Mineral Resources Act 1989

If the Minister considers that the holder of a mining claim—

has carried out activities that are not bona fide for the purposes for which the mining claim was granted; or

has failed to pay the royalty or any other moneys payable under or in respect of the mining claim by the due date for payment; or

has failed to comply with any condition that is to be observed and performed by the holder under or in respect of the mining claim;

cancel the mining claim; or

impose on the holder a penalty not exceeding 100 penalty units.

The Minister shall not act pursuant to subsection (1) until the Minister has, by notice in writing in the approved form served on the holder of the mining claim, called upon the holder to show cause within the time specified therein why the mining claim should not be cancelled or a penalty imposed and served a copy of the notice on every person who currently holds a recorded interest in respect of the mining claim at the person’s address last recorded by the Minister and such cause has not been shown to the satisfaction of the Minister.

If the Minister pursuant to this section cancels a mining claim, the Minister shall notify the holder accordingly stating the reason for the cancellation.

The cancellation of a mining claim under this section shall take effect on the day next following the Minister’s determination to cancel the mining claim.