Mineral Prospecting
Prospecting Licence
The owner of land may prospect for minerals under his own land subject to compliance with planning and environmental legislation, provided the mines and minerals have not been excepted. Under the Minerals Development Act, an application may be made for a prospecting licence to the Ministers.
Where the Minister is satisfied that there are minerals under any land and that such minerals are not been worked efficiently or effectively, he (the Department) may take steps to enter the land and do things necessary to ascertain the character, extent and value of the minerals. Borings may be made, and reasonable quantities of minerals may be removed for testing and experiment. Sink pits and water may be removed from old working.
Alternatively, the Minister may grant a prospecting license to a mining company. The prospecting license is granted on such terms and conditions as the Minister determines. There are required clauses set out in regulation.
Application
DECC publishes notices in local newspapers and on gov.ie to inform the public where a Prospecting Licence is about to be granted or renewed. These notices include any assessment of the environmental effect of the activity. You can make submissions or objections to these licences within 30 days from publication of the notice.
In February 2020, DECC compiled a list of Common Questions and Concerns that were raised by members of the public during previous Prospecting Licence public consultations. Answers and information addressing these questions and concerns have been published alongside them.
The form of licence application for a mineral prospecting rights licence is defined by regulation. Where the Minister or a prospecting licensee exercises rights under the legislation, either directly or by licence, they must pay compensation for damage done to the surface of any lands, mineral deposits, water supplies or nuisance caused directly or indirectly.
Powers and Terms
The Minister has powers to grant a prospecting licence where there are minerals, which are not being worked or are not being worked efficiently. The Department may enter lands for the purpose of ascertaining the character, extent and value of materials. This includes making boreholes, taking samples and taking in quantity sufficient for analysis, trial and experiments.
Prospecting licences are granted on such terms as the Minister specifies. The Minister determines the amount of the payment for the consent of the Department of Finance.
A prospecting licence authorises the licensee during the period of the licence to enter on specified land. It may be authorised to do all things necessary or desirable for the purpose of ascertaining the character and extent value of minerals under the land. In particular, it may make borings, remove samples, et cetera
Certain conditions must be included in prospecting licences. These include an indemnity against claims and demands against the Department arising out of the exercise of the rights and an obligation not to interfere unnecessarily with the amenities of the communities of the locality in which the land and minerals are situated.
Licences may be renewed. The terms of renewals may be provided as the Department determines.
Prospecting Licence holders are required to submit reports and data on their exploration activities to DECC. These reports and data are held confidentially for either six years or until licence surrender, if sooner, after which the data is made publicly available.
Limits & Purpose
The prospecting licence does not entitle the owner to work, sell or dispose of materials and minerals lying under the land. The purpose is to make investigations as to the prospects of working the minerals in due course.
A prospecting licence will terminate on an individual’s death or bankruptcy. When a company is dissolved, a licence vested in it terminates. There are other provisions by which a prospecting licence may be revoked.
The Minister may undertake with the holder of a prospecting licence to grant a mining licence or lease where prospecting has been successful.
A prospecting license permits only that mine be taken, removed and analysed for the purpose of analysis and testing. An owner may prospect for minerals on his own land, provided he may only take reasonable quantities of minerals for the purpose of test and analysis.
Every prospecting licence must contain an indemnity in favour of the Minister. This is usually backed by insurance. A prospecting license must provide that the licensee must not unreasonably or unnecessarily interfere with the amenities of the locality in which land or minerals are subject.
The Minister may revoke a prospecting licence in his discretion. The license will also terminate automatically on certain happenings, such as insolvency or death. In theory, revocation deprives the licensee of all rights under the license without compensation. However, in principle, principles of natural and constitutional justice are likely to be required in respect of revocations.
Licensee Rights & Obligations
A prospecting license allows the licensee to enter land and take steps that are necessary to ascertain the character, nature and extent and valuables of minerals in under the land. He may bore, sink pits and erect shafts. He may remove water from all working and take and remove reasonable quantities of such minerals for analysis, test, trial, or experiment.
The holder of a prospecting license will not necessarily be guaranteed a right to a lease to exploit the minerals themselves. However, the Minister may enter an undertaking with the licensee to the effect that he may enter a mining licence or leasing on terms agreed.
Where damage is occasioned to the surface persons exercising rights under the prospecting licence, the licensee must pay compensation. This is determined by the Mining Board in default of agreement.
Applicants for Prospecting Licences must provide an appropriate exploration programme for the minerals of interest, demonstrate their technical and financial capabilities and agree to licence terms, which include a condition of undertaking work with due regard for the environment.
Petroleum Licence
The Minister may grant licences for petroleum exploration onshore. They are granted on such terms and conditions as he may see fit. See generally the section on offshore petroleum leases. The same broad principles apply in this context, as apply in relation to mines and minerals.
The exploration licence does not entitle a person to enter the land. This must accordingly be agreed upon. Similarly, a licence by itself does not confer a right to a petroleum lease. There is provision for an undertaking on the part of the Minister to grant a petroleum lease.
It is an offence to undertake anything which requires a licence without a licence or in breach of a licence.