True Fella Pty Ltd v Pantoro South Pty Ltd [2022] WAMW 19
The decision of the Warden on 18 August 2022 in this matter has had immediate repercussions in the mining industry.
The True Fella case concerned competing applications for an exploration licence. In summary, the Warden found the first application to be invalid on grounds which included that the accompanying s58 Statement did not include details of expenditure, work programmes and financial resources for the full five year term of the exploration licence, it only covered the first year. Additionally, the application did not provide details in respect of the whole of the ground applied for.
The implications of the case raise questions of the validity of the many granted exploration licences which did not include details for the full 5 year term in the s58 Statement at the time of making the application. Industry practice has been to include these details for the first year only.
The Minister put out a statement on 26 August 2022 stating that the Government “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”. DMIRS has commented on its website that it will be examining the decision in detail, including any potential impact on the current guidelines provided regarding Section 58 of the Mining Act. “DMIRS continues to ensure the security of title and integrity of the register is of prime importance in the administration of the resources industry in Western Australia”.
Ahead of a legislative solution or the decision being overturned on an appeal to the Supreme Court or greater clarity being given by DMIRS, the approach of strict compliance is being adopted by the industry with many companies choosing to lodge replacement or secondary exploration licence applications (with duplication of fees). Upcoming matters in the Wardens Court may also provide more certainty to the industry.