Regulations 16, 22, 23E and 32 of the Mining Regulations 1981 provide that
- Form 5 Operation Reports shall be filed at the Department within 60 days after each anniversary of the commencement of term of the tenement; or
- within any period of extension as approved under Section 162B of the Mining Act 1978.
If a Form 5 is not lodged within the required period notice of intention to forfeit proceedings will be initiated on the basis of non-compliance with the reporting and/or expenditure conditions.
Also make sure that the appropriate attachment is completed:
- Attachment 1 is to be completed only if exploration or mining activities have taken place on the tenement during the relevant period.
- Attachment 2 is to be completed only if prospecting or small scale mining has taken place on the tenement during the relevant period.
Incomplete or incorrect Form 5s lodged will not be processed or entered in the Tenement Register until the form complies with requirements.
NOTE: TENEMENT EXPENDITURE AND THE GOODS AND SERVICES TAX (GST) - It is required that expenditure on mining tenements be recorded and reported on an annual basis. The GST component of expenditure in connection with mining tenements should be included in the calculation of annual expenditure reported on the Form 5 Operations Report.
Information required on a Form 5
When completing a Form 5 report, the following details are required to be included:
- whether the report is an annual report, final report or surrender report (this also includes partial surrenders) for the tenement
- the period covered by the report (such as from the anniversary commencement date to anniversary conclusion date or surrender date)
- the type of tenement (including mining leases and prospecting, exploration and retention licences), and the tenement number
- brief details of any operations carried out during the period of the report (various suggested headings are on the front page of the Form 5)
- the expenditure amount claimed for each type of operation together with the total amount expended on the tenement
- the cost and detailed description for each activity claimed under Part A 'mineral exploration activities' or Part B 'mining activities (development and production)' in attachment 1
- details of any related annual mineral exploration report
- mineral commodity details.
Incomplete or incorrect Form 5’s will not be processed or entered in the tenement register until the form complies with the requirements.
Requirement to attach Mineral Exploration Reports
Detailed technical reports (Mineral Exploration Reports) are also required to be lodged in accordance with Section 115A mining tenements when certain geoscientific activities are undertaken in the search for minerals - including:
- programs involving one or more of the geological sciences (includes geological review, interpretation and target generation
- drilling programs
- activities involving the collection and assay of soil, rock, groundwater and mineral samples.
As a rule, a report is required where 'mineral exploration activities' have been claimed on the Form 5, any such reports shall include the following:
- methods of exploration
- a completed record of all geological, geophysical, geochemical and other technical investigations carried out by or on behalf of the tenement holder
- a complete record of all drill holes and excavations
- details of the nature of material tested and all assay results
- a summary of reserves in a form as recommended by the AUSIMM, AIG and AMIC
- statement of expenditure
- details of any amount claimed in lieu of wages
- a report title, names of any joint holder responsible for operations on the tenement, tenement information, date and complete table of contents.
All maps and sections shall be related to the Australian Map Grid (MGA) or to known surveyed points.
If a Mineral Exploration Report is required, it is to be attached to the Form 5 report and should be listed on the second page of the form (refer S115A and the instructions attached to the Form 5).
A combined mineral-exploration report may be submitted separately from the Form 5, where the due date (as agreed to by the department's Director of Geological Survey Division) differs from the anniversary date. In this case, the Form 5 should make reference to the mineral-exploration report containing details of the activities claimed.
When the minimum required annual expenditure will not be met for a particular year, an application for exemption (Form 18) must be completed by the tenement holder or an authorised agent.
Examples – How to Complete Expenditure (Form 5) Report
Examples and flowcharts to assist in the completion of Form 5 Report are detailed in the two documents below.
Operations Reports – Expenditure on Mining Tenement (Form 5)
Expenditure Report (Form 5) and Applying for Exemption from Expenditure Conditions, Mining Act 1978
Auditing of Reports on Operations – Form 5s
The Auditing of Reports on Operations – Form 5s guidelines summarises the policies and procedures used by DMP when the auditing of a Report on Operations (Form 5) is required to be undertaken.