Brisbane 11 December 2013. The Newman Government is reviewing the rents-payable system for holders of mineral development licences to make it more equitable and encourage resource development.

Minister for Natural Resources and Mines Andrew Cripps said all mineral tenures pay an annual rent for the land, but the rates had not been modernised for two decades under Labor.

“Mineral development licences, where are the next tenure step after exploration, allow the tenure holder to conduct feasibility and environmental studies and metallurgical testing to assess the commercial potential of an area for resource development,” Mr Cripps said.

“Queensland is the only state that has a rental regime for mineral development licences that incorporates an increasing rate over the first five years of a licence, as well as increasing discounts for larger areas.

“The former Labor Government let this system continue to operate for almost two decades, without ensuring that the arrangements were efficient and relevant to the modern resource sector.

“Some tenure holders have amassed large tracts of land for extensive periods of time, which fails to encourage exploration and development.

“The Newman Government would like to see prospective land developed or turned over to companies that will pursue exploration and this proposal will be a boost for explorers in Queensland.”

Mr Cripps said it was estimated licences covering more than 15,000 hectares in size made up 33% of the total area held under these tenures yet contributed only 9% of the total rental revenue.

“Conversely, licences smaller than 1,000 hectares in size comprise only 3% by area yet contribute 11% of the rental revenue and that is clearly not fair,” he said.

“The Newman Government promised at the election to grow resources as one of the four pillars of the Queensland economy.

“Examples such as the inequity in these licences clearly show Labor wasn’t interested in the industry.

“In contrast, we want to see competitive tendering processes in place to ensure the most appropriate explorer with a commitment to resource development is able to secure available land.

“Having large amounts of land locked up from resource development is counter-productive.”

Mr Cripps said the Regulatory Impact Statement, released today to industry, suggests  a way to amend the rental regime.

“We are proposing rental rates increase progressively over 10 years to match the rental rate payable on a mining lease and for area discounts to be gradually phased out over a four-year period,” he said.

“We are committed to working with industry to achieve fairer outcomes for the mining industry and for Queenslanders who own these precious mineral and coal resources.”

Interested parties have until Friday, 28 February 2014 to lodge submissions on the proposed changes.

More information is available at:

http://mines.industry.qld.gov.au/mining/amendments-development-licences.htm