The Mineral Resources (Sustainable Development) Act ("MRDA") prohibits mining and exploration for minerals unless you have a mining licences or another authority under the MRDA; (see section 8 of the MRDA).

The Crown owns all minerals, except where there is a 'minerals exemption'. (section 9 of the MRDA). Property of the minerals passes from the landholder to the Crown when minerals are separated from the land in accordance with that licence or other authority; (section 11 of the MRDA).

The Resources Industry Legislation Amendment Bill 2008 reformed the regulation of extractive industries in Victoria by extending the scope of the Mineral Resources (Sustainable Development) Act 1990 (Vic) to cover extractive industries, and repealing the Extractive Industries Development Act 1995 (Vic).

Under the MRDA, 'mineral' is defined as any substance which occurs naturally as part of the Earth's crust and includes: oil shale and coal (and hydrocarbons and mineral oils contained in, or extracted from, oil shale or coal); bentonite; fine clay; quartz crystals; minerals in alluvial form; kaolin; zeolite and lignite. Water, stone, peat and petroleum are specifically excluded (see section 4 of the MRDA). The Mineral Resources Development (Further Amendment) Act 2001 changed the definition of mineral to exclude peat.

It is an offence for a person other than the Crown to prospect, fossick, search for minerals, explore or mine on any land without authority (section 8 of the MRDA). Applications for mining or exploration licences may be made in accordance with section 15 of the MRDA.

Before a licence holder can perform any work they will be required to;

1. Lodge a work plan: A licensee who proposes to do work under a licence, other than low impact exploration work, must lodge a work plan with the Department Head (section 40 of the MRDA). A work plan must contain the prescribed information and must, if the licence is a mining licence, include a rehabilitation plan and a plan for community consultation (section 40(3) MRDA). A licensee has a duty to consult with the community during the period of the licence by sharing information relating to activities authorised by its licence, and giving community members a reasonable opportunity to respond.
2. Environmental impact statement (in some cases): The Minister may require an environmental impact statement to be lodged by the licensee (section 41A(1) of the MRDA) if the Minister is of the opinion that the proposed work will have a material impact on the environment. The Minister must submit for comment a copy of the environmental impact statement to the Minister administering the Planning and Environment Act 1987, and if applicable, the Crown Land Minister. These comments must be taken into account by the Minister when a decision is made to approve or vary a licence (section 41A of the MRDA).
3. Apply for a work authority: The next stage for the holder of a mining licence is to apply for a work authority. Work cannot commence until a work authoity is in effect. The Department Head must be satisfied of the matters set out in section 42 of the MRDA. The authority must be registered and the licensee must commence work within six months, unless the Department Head agrees to an extension of time (section 42(5) of the MRDA).

Any person may object to a licence being granted. The objection must be in writing, include grounds and be made within 21 days of the latest date on which the application was advertised. Objections are available for inspection by the public at the office of the Department (section 24 of the MRDA).

Although there are no specific grounds listed in the Act, you may wish to frame your objection around the conditions that may be imposed on the licence, these include;

• rehabilitation of the land;
• protection of the environment;
• protection of groundwater;
• providing and implementing environmental offsets on the land or any other land;
• entering into a rehabilitation bond;
• payment of an environmental levy;
• protection of community facilities.

(See Section 26)

In addition to the right to object, Section 39A of the MDRA Act contains a general duty to consult with the community by;

• sharing information about any activities authorised by the licence that may affect the community; and
• providing a reasonable opportunity for the community to express their views about those activities.

More information on community consultation can be found on the DPI website.

The following land is not available for exploration, mining and searching:

• land classed as a reference area under the Reference Areas Act 1978;

• national parks, wilderness parks and State parks unless a lease, licence, permit or authority under the Mines Act 1958 has been obtained, or certain exploration andmining licences were granted before the declaration of the Park;

• marine national parks or marine sanctuaries as declared under the National Parks Act 1975; and

• land which is the subject of an ongoing protection declaration under the Aboriginal Heritage Act 2006 (Cth).

The Minister may also exempt areas from exploration or mining licence (see section 6, 7).

Unless relevant consents are obtained, the owner of a mining licence must not carry out work within 100 metres of a dwelling houseland or Aboriginal sites protected under the Aboriginal Heritage Act 2006; or an archaeological site protected under the Heritage Act 1995 (Vic).

Consent may be given by the Minister to exempt a licensee from these restrictions after consideration of the advice of the Mining and Environment Advisory Committee or after consultation with the Municipal Council and any community group the Minister considers should be consulted (see section 46 of the MRDA).

The Minister may impose conditions on a licence including, but not limited to, granting a licence over an area smaller than the area which the the subject of the application, or imposing requirements in relation to the rehabilitation of land, protection of the environment and groundwater, expenditure, reporting discoveries of minerals, rehabilitation bonds, payment of fees including an environmental levy, payment of royalties (other than in respect of lignite), access to land subject to a licence, and protection of community facilities (section 26 of the MRDA).

Section 38 of the MRDA sets out the circumstances in which the Minister may cancel a mining or exploration licence, including but not limited to, non-compliance with the Act or regulations, unreasonable delay in obtaining consents or commencing work, and endangering the public or an employee on or near land covered by the licence.

The functions of the Mining and Environment Advisory Committee are to advise the Minister regarding exemptions of a licensee from the restrictions on mining, as well as to advise on any amendments to planning schemes relating to exploration or mining (section 49 of the MRDA). The Committee consists of seven members, six of whom represent the interests of the Department of Primary Industries (2), the Minister administering the Planning and Environment Act 1987 (1), small mining operators (1), the Victorian Farmers Federation (1) and the Victorian Chamber of Mines (1). The seventh is to be capable, in the opinion of the Minister, of representing environmental interests (section 50(1) of the MRDA).

A holder of a mining licence must rehabilitate land in accordance with a rehabilitation plan lodged as part of the licence application process (section 78 of the MRDA), and must not commence work without a plan (section 40 and section 42 of the MRDA). A rehabilitation plan must take into account any special characteristics of the land, the surrounding environment, the need to stabilise the land, and the desirability or otherwise of returning agricultural land to a state as close as possible to its original state as well as any potential long term degradation of the environment (section 79 of the MRDA).

A rehabilitation bond is payable and returnable to the licensee when the rehabilitation work is completed and is likely to be successful (section 82 of the MRDA). Rehabilitation must be carried out in the course of doing work (section 81 of the MRDA) and should be completed before the licence expires. If land has not been satisfactorily rehabilitated the Minister may take any action necessary to rehabilitate the land (section 83 of the MRDA).

Compensation is payable by the licensee to the owner or occupier of private land for any loss or damage sustained as a result of work under the licence, including loss of amenity and loss of opportunity, as well as actual damage to the land or any improvements to the land (section 85 of the MRDA). The compensation payable for loss of amenity is now limited to a maximum of $10,000 (section 89(3) of the MRDA).

In relation to Crown land, compensation is payable to the Crown, or to any lessee, licensee or permit holder on the Crown land concerned, for certain loss or damage sustained as a direct, natural or reasonable consequence or approval of a plan or carrying out of work (section 85A of the MRDA).

The Department Head is required to maintain a register of licences, licence refusals, compensation agreements rehabilitation bonds, work plans, authorities to commence work, and other documents (s. 69 of the MRDA). Anyone who pays the prescribed fee is entitled to information from the register (section 74 of the MRDA) that is not deemed by the Department Head to be of a confidential or commercially sensitive nature (section 74(1A) of the MRDA).

• Mining and the planning process

• The Mineral Resources (Sustainable Development) Act 1990 is available on Austlii

• Victorian Government - Department of Primary Industries

• Victorian Government - Department of Planning and Community Development

• Victorian Government - Department of Sustainability and Environment