The DMP has recently issued a reminder to holders of mining tenements about their ongoing liability in relation to the payment of rent, fees and penalties in situations where their mining tenement has expired, been surrendered or forfeited.
The Department specifically notes that according to the Mining Act section 114B:
‘The expiry, surrender or forfeiture of a mining tenement does not affect the liability of the person who was the holder of the mining tenement immediately before its expiry, surrender or forfeiture to pay any rent, fee, royalty, penalty or other money on any other account payable on or before the date of expiry, surrender or forfeiture….’
Generally, rent payment on mining tenements have to be paid in advance for the year and within one month of the anniversary of the commencement date of the tenement. Any relinquishment, surrender or forfeiture occurring after the anniversary date will not change the liability of the tenement holder to pay the rent for the year in advance.
If an order for forfeiture is made for non-payment of the rent, the obligation to pay the rent and any unpaid penalties remains.
The take out message from this is that if you are the holder of a mining tenement, it is important that you assess prior to the anniversary of the tenement commencement date whether or not you want to hold on to that mining tenement. If you choose to surrender the tenement, then you should do so prior to the anniversary and not after to avoid being held liable for another year of rent and potentially other fees or payments.
The full article from the DMP can be found on: http://www.dmp.wa.gov.au/MT_enews/edition_5.html