A production licence allows similar conditions to a mining lease, but over a greater area. Production licences apply only to category 4 minerals (petroleum products) and category 6 minerals (geothermal substances).
Production licence applicants must supply a security deposit to cover the cost of rehabilitation or environmental liability. The amount required is determined by MRT and reflects the cost to government for carrying out rehabilitation in the event of default by the licensee. The amount is determined according to proposed stages of development and rehabilitation in the mining plan.
The Minister may only grant an application for a production licence if satisfied that the applicant:
A. intends to undertake production of Category 4 or Category 6 minerals;
B. intends to comply with the MRDA;
C. has an appropriate plan of development or plan of field development;
D. has provided sufficient information relating to likely environmental impact;
E. has provided a security deposit; and
F. has provided any other information requested by the director.
Licensees are required to advise MRT of accurate production figures and pay royalties on a quarterly basis. Royalties are payable where the Crown owns the minerals.