and work undertaken to date for the current reporting year; and
  • Proposed expenditure and work program for the forthcoming year
  • Applications must also be accompanied by the scheduled fee

For guidelines for submitting an WoR (Form 29) see After grant of a mineral title forms and guidelines. This page includes links to:

  • Application to vary reduction requirement (approved form 29)
  • Reduction of title area of exploration licence
  • Flowchart - Reduction requirements of exploration licence This link will take you to “Reporting and geological sample submission forms and guidelines”
  • Guideline 7: reporting on mineral titles

Reduction of Area – Section 29 no longer needs to be lodged 30 days prior.
Reductions are still 50% and are required at the end of

  • Year 2
  • Year 4
  • Year 6

Reduction Variations – Waiver of Reductions (WoR) Fee $115

Section 29 - Reduction Period
Section 29 of the Act states that a title holder must reduce the area of an EL by 50% at the end of each period of 2 operational years, known as a reduction period.

Before the end of a reduction period, the title holder must give the Minister a notice nominating the blocks to be retained in the title area of the EL.

Example: Reduction period - end of year 2, 4 or 6.

After the reduction, the title area will comprise no more than 3 separate areas containing at least 4 adjoining blocks each.