This section identifies the Department of Mines, Industry Regulation and Safety’s (DMIRS) policies and procedures for the requirement, lodgement, variation, enforcement and retirement of UPBs as mining securities for compliance with environmental conditions imposed under the Mining Act 1978.
Requirements for a UPB
The form of mining security required by the Minister (or the Minister’s delegate) must be specific to individual tenements. An Unconditional Performance Bond (UPB) is a guarantee issued by a financial institution in favour of the Minister that may be called in by the Minister at will. The Minister is not obligated to discharge an unconditional performance bond.
All UPBs must:
- be completed in the department’s pre-approved pro forma bond document and accompanied by the pro forma cover letter
- include the names of all the registered holders of the mining tenement affected
- include the tenement type and mining tenement number
- be fully completed and correctly executed
- include a separate pro forma bond document for each tenement
- ensure bonds are not transferable from one party to another.
A UPB is a continuing unconditional liability and as such has no termination date. A UPB lodged stating a termination date will not be accepted.
There is no time limit on a UPB and it is not terminated upon the death of a tenement.
Share ratio of tenement holders is not required where the tenement is held by more than one holder.
Bond pro forma
The department’s pre-approved pro forma UPB documents (each relevant to a particular tenement type) are available below. The department requires UPBs to be in the format and text of these pro forma documents and submitted with the UPB cover letter pro forma.
Pro Forma Bond Document (Mining Act 1978 Tenements) for use in respect to all granted Mining Act mining tenements.
Transfer of tenement or conversion
Prior to the registration of any transfer of interest or conversion of a ‘bonded’ mining tenement, a substitute UPB in the name(s) of the new holder(s) or for the converted tenement must be provided. The replacement UPB must comply with the conditions of the tenement. The previous UPB will only be retired following the collection of the new UPB and the transfer of interest or the conversion.
Changes to UPB amount
When there is an increase in the UPB amount required for a tenement, a new UPB for the total amount can be lodged (once this is done the old UPB will be retired and the document returned to the relevant financial institution) or alternatively a UPB for the additional amount only can be lodged on the proviso that the combined sum of all UPBs held for the tenement equals the total amount required.
When there is a reduction in the UPB amount required for a tenement, a new UPB in the lower amount must be lodged before the existing UPB can be retired.
Stamp duty exemption
As a UPB is a requirement of the Mining Act 1978 it is exempt from stamp duty pursuant to item 7(6) of the Third Schedule to the Stamp Act 1921.