Mineral Resources Act 1989

The Minister may require a preferred tenderer for a call for mining lease tenders to—

pay any amounts necessarily incurred, or to be incurred, to enable an application for the mining lease to be granted; and

do all or any of the following within a stated reasonable period—

give, under section 277, security for the lease;

pay the rental for the first year of the term of the lease under section 290.

The Minister may revoke a preferred tenderer’s appointment as the preferred tenderer if the tenderer does not—

apply for a mining lease within—

the application period mentioned in the notice given to the tenderer under section 317ZH; or

a longer period decided by the Minister on the application of the preferred tenderer; or

comply with a requirement under subsection (1); or

do all things reasonably necessary to allow an application for a mining lease to be granted to the tenderer.

However, before acting under subsection (2), the Minister must give the preferred tenderer a reasonable opportunity to provide reasons for, and rectify, the tenderer’s failure to—

apply for the mining lease; or

comply with a requirement under subsection (1) or (2)(c).

If the Minister revokes the appointment of the tenderer as the preferred tenderer under this section, the Minister may—

retain the whole or part of any tender security given by the tenderer, if the Minister considers it reasonable in the circumstances; and

appoint another tenderer to be the preferred tenderer.