Level Pegging: Managing Mineral Titles in Western Australia
Report No 1 - June, 2002
Background
The mineral titles system provides a regulatory framework designed to
enable exploration and mining by providing fair access to mineral resources,
active development of these resources, and payment of mineral royalties
to the State, with minimal disruption to the environment and other land
use activities. This involves granting mineral titles, monitoring exploration
and mining activities, and enforcing compliance with title-holders' responsibilities.
What the examination found...
This audit examination reviewed the records of some 8400 mineral titles
in Western Australia to assess the efficiency and effectiveness of the
State's mineral titles administration. The main findings were in the areas
of:
Regulatory Framework
Despite on-going consultation with industry to maintain the relevance
of the Mining Act 1978 to current industry needs, many proposed legislative
amendments have yet to be enacted. Some of these proposals date back as
far as 1996. In addition, some administrative policies and procedures
have been implemented outside of the authority of the Act.
Timeliness and Cost
Irrespective of the impact of native title, the mineral titles application
process can take as long as 22 months. Significant delays occur in the
initial recommendation to grant by the Mining Registrar are due in part
to applicants failing to respond to requests for information.
Of the 1798 applications lodged in the first six months of 2000, 50%
had still to be referred for consideration under the Native Title Act
(Cth) 1993 at the time of this audit examination.
Administrative Decisionmaking
Department of Mineral Petroleum Resources (DMPR) lacks comprehensive and
authorised criteria and guidelines to guide staff in their decisions in
assessing mineral title applications and applications for exemption from
minimum expenditure conditions. Further, DMPR does not retain adequate
records detailing how and on what basis administrative decisions are made.
Consequently, DMPR is unable to reliably demonstrate that all title applicants
and all applicants for expenditure exemptions are treated equitably and
on the basis of objective and relevant considerations.
Managing Compliance
Only 11% of title-holders provide DMPR with information sufficient to
demonstrate that at least the minimum amount of expenditure is spent on
exploration or mining activity each year. 55% of title-holders required
to observe reporting and expenditure conditions either fail to report
annual expenditure to DMPR or report expenditure that is less than the
minimum required by legislation. A further 34% of titleholders report
compliance with minimum expenditure conditions, but they provide insufficient
information to support claimed expenditure.
Mineral titles that do not comply with reporting or minimum expenditure
conditions are subject to forfeiture of title either through private action
in the Mining Warden's Court or through DMPR forfeiture proceedings. However,
DMPR does not rigorously pursue forfeiture for non-complying titles.
What the examination recommended...
The key recommendations contained in the report deal with matters of:
Policy and Procedures
that DMPR:
- needs to actively pursue necessary amendments to the Mining Act and
ensure that all operational procedures are reliably authorised by governing
legislation and are consistently applied;
- determine an appropriate set of criteria for assessing mineral titles;
and
- establish clear guidelines and procedures for assessing expenditure
exemptions applications.
Operational
that DMPR:
- minimise opportunities for title applicants to delay or suspend the
application process;
- identify and address avoidable delays in the title application process;
- monitor and enforce compliance with the reporting requirements;
- initiate procedures to ensure that all tenements that do not comply
with minimum expenditure requirements and are refused exemptions (and
are not the subject of plaint action) are made subject to forfeiture.
Monitoring and Review
that DMPR:
- review record-keeping practices to ensure completeness and accuracy
of records;
- make the creation and validation of mineral title records an integral
part of operational procedures; and
- strengthen the quality controls on its information systems.
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