Expenditure condition
If you're a holder of an exploration licence, you must carry out the work program and meet the expenditure conditions, detailed in the conditions on the licence.
For the first 2 years, you must follow the program and expenditure outlined in your original application for a licence.
After this period, you must nominate a realistic work program for each year the licence remains current.
Vary the expenditure condition
If you need to vary your proposed expenditure, you can apply to vary the expenditure condition.
This application is called a variation of condition (VOC).
You must apply for a VOC before the end of the sixth month of the current reporting period.
Get the variation of condition application.
You must pay a fee when you apply for the variation. Read about rents, fees and other costs.
Loss of block penalty
Your licence can be partly cancelled if you don't meet the expenditure condition.
This is known as a loss of block penalty, the department will issue a loss of block penalty notice if it imposes this penalty.
If you receive a notice, you can either nominate specific blocks to be cancelled or make a submission to the department to waive or reduce the loss of block penalty.
There is no cost to make a submission, the department will notify you in writing of its decision.
How cancellation is calculated
A formula will be used to assess how many blocks will be cancelled.
The calculation will be based on all of the following figures:
- how much was proposed to be spent for the operational year
- actual amount spent in the operational year
- number of blocks held.
Example
[$145,000.00 – $72,100.00] x 0.5 ÷ [$145,000.00 ÷ 125] = 31 blocks.
Cancellation of licence
Your licence can be cancelled in full if:
- you fail to meet your expenditure conditions or
- you do not carry out genuine exploration in the title area, or relevant part of it, for a continuous period of 2 years.
Exploration project area
If you're planning substantial expenditure, you can apply to combine 2 or more titles into an exploration project area.
Read more about exploration project areas.
Contact
If you have any questions, contact the Mines branch.