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.
Security Deposits are held until either replaced by another security deposit or formally released once rehabilitation obligations have been discharged.
Acceptable forms of security deposits are either Cash or a Bank Guarantee.
Mineral Resources Tasmania does not charge fees or pay interest on cash deposits, which are held in Mineral Resources Tasmania's Cash Deposit Trust Account.
Cash deposits may be lodged by:-
Made payable to Mineral Resources Tasmania
Please call (03) 6477 7082
Dept of State Growth - Collections
MRT Security (insert your Lease or Licence number)
If making a Direct Deposit, an email notification is to be made to email@example.com 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.
BANK GUARANTEE - Guidelines 2017
Bank guarantees must be set up as follows:
Customer/Provider: The tenement holder.
Favouree: The Minister administering the Mineral Resources Development Act, 1995 (Tas) (ABN 36 388 980 563)
c/- Mineral Resources Tasmania
PO Box 56, Rosny Park Tasmania 7018
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:-
- 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.
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.
All fees for the setup and maintenance of bank guarantees are the responsibility of the client.
Further advice may be obtained by contacting Mineral Resources Tasmania:
Telephone: (03) 6477 7086 or (03) 6477 7098
Facsimile: (03) 6173 0222