Office Of The Mining Warden Annual Report - Financial Year 2007-2008
NOEL LAIDLAW
Mining Warden
30th September 2008
Pursuant to s. 105 of the Mineral Resources (Sustainable Development) Act 1990 (“the Act”), I herewith present the annual report of this Office for the financial year ending 30th June, 2008.
The Office of the Mining Warden is created under Part 11 of the Mineral Resources (Sustainable Development) Act 1990. The current Mining Warden is Mr. Noel Laidlaw who was initially appointed in June 2000 and has, in terms of s. 96 of the Act, been re-appointed by the Governor in Council for another term of three years commencing on 23rd June, 2006.
The Mining Warden has two offices; one is located at 55 Myers Street Bendigo, the other at 10/55 Collins Street Melbourne. In addition to the Mining Warden, two staff are employed. They are Mr. Ivan Austin, the Registrar who is employed full time at the Bendigo Office and Mrs. Bronwen Herbert, Personal Assistant to the Mining Warden who is employed three days per week in the Melbourne Office.
During the Financial Year 2007-08, 12 new matters were brought before the Mining Warden.
| Nature of the matter (section of the Act) |
Number |
|---|---|
| s. 971 | 6 |
| s. 982 | 2 |
| s. 25A3 | 4 |
| Total | 12 |
1 Section 97 matters relate to disputes which are defined in s. 4 of the Mineral Resources (Sustainable Development) Act 1990 and relate to a dispute between two parties.
2 Section 98 matters relate to inquiries referred by the Minister for Energy and Resources or the Secretary of the Department of Primary Industries.
3 Section 25A relates to an inquiry made by the Mining Warden in relation to an application for a five hectare mining licence on a pre-existing Exploration Licence.
However, during the 2007-08 financial year, some 20 matters were considered, as some items were not finalised during the previous financial year.
The following table summarises the various sections of the Act, which relate to the matters.
| Number of individual matters considered |
Section of the Act |
|---|---|
| 6 | 88 |
| 4 | 15(6) |
| 4 | 25A |
| 2 | 31 |
| 1 | 14(2) |
| 1 | 39 |
| 1 | 41AA |
| 1 | 80 |
| Total | 20 |
Six matters (or 30%) of the total related to questions of compensation and access to private land under s. 88 of the Act. These actions were brought about by both licensees and by private land holders. The next two most significant groups of matters related to the four disputes each relating to s. 25A and the ability of a licensee or an applicant to satisfy s. 15(6) of the Act. These groups of four represented 20% of the total in each case. The two cases relating to renewals under s. 31 was 10% and the rest of the individual matters were 5% each. The following table summarises the nature and status of any dispute referred to the Mining Warden under section 97. This is prescribed by s. 105 (2) (a) of the Act.
| Case Number | Nature of the Dispute | Outcome |
|---|---|---|
| 7-Apr | A dispute between a licensee and a landholder concerning payment of compensation. | Following the intervention by the Mining Warden and numerous communications with the parties, the compensation was paid and operations continued on the private land. |
| 7-May | A dispute between a licensee and a landholder concerning payment of compensation and other matters relating to rehabilitation of private land. | Two hearings were conducted and a meeting on site with all parties was held. A new compensation agreement was produced and a number of operational matters relating to the mining as well as ongoing rehabilitation were addressed. |
| Jun-21 | A dispute between an applicant for the renewal of licence and the Department in relation to a proposal not to renew the licence. | The Mining Warden conducted an investigation into the matter and two formal hearings took place. The Mining Warden reported the matter to the Minister who agreed with the report and recommendations. The licences were renewed, a new work plan approved and a licensee is currently actively exploring the area. |
| 6-Oct | As a direct result of a previous dispute between a licensee and the Department, a program of establishing suitable protocols relating to the renewal of a licence was requested by the Minister. | The Office of Mining Warden in consultation with the Department has established new guidelines in relation to the process for the renewal of mining licences. |
| 6-Feb | A dispute between a licensee and a landholder concerning access to private land. | The pre-existing compensation agreement was renegotiated and certain operational aspects were developed in joint consultation between the licensee and the landholder. |
| 6-Sep | A dispute between a licensee and the Department in relation to an order made under s 41AA of the Act. | A previous order made under s. 41AA set a number of benchmarks and deadlines and operations on the licence progressed to completion. The Office of the Mining Warden facilitated the original terms of the order. A number of issues arose relating to the various deadlines and the ability of the licensee to comply with these requirements. The operations on the licence have now ceased and the rehabilitation program is completed. |
| 7-Aug | A dispute between a licensee and the Department in relation to the payment of a rehabilitation bond. | Following discussions with the applicant and the provision of certain legal advice, the licensee chose not to proceed with the matter. |
| 7-Sep | A dispute between a licensee and the owner of private land, which both use part of the mining licence as well as land adjacent to it. | This is an ongoing matter. There are a considerable number of issues in contention between the parties. There has been agreement on a number of issues and ongoing negotiations are occurring on the issues which have been unable to be resolved. |
| 8-Jan | A dispute between a licensee and the Department in relation to section 14(2) (b) of the Act. | A licensee was sought to produce significant quantities of by-product as part of the operations conducted under a mining licence. There was considerable support for the continued use of this product which was being used on the reconstruction of a major highway following the 2007 floods. A suitable agreement was eventually struck between the licensee and the Department to achieve these ends. |
| 8-Feb | A dispute between a licensee and the holder of private land in relation to obtaining access for exploration on the land. | Following discussions with the parties, a suitable arrangement was decided upon to allow exploration to continue on the land. |
| 8-Mar | A dispute between a licensee and the holder of private land in relation to the terms of a compensation agreement. | Following discussions with the parties a suitable basis for a compensation agreement was reached. |
| 8-Jul | A dispute between a licensee and the Department with regard to conditions on a work plan. | The matter was raised with the Minister and following advice from the Department a response was sent to the licensee. The Minister's office has been maintaining a keen interest in this matter. The Office of the Mining Warden continues to be providing up-to-date information with regard to this matter. |
The following table summarises the nature and status of any matter referred to the Mining Warden under Section 98. This is prescribed by s. 105 (2) (b) of the Act.
| Case Number | Nature of the Referral | Outcome |
|---|---|---|
| 5-Oct | Reference from the Secretary of the Department of Primary Industries as to the ability of an applicant to satisfy s. 15(6) of the Act. | The matter was referred to the Mining Warden by the Secretary following a report from the Victoria Police into certain individuals associated with a company which was seeking to have licences granted under the Act. The Mining Warden conducted an intensive investigation into the matter interviewing numerous witnesses and considering a large amount of documentary evidence. The Mining Warden presented the Secretary with a report, findings and recommendations regarding the matter. |
| Jun-20 | Reference from the Secretary of the Department of Primary Industries as to the ability of an applicant to satisfy s. 15(6) of the Act. | The matter was referred to the Mining Warden by the Secretary following a report from the Victoria Police into certain individuals associated with a company which was seeking to have licences granted under the Act. The Mining Warden conducted an extensive examination into the matters raised by the Secretary in a reference. A number of witnesses were called and a considerable amount of documentation was reviewed. The Mining Warden provided the Secretary with a report, findings and recommendations in relation to this matter. |
| 7-Jun | Following a long-standing commercial dispute between the operators of a mining licence, one of the parties wrote to the Secretary with a series of allegations in relation to one of the other partners. These allegations have been referred to the Mining Warden under Section 98 of the Act for report and recommendations. | This inquiry is ongoing and it is hoped to have the matter resolved within the forthcoming year. It is a case where the legislative provisions and the commercial aspects of the dispute had become closely intertwined. There has been involvement by The Victoria Police and ASIC. At least one of the companies which were operating the licence has been put into receivership. It is expected that this inquiry will be completed this year. |
| 7-Jul | Representations were made to the Minister by a landholder and licensee concerning certain allegations against an exploration licence holder and the Department. The Minister requested the Mining Warden to investigate the matter and prepare a report. | This matter was referred to the Mining Warden by the Minister. There has been a long-standing commercial dispute between two of the operators on the area in question. One of these operators made certain accusations to the Minister. It is hoped that this matter will be reported on in the forthcoming year. |
As required by s. 100(2) (c), the following other activities were commenced, conducted or completed during the financial year 2007-08.
In addition to the matters arising from s. 97 and 98 of the Act, four legislative matters were considered, which arose from applications made under s. 25A of the Act.
| Case Number | Nature of the matter | Outcome |
|---|---|---|
| 8-Apr | An application was made by an applicant for a small mining licence to be granted without the consent of the holder of the overlying exploration licence. | The Mining Warden recommended to the Minister that the waiver be granted. |
| 8-May | An application was made by an applicant for a small mining licence to be granted without the consent of the holder of the overlying exploration licence. | Following the intervention of the Mining Warden and subsequent discussions between the parties, consent was given by the exploration licensee and the s. 25A action withdrawn. |
| 8-Jun | An application was made by an applicant for a small mining licence to be granted without the consent of the holder of the overlying exploration licence. | Following the intervention of the Mining Warden and subsequent discussions between the parties, consent was given by the exploration licensee and the s. 25A action withdrawn. |
| 8-Aug | An application was made by an applicant for a small mining licence to be granted without the consent of the holder of the overlying exploration licence. | The Mining Warden recommended to the Minister that the waiver be granted. Part costs were awarded against the applicant in favour of the exploration licensee. |
Other Matters
It is essential for the effective operation of the Office of Mining Warden to maintain an active interest and involvement with the day-to-day activities of the industry in this State. Through activities organised by the Minerals Council such as the bimonthly “Cutting Edge” series of lectures as well as briefings from individual operators, The Mining Warden has been able to fully appreciate the range of activities occurring within this State.
Over the year, the Mining Warden has made a number of visits to mine sites and areas under investigation. These areas have included Clunes, Bright, Glen Wills, Bullarto/Trentham, Mt Egerton, Lake Albacutya, Ballarat, Yandoit, Fosterville, Glen Thompson, Maryborough and Dunolly.
The Office of the Mining Warden continues to foster close relationships with the various stakeholders in the mining industry. Foremost of these is the Minerals and Petroleum Division of the Department of Primary Industries. It is only natural that this Office should maintain a strong working relationship between itself and the Department whose job it is to regulate and promote mining in this State.
The Mining Warden continues to liaise with Victoria Police as well as a number of other enforcement and the regulatory bodies. These include The Australian Securities and Investment Commission, The Australian Tax Office, WorkCover, and a number of local government authorities. In relation to Victoria Police, there has been a consistent flow of information in both directions in relation to a number of companies, organisations and individuals which have or are operating in Victoria.
Over the period, the Mining Warden has continued to foster a healthy relationship with the various organisations which are representing operators in the mining industry. These include the Minerals Councils of Australia (Victorian Division), The Prospectors and Miners’ Association of Victoria and The Natural Gypsum Producers Association of Victoria. In addition, the Mining Warden was invited to address a council meeting of the Cement, Concrete & Aggregates Australia.
The Mining Warden continues to use the services of the Victorian Government Solicitor's Office as its principal legal adviser. Victorian Government Solicitor Mr. John Cain continues to provide first class legal advice to this office.
The Mining Warden has maintained an ongoing relationship with the Office of the Minister for Energy and Minerals. There has been regular communication between the two offices on matters of mutual concern. The Mining Warden accompanied the Minister to a gathering of small miners in Maryborough in June 2008. This offered the Minister the opportunity to communicate with the small miners and hear of the problems they face.
Finally, I would like to publicly thank my staff for their contribution to the efficient and effective operation of this office. Without their efforts, it would be impossible for this office to operate and provide the services it does to the various stakeholders in the mining industry.
I would also like to thank the various stakeholders who have had dealings with this office over the past twelve months. By and large, they have exhibited a commendable approach of co-operation and courtesy to both myself and my staff. They have attempted to assist with the work of this office and comply with the various requirements that have been requested.
I would finally like to thank the Minister and his staff for the co-operation with this office and the assistance that has been given when it has been sought.
NOEL LAIDLAW
Mining Warden
30th September 2008
