Security Deposits

A Security Deposit must be lodged before any mineral tenement can be granted to ensure that there will be sufficient funds available for the remediation of the exploration or mining activities should the licensee or lessee default on their obligations.

All or part of a Security Deposit may be forfeited should the licensee fail to complete an agreed exploration program or if the licensee fails to comply with a condition of the licence.

Acceptable forms of Security Deposits are either Cash or a Bank Guarantee.

The Bank Guarantee must be from an authorised deposit-taking institution regulated by the Australian Prudential Regulation Authority (APRA) under the Banking Act 1959 and must be appropriately authorised to issue the guarantee.

Security Deposits are held until either replaced by another Security Deposit or formally released once rehabilitation obligations have been discharged.

Bank Guarantee Guidelines

Bank guarantees must be set up as follows:

Customer/Provider: The tenement holder.

Favouree: Minister administering the Mineral Resources Development Act, 1995 (Tas) Department of State Growth (ABN 36 388 980 563)

c/- Mineral Resources Tasmania, PO Box 672, Burnie Tasmania 7320.

Purpose: "...to cover obligations on mineral tenements granted under the Mineral Resources Development Act, 1995 held and/or operated by (insert Tenement holder's name) in the State of Tasmania..."

Expiry: Bank guarantees must not have an expiry date and should be the 'pay on demand' type.

Bank Guarantees must be set up as follows:

• From an authorised deposit-taking institution regulated by the Australian Prudential Regulation Authority (APRA) under the Banking Act 1959, and must be appropriately authorised to issue bank guarantees in Australia under Australian law.
• An original document on the financial institution’s corporate stationery signed by authorised officers of the financial institution; or
• An original document executed with the seal and signatures of authorised officers of the financial institution accompanied by an original letter from the financial institution issuing the guarantee certifying the authenticity of the document;
• An address for the relevant branch of the financial institution for notices must be included;
• All fees for the setup and maintenance of the Bank Guarantee are the responsibility of the client.

Cash deposit

• Cash deposits, lodged either by cheque, credit card or Direct Deposit, are held in Mineral Resources Tasmania’s Cash Deposit Trust Account;
• Mineral Resources Tasmania does not charge fees or pay interest on cash deposits.

Multiple Tenements

• Where a licensee holds a number of licences, one Bank Guarantee for the total amount of the Security Deposits that are required may be lodged. Mineral Resources Tasmania will note administratively the quantum of each Security Deposit held against each licence;
• Similarly, lessees holding more than one lease may lodge a Bank Guarantee for the total amount of the Security Deposits that are required.

Payment Details

All cheques are to be made payable to Mineral Resources Tasmania.

Cash deposits may be lodged by:

If making a Direct Deposit, an email notification is to be made to info@mrt.tas.gov.au of the payment details clearly stating:

• The tenement/s the payment is for; or
• The invoice number/s; or
• A full description of the purpose for which the payment is made; and
• Name, address and contact details of the party supplying the funds should we need to verify payment details.

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Further Advice

Further advice may be obtained by contacting Mineral Resources Tasmania:

Telephone: (03) 6477 7097

Email: info@mrt.tas.gov.au