PERTH (miningweekly.com) – The Western Australian resources sector has welcomed the quick response by the state government’s Mines and Petroleum Minister following the Warden’s Court decision to declare an exploration licence invalid.

In the matter True Fella vs Pantoro South, the Warden found that True Fella’s application for an exploration licence was invalid owing to the applicant submitting a non-compliant 58 statement.

The two companies had been competing for an exploration licence application over the same area, and had objected to each other’s application.

The ruling could potentially have consequences on the validity of granted exploration licences in Western Australia.

Mines and Petroleum Minister Bill Johnston said on Friday that the Department of Mines, Industry Regulation and Safety (DMIRS) is examining the Court decision,  including any potential impact on the current guidelines provided regarding Section 58 of the Mining Act.

“I have been informed of the Warden's Court decision relating to True Fella's exploration licence application. Industry can be assured the government is taking this matter very seriously, and will act to ensure certainty and security of tenure for proponents. 

“This will include any steps necessary to ensure the validity of granted exploration licences,” Johnston said.

The Chamber of Minerals and Energy welcomed Johnston’s comments, with acting CEO Rob Carruthers saying it was important explorers were not subject to application requirements for exploration licences which become so onerous that they served as a barrier to undertaking effective exploration.

“While it’s understandable that applications for exploration licences under the Mining Act 1978 require sufficient evidence of planned work and expenditure schedules, it also needs to be understood that exploration is a high-risk activity that often delivers little or no reward,” Carruthers said.

“It would be extremely difficult for an explorer to practically map out such a schedule over a period of five years, no matter the size of their operations or the resources at their disposal. 

“Exploration is at the heart of everything the Western Australian mining and resources sector does and without it projects small, major and all sizes in between simply wouldn’t get off the ground.

“It’s clear from the Minister’s comments that the government has a full appreciation for the realities of the exploration industry, which is both long-run but fundamentally reliant on agility and short-term results,” Carruthers said.

The Association of Mining and Exploration Companies (Amec) also welcomed Johnston’s swift response to address the uncertainty created.

“[Johnston’s response] is very welcome news for industry as the decision could potentially have had far-reaching implications for the mining and mineral exploration industry,” said Amec CEO Warren Pearce.

“All mining and exploration companies and their investors can be extremely confident that the State of Western Australia remains a safe and stable investment destination.”

“This is evidenced by the swift response of the Western Australian government, and the DMIRS, in acting to ensure the security of granted tenure and the integrity of the register.”

“This strong support from the Western Australian government is one of the principal reasons Western Australia was considered the world’s No. 1 mining jurisdiction in the most recent and internationally renowned Fraser Institute Annual Survey of Mining Companies,” said Pearce.