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How does the permit system work?

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In New Zealand Crown Minerals issue permits under the Crown Minerals Act 1991 for people to prospect, explore or mine Crown owned minerals.

The following table shows the differences between the permit types.  For information on applying for permits see our guide.

  Prospecting permit Exploration permit Mining permit
Purpose

To identify land likely to contain exploitable deposits

To identify deposits and evaluate the feasibility of mining

Economic recovery of an identied resource
Which permit? Previous work has not located a possible deposit

Often applied for first, rather than a prospecting permit, when higher impact work intended

The nature and extent of the mineable mineral resource or exploitable mineral deposit are known accurately

Activities

Very low impact, e.g. literature search, geological mapping, hand sampling or aerial surveys

May include literature review, drilling, bulk sampling and mine feasibility studies

Mineral extraction
Allocation
  • Acceptable work programme offer
  • Acceptable work programme offer
  • As a subsequent exploration permit following a prospecting permit
  • Newly available acreage (NAA) – competitive permit allocation process over available land following permit expiry, surrender, revocation or relinquishment
  • Acceptable work programme offer
  • As a subsequent mining permit following an exploration permit
  • Newly available acreage (NAA) – competitive permit allocation process over available land following permit expiry, surrender, revocation or relinquishment
Exclusive right Yes, unless non-exclusive permit sought Yes Yes
Duration
  • 2 years
  • Renewal up to another 2 years
  • 5 years
  • Renewal up to another 5 years over half of area
  • Appraisal extension possible
  • Up to 40 years but commonly under 20 years (related to extent of reserves and resources and work programme)
Size

No upper limit - relates to work programme

No upper limit - relates to work programme

Related to extent of discovery and work programme

Royalties Not applicable

Not applicable unless annual production is greater than $200,000 in value

For permits under the 1996 minerals programmes, 1% ad valorem royalty (AVR) for net sales revenues up to $1 million per annum. Where net sales revenues over $1 million pa, higher of either 1% AVR or 5% accounting profits royalty


For permits under the 2008 minerals programme:

specific rate royalty (SRR) for low value to volume minerals and tiered AVR for precious metals and platinum group elements

Guide to Completing the Annual Royalty Return [106 kB PDF]

Legislation

To view or print these PDF files you will require PDF viewing software: Adobe Acrobat Reader.

Land access rights
  • For minimum impact activity, 10 days notice except over special classes of land, e.g. urban conservation land
  • For other exploration and mining, land access arrangement with landowner and occupier
Related content
Last updated 5 August 2008

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