Requirements for extending the term of conditional licenses
Updated 23 September 2024
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In the provisions of Mining Remediation Authority conditional coal mining licences, an extension of the conditional term can be permitted, subject to:
such reasonable and proper further fees, consideration and conditions as the authority reasonably thinks fit including ….. the provision of appropriate information so that the authority can discharge its duties under Section 2(1)(b) and 2(2)(a) of the Coal Industry Act 1994
We cannot automatically extend the term of conditional licences on request as we need to be satisfied that licensed projects have been worked on, are being progressed and will be moved, if possible, to a point of de-conditionalisation rather than be held as assets.
As such we will need to be supplied with comprehensive written evidence, when an application is made to extend a conditional term, to enable it to make a reasoned decision whether to consent to the term extension. This evidence should include:
- substantive details of all the work and expenditure that has been undertaken on the project to date in support of the request for an extension of term
- a detailed and fully costed plan to progress the project in a second phase to licence de-conditionalisation
- evidence of the finance available to carry on and develop the project to de-conditionalisation (our financial requirements are set out in the application form)
- any site specific conditions set out in the licence (such as working obligations)
The term of the associated lease option will also need to be extended which will attract further option payments.
We have a duty to promote competition. If we consider that the licence conditions have not been fully met and we are aware of alternative interests, we could decide to advertise any application requesting an extension of the conditional term, in a newsletter, to allow other applications to be made.
If we take the decision not to extend the conditional term of a licence this does not prevent the licensee re-applying for a new licence over the same or modified area.