Legislation

Crown Minerals Act and regulations Continental Shelf Act Royalty regime Environmental management Health and safety Digital data submission

Acts and regulations

Crown Minerals Act 1991
The Crown Minerals Act 1991 sets the broad legislative policy for prospecting, exploration and mining of Crown-owned minerals in New Zealand. These include all naturally occurring gold and silver and substantial amounts of coal and other metallic and non-metallic minerals and aggregates, on land and offshore in the Exclusive Economic Zone and extended continental shelf. The Act was amended on 24 May 2013. Read the frequently asked questions about the Crown Minerals Amendment Act Regime changes.

Minerals Programmes
The Minerals Programme (Minerals Programme for Minerals (Excluding Petroleum) 2013) took effect on 24 May 2013 and sets out: how the Minister of Energy and Resources and the chief executive of the Ministry of Business, Innovation and Employment will have regard to the principles of the Treaty of Waitangi (Te Tiriti o Waitangi) for the purposes of the Minerals Programme how the Minister and the chief executive will exercise specified powers and discretions conferred on him or her by the Crown Minerals Act 1991, including the granting of permits and the making of changes to permits how the Minister and the chief executive will interpret and apply specific provisions in the Act or regulations made under the Act that defined areas of land of particular importance to an iwi's or hap's mana are excluded from the operation of the Minerals Programme or are not to be included in any permit general guidance on the Act and those regulations.

Current permits granted under a previous minerals programme will continue to be managed under that programme, until a change to the permit is requested or the permit holder opts into the new Minerals Programme. Applications pending on 24 May 2013 will be considered under the new Minerals Programme.

Previous Minerals Programmes Minerals Programme for Minerals (Excluding Petroleum) (2008) [2.4MB PDF]

Minerals Programme for Minerals other than petroleum and coal (1996) [456kB PDF] Minerals Programme for Coal (1996) [410kB PDF]

Regulations
The Crown Minerals (Royalties for Minerals Other than Petroleum) Regulations 2013 set out rates and provisions for the payment of royalties on production from permits. The calculation of royalties for permits granted before these regulations coming into effect, and any subsequent permits to those existing permits, is determined by the relevant minerals programme. These regulations also set out royalty statement and royalty return requirements for all minerals permit holders required to pay royalties. The Crown Minerals (Minerals and Coal) Regulations 2007 set out the requirements and procedures for explorers and miners to apply for a permit under the Crown Minerals Act 1991, make permit change applications, make royalty returns and payments, report to the Crown on prospecting and exploration and lodge core and samples with the Crown. These were amended on 24 May 2013. The Crown Minerals (Minerals fees) Regulations 2006 outline fees payable for the matters specified under the Crown Minerals Act for Minerals and Coal.

Continental Shelf Act 1964

The Continental Shelf Act ('CSA') makes provision for the exploration and exploitation of the continental shelf of New Zealand. In particular, it provides for the granting of licences in relation to prospecting and mining of minerals on the continental shelf, and the carrying out of operations for the recovery of minerals. From 24 May 2013, no further licences may be granted under the CSA. Any holders of prospecting licences granted under the CSA before 24 May 2013: may apply for a subsequent exploration or mining permit under the Crown Minerals Act 1991 as if the licence to prospect were a prospecting permit or exploration permit granted under that Act

will be grandfathered into the Exclusive Economic Zone and Continental Shelf (Environmental Effects) Act 2013, as these licences contain environmental conditions. Continental Shelf Act

Area closed for applications within the Continental Shelf

Pursuant to section 28A of the Crown Minerals Act 1991 and section 5AA of the Continental Shelf Act 1964, the Minister of Energy and Resources declares that permits for minerals other than petroleum will not be granted, or extended, in relation to the seabed or subsoil of the continental shelf (the land) specified in the Schedule below. Pursuant to section 28A(4) of the Crown Minerals Act 1991, this declaration does not affect any: (a) permit applications received before this declaration was published; or (b) permit granted before this declaration was published; or (c) right under section 32 of the holder of a permit described in paragraph (b) to be granted a subsequent permit. This declaration has effect on and from 4 July 2013 to 4 July 2015. Kermadec Reserve Area Map [623 kB PDF] Schedule of Reserved Area [11 kB PDF] Minerals permit webmap

Royalty regime

The Crown Minerals (Royalties for Minerals Other than Petroleum) Regulations 2013 set out rates and provisions for the payment of royalties for permits awarded from 24 May 2013. The calculation of royalties for permits granted before 24 May 2013, and any subsequent permits to those existing permits, is determined by the relevant minerals programme. The royalty framework for minerals consists of a specific rate for low value minerals, and a tiered ad valorem royalty (AVR) for gold, silver and platinum group elements. The AVR is one percent of annual net sales revenues for net sales revenues $1.5 million or less, increasing to two percent of annual net sales for net sales revenues that exceed $1.5 million. The specific royalty rates for specified minerals are defined in Part 9 of the Minerals Programme for Minerals (excluding Petroleum) 2008: the royalty rate for coal ranges from $0.30 - $1.40 per tonne sold depending on the type of coal. Coal and lignite produced from opencast mines is also subject to an Energy Resource Levy at the rate of $2.00 per tonne for coal and $1.50 per tonne for lignite the royalty rate for aggregates, limestone and decorative stone ranges from $0.10 - $1.50 depending on the mineral type the royalty for non-specified minerals (such as ironsand and phosphate) is at the discretion of the Minister.

Mining permits granted prior to 1 February 2008 will generally be subject to a hybrid royalty consisting of an ad valorem royalty (AVR) and an accounting profits royalty (APR). The annual royalty rate payable is the higher of: one percent AVR, that is one percent of the net sales revenues from a permit or five percent APR, that is five percent of the accounting profits from a permit.

In calculating the accounting profit, deductions are made and may include associated production costs, capital costs (exploration, development, permit acquisition and feasibility costs), indirect costs, abandonment costs, operating and capital overhead allowances, operating and capital costs carried forward and abandonment costs carried back.

Environmental management
Before a company can undertake certain activities, e.g. exploration drilling, they comply with the appropriate environmental legislation.

Onshore and offshore - up to 12 nautical miles from the coastline

Local authorities manage environmental consenting processes in their region under the Resource Management Act (RMA). Resource Management Act 1991

Offshore - more than 12 nautical miles from the coastline

Activities more than 12 nautical miles from the coastline will need to comply with new legislation that is expected to come into force in June 2013, managed by the Environmental Protection Authority. Exclusive Economic Zone and Continental Shelf (Environmental Effects) Act 2012

Other marine protection

Our marine environment is also protected under the Maritime Transport Act 1994, and the marine protection rules that come under the Act. This legislation applies to vessels, installations and ports, and is managed by Maritime New Zealand and by local councils. Marine protection legislation and international conventions

Biosecurity management
The Biosecurity Act 1993 provides for clearance of goods and management of incoming craft (including floating platforms) to reduce the risk of pests and diseases being introduced.

Health and Safety

The Ministry of Business, Innovation and Employment's High Hazards Unit administers the following legislation: Health and Safety in Employment Act 1992 Other regulations for extractive industries

Digital Data Submission Standards

The Mineral and Coal Digital Data Submission Standards 2011 [284 kB PDF] define acceptable formats for the lodgement of statutory digital information acquired by operators whilst undertaking prospecting, exploration and mining activities. Please note: To view this PDF, you will need Notepad++ Templates: For use in Notepad [7 kB ZIP] For use in Notepad++ [7 kB ZIP]

Please note: To use the Notepad++ templates you will need to download Notepad++.