Mineral Resources Act 1989

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

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

has failed to pay the royalty or any other moneys payable under or in respect of the mining lease 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 lease;

cancel the mining lease; or

impose on the holder a penalty not exceeding 1,500 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 lease, called upon the holder to show cause within the time specified therein why the mining lease 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 lease at the person’s address last recorded by the chief executive and such cause has not been shown to the satisfaction of the Minister.

When the Minister pursuant to this section cancels a mining lease the Minister shall notify the holder and every person who holds a recorded interest in respect of the mining lease accordingly stating the reason for the cancellation.

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