Aerial view of rehabilitated heavy mineral mining operation at Goolawah, south of Crescent Head.

The Mining Act 1992, Petroleum (Onshore) Act 1991 and the Petroleum (Submerged Lands) Act 1982 empower the Minister for Mineral Resources to impose conditions on titles. Environmental and rehabilitation performance is enforced and regulated through title conditions. Other government agencies may have additional requirements.

Exploration titles standard conditions require companies to seek approval for activities which disturb the surface of the land and to submit a security deposit. 

Mining titles standard conditions require companies to submit a Mining Operations Plan (MOP) prior to commencing operations, subsequent Annual Environmental Management Reports (AEMR) and a security deposit.

Petroleum titles standard conditions require companies to submit a Petroleum Operations Plan (POP) prior to commencing operations, subsequent Annual Environmental Management Reports (AEMR) and a security deposit.

Environmental assessment process

All mining and petroleum projects and most exploration activities require environmental assessment under the Environmental Planning and Assessment Act 1979 (EP&A Act) before they can be carried out. There are three approval streams under the EP&A Act for development in NSW - these are regulated by Parts 3A, 4 and 5. Environmental planning instruments, predominately Local Environmental Plans (LEPs) and State Environmental Planning Policies (SEPPs), prepared pursuant to Part 3 of the EP&A Act, dictate which of these three approval streams apply in any particular circumstance. These three assessment/approval streams can be summarised as follows:

• Part 3A applies to projects identified in the State Environmental Planning Policy (Major Projects) 2005. The Minister for Planning is the approval authority for Part 3A projects.
• Part 4 applies to all development listed as being permissible with consent under an environmental planning instrument. The main planning instrument applying to mining-related development is the State Environmental Planning Policy (Mining Petroleum and Extractive Industries) 2007 which should be read in conjunction with the relevant LEP to determine if consent is required. Local councils or shires are the consent authorities for development requiring consent under Part 4.
• Part 5 applies to any other approval or decision of a government agency or authority to undertake an activity that does not require approval under either Parts 3A or 4 and is not listed as exempt development in an environmental planning instrument. In these circumstances, the relevant government agency conducts the environmental assessment. Part 5 is not strictly speaking an approval, rather it is an assessment process that must be applied to decisions regarding activities that are not subject to other approval process.

Development that is wholly prohibited by an environmental planning instrument cannot be carried out in any circumstance. Mining, petroleum and exploration related activities declared to be exempt development in the State Environmental Planning Policy (Mining Petroleum and Extractive Industries) 2007 do not require any environmental assessment under the Environmental Planning and Assessment Act 1979; however, they may still require approval under other legislation, including the Mining Act 1992, before they can be carried out.

Approval will not be given if the relevant approval agency considers that the environmental impacts of the project are unacceptable.

The following sets out the most common environmental assessment requirements for mining and exploration activities under the Environmental Planning and Assessment Act 1979. The following comments will generally apply to all new mining projects and most exploration activities. The environmental assessment requirements for modifications and expansions to existing mining projects may be different to those identified below due to transitional provisions associated with the Part 3A planning reforms. Independent expert advice should always be obtained regarding the environmental assessment requirements for approvals related to mining projects and large exploration projects.

Exploration proposals

NSW DPI Mineral Resources is the determining and approval authority for all exploration proposals other than those identified in Schedule 1 of the State Environmental Planning Policy (Major Projects) 2005.

In most cases a Review of Environmental Factors should accompany an exploration proposal. If the assessment process indicates that there is a likelihood of significant environmental impact then an Environmental Impact Statement must be prepared by the proponent.

Applying for exploration projects has further information regarding the environmental assessment requirements for exploration.

Mining proposals

New mining projects and any expansion of existing projects requiring the grant of a mining lease will require either development consent under Part 4 or project approval under Part 3A of the Environmental Planning and Assessment Act 1979, depending on the scale and location of the project and, in some circumstances, the existing approvals applying to the project. Generally speaking, all new coal mines, mineral sand mines and large metalliferous mines will require project approval from the Minister for Planning under Part 3A. Smaller metalliferous, non-coal, clay and extractive industry style mines will require development consent from the local council under Part 4.

The expansion of mining operations on some existing lease areas may not currently require approval under either Parts 3A or 4 due to transitional provisions associated with the introduction of Part 3A. Where this is the case, NSW DPI Mineral Resources will assess the activity in accordance with Part 5 of the Environmental Planning and Assessment Act 1979 before allowing the project to be carried out. This situation currently applies to the approval process for some longwall mining activities.

All applications for approval of mining proposals under Parts 3A or 4 must be accompanied by an environmental impact assessment. In the case of Part 3A, this is called an 'environmental assessment'. The environmental assessment must address the matters identified by the Minister for Planning. For mines requiring consent under Part 4, the environmental impact assessment may be either a Statement of Environmental Effects or an Environmental Impact Statement, depending on the scale and location of the activity. A Species Impact Statement may also be required in some circumstances. In all cases the environmental impact assessment and applications are publicly exhibited, and public submissions are sought, before the application is determined by the appropriate authority.

For more information on the Environmental Planning and Assessment Act 1979 assessment process, please see the Department of Planning website.

Petroleum proposals

Petroleum, exploration and production proposals in NSW require assessment under the Environmental Planning and Assessment Act 1979. The approval authority for petroleum proposals depends on the type and scale of the proposal. Although NSW Department of Primary Industries (NSW DPI) is the assessment and approval authority for some exploration activities, in the majority of cases the authority will be the Minister for Planning under Part 3A.

NSW DPI sets conditions and regulates activities on petroleum titles.

Onshore petroleum activities

Petroleum projects in NSW are regulated by NSW DPI through the Petroleum (Onshore) Act 1991.

Offshore petroleum activities

Petroleum projects in NSW waters (within three nautical miles of the coast) are regulated by NSW DPI through the Petroleum (Submerged Lands) Act 1982.

Petroleum projects beyond NSW waters (outside three nautical miles of territorial sea) are regulated by the Commonwealth Petroleum (Submerged Lands) (Management of Environment) Regulations 1999.