Dáil Éireann díospóireacht -
Tuesday, 12 Mar 1991

Vol. 406 No. 3

Written Answers. - Mining Licence Application.

Michael Finucane

Ceist:

174 Mr. Finucane asked the Minister for Energy if he will outline the process involved in the issuing of a mining licence; if there is a time scale in which the developer has to commence mining; and in cases where the developer does no proceed with the mining, if his Department revokes the licence.

Minister for Energy (Mr. Molloy)

The first stage in an application for a State mining lease is the obtaining of full planning permission for the proposed development together with the appropriate licence under the Water Pollution Acts 1977 to 1990 and the Air Pollution Act, 1987. As part of the planning process an environment impact statement must be submitted. This must be referred by the local authority to my Department for comment in accordance with the Local Government Planning and Development Regulations, 1990 (SI No. 25 of 1990).

It is only when the above permission has been granted that I will consider an application for a mining lease or licence. The applicant must demonstrate to me that: the development is economically viable; he has the necessary financial, technical, environmental and other capabilities which I deem necessary to undertake a successful and acceptable development; insurance bonds will be provided that are sufficient to indemnify me against any third party claims arising from the development and to cover the cost of restoring the site in the event of the developer failing to do so.

I also require that an environmental impact assessment be carried out by an independent expert acceptable to my Department.

If the applicant complies with all of the above I will make an offer in principle of a lease subject to the provisions of section 18 of the Minerals Development Act, 1979. (This section provides, first, for public notice of the Minister's intention to grant a lease and, secondly, public notice to any person entitled to any estate or interest in the minerals to claim compensation). The offer incorporates the principal conditions on which I am prepared to grant a lease viz: the duration of the lease, the return to the State (i.e. dead rent, royalites etc.) environmental conditions, insurance cover, costs to be borne by the developer and processing fee. On acceptance of the offer and following compliance with the provisions of section 18 of the Act including the consideration of any objections received, a draft State mining lease, or licence as is appropriate, incorporating all conditions is agreed with the applicant, finalised, signed and issued.

A State mining lease provides for a minimum period in each year from the date of commencement of the lease within which the demised minerals must be worked. This has the effect of requiring that mining commences within a specified period following the grant of the lease. A forfeiture clause is also included in the event of failure by the developer to comply with the terms and conditions of the lease. In a situation where a lessee fails to undertake the development of the demised minerals or does not work them for the full required period during any particular year, the revoking of the lease is an option available to me.