The Minerals and Petroleum Res-ources Development Act, introduced in 2004, put the custodianship of all SA’s mineral rights under the control of the state. Holders of mining and prospecting permits granted under previous legislation, dubbed old order rights, had to reapply for new-order rights.
Matthew van der Want, an attorney assisting Webber Wentzel partner Peter Leon, said a holder of a prospecting right under the previous legislation was given first right to reapply for that permit, but had to do so within a year of the introduction of the act, or it would lapse and another party could apply for it.
The date on which the prospecting right became effective was the date on which the environmental plan was approved. If there was no prospecting activity on the site within a specified period, the right would be lost — dubbed the use it or lose it clause.
Last week, a mining industry source expressed concern that prospecting rights that lapsed because they were not being used were given to new entrants who had also not used them, but continued to hold them. Some of the first prospecting licences were granted without expiry dates, he said.
Van der Want said he had not heard these complaints.
Nogxina said that holders of prospecting rights had 120 days from the date of the granting of the licence to start exploration activity, or the licence would be revoked. Sometimes it could be difficult to identify exactly what constituted exploration activity, he said, but the department would be conducting audits and inspections of all the prospecting licences awarded.
It had records of when prospecting licences were awarded on various sites, and would be sending inspectors to check that activities had begun on the properties.
