(1) The holder of an
existing exploration licence shall expend, or cause to be expended, in mining
on or in connection with mining on the licence during each year of the term of
the licence or, where the term of the licence is extended under
section 61(2) —
(a)
during each of years 1 to 5 of that term, not less than $300 for each square
kilometre or part thereof of the area of the licence with a minimum of
$20 000; or
(b)
during each of years 6 and 7 of the term of the licence, not less than
$50 000 per year irrespective of the area of the licence; or
(c)
during year 8 and each subsequent year of the term of the licence, not less
than $100 000 per year irrespective of the area of the licence.
(1aa) Expenditure
incurred under subregulation (1) or (1b) during the month in which the
anniversary date of the commencement of the term of the licence occurs may be
treated by the holder as expenditure incurred in either the year immediately
preceding that anniversary date or the year starting from such date (including
any period referred to in subregulation (1c)).
(1a) Where a part of a
block comprises or is included in the land in respect of which an exploration
licence is granted, the whole of that block is deemed to be subject to the
licence for the purposes of subregulation (1b).
(1b) The holder of a
graticular exploration licence shall expend, or cause to be expended, in
mining on or in connection with mining on the licence —
(a)
during each of years 1 to 3 of the term of the licence, $1 000 per
block —
(i)
with a minimum of $10 000 where one block only is
subject to the licence;
(ii)
with a minimum of $15 000 where 2 to 5 blocks are
subject to the licence;
(iii)
with a minimum of $20 000 where 6 or more blocks are
subject to the licence;
or
(b)
during each of years 4 and 5 of the term of the licence, $1 500 per
block —
(i)
with a minimum of $10 000 where one block only is
subject to the licence;
(ii)
with a minimum of $20 000 where 2 to 5 blocks are
subject to the licence;
(iii)
with a minimum of $30 000 where 6 or more blocks are
subject to the licence;
or
(c)
during each of years 6 and 7 of the term of the licence, $2 000 per
block —
(i)
with a minimum of $15 000 where one block only is
subject to the licence;
(ii)
with a minimum of $30 000 where 2 to 5 blocks are
subject to the licence;
(iii)
with a minimum of $50 000 where 6 or more blocks are
subject to the licence;
or
(d)
during year 8, and each subsequent year of the term of the licence,
$3 000 per block —
(i)
with a minimum of $20 000 where one block only is
subject to the licence;
(ii)
with a minimum of $50 000 where 2 to 5 blocks are
subject to the licence;
(iii)
with a minimum of $70 000 where 6 or more blocks are
subject to the licence.
(1c)
Subregulations (1) and (1b) apply in respect of any period in which an
exploration licence continues in force because of —
(a) an
application to extend the term of the licence under section 61; or
(b) an
application for a lease under section 67; or
(c) an
application for a retention licence under section 70B,
except that the amount
to be expended during that period is to be calculated on a pro rata basis for
each whole month from the last anniversary date of the commencement of the
term of the licence until the application is determined.
(1d) If an application
for the extension of the term of an exploration licence is granted after the
date on which the licence would have expired (but for section 61(3)), the
amount to be expended under subregulation (1) or (1b) during the period
from the date on which the application is granted until the next anniversary
date of the term of the licence is to be calculated on a pro rata basis for
each whole month of that period.
(1e) The specific
provisions in regulation 96C, relating to allowable expenditure and
non‑allowable expenditure for the purposes of calculating expenditure
under a licence, apply when calculating expenditure under this regulation.
(2) If an exploration
licence is surrendered then a pro rata reduction of the amount to be expended
will apply in respect of each whole month from the date of surrender to the
next anniversary date of the commencement of the term of the licence.
(3) If during a
particular year of the term of an exploration licence or any period referred
to in subregulation (1c), the holder of the licence is directly engaged
part‑time or full‑time in mining on land the subject of the
licence, an amount equivalent to the remuneration that the holder would be
entitled to if engaged, under a contractual arrangement, in similar mining
activity elsewhere in the district is to be deemed to have been expended
during that year or period, as the case requires.
(4) If an exploration
licence has retention status, the amount to be expended during the year of the
term of the licence in which retention status is approved is to be calculated
on a pro rata basis for each whole month from the last anniversary date of the
commencement of the term until the end of the month in which the approval
takes effect.
(5) Despite
subregulations (1) and (1b), if an exploration licence has retention
status, expenditure is not required under this regulation during any year of
the term of the licence after the year in which retention status is approved.
[Regulation 21 amended: Gazette
16 Nov 1990 p. 5728; 31 May 1991 p. 2697;
31 Jul 1992 p. 3776; 13 Oct 1995
p. 4814‑15; 11 Jun 1999 p. 2543;
18 Jun 1999 p. 2642‑3; 17 Jan 2003 p. 110;
3 Feb 2006 p. 581-3.]