Explorer FAQs
eastLand access arrangement costs
The Mining Act 1992 requires the holder of an exploration licence or assessment lease to pay the reasonable costs of a landholder’s participation in reaching a land access arrangement. These costs relate to the landholder’s time, legal and expert costs. This requirement to pay costs applies to negotiation, mediation, arbitration, and Land and Environment Court (LEC) hearings (if required).
Negotiation
Caps have been set on the reasonable costs payable at negotiation. These are:
- $1,500 (ex GST) for exempt prospecting operations
- $2,500 (ex GST) for assessable prospecting operations.
GST is payable for all reasonable costs, including a landholder's time spent participating in negotiating a land access arrangement, but only where the landholder is registered for GST (i.e. is a business).
An explorer can voluntarily pay the landholder more than these caps.
Mediation, arbitration and the LEC
An explorer must pay the reasonable costs of the landholder during mediation, arbitration and the LEC (if required). No cap has been set on these costs.
Costs payable by the explorer are determined by the arbitrator or by the court. A landholder’s conduct can be considered when determining the costs and there is a requirement under the legislation for both parties to act in good faith.
Evidence
Under the legislation, evidence must be presented to the explorer to show that the costs have been incurred.
Other costs
Cost of an arbitrator
The explorer must pay the costs of an arbitrator.
Compensation
Compensation payments are separate to the requirement for explorers to pay the landholder’s reasonable costs in reaching a land access arrangement.
Land access arrangements can include compensation to landholders for exploration activities on their land. In addition, title holders are also required to pay landholders compensation for any ‘compensable loss’ as defined in s262 of the Mining Act 1992, for loss or damage incurred in situations which are not covered in land access arrangements.