Western Australia (WA): minimum expenditure for exploration licences
A Western Australian exploration licence must spend a minimum amount per block each year, rising with the licence's age: $1,000 per block in years 1–3, $1,500 in years 4–5, $2,000 in years 6–7 and $3,000 from year 8, with a minimum per licence that depends on its size. Spend is reported on Form 5 within 60 days after each grant anniversary.
Checked against the regulator's guidance and the legislation on 25 September 2026. General information, not legal advice. Rules and fees change, and your licence conditions take priority, so confirm with the regulator before relying on a figure.
- Titles
- Exploration licence (EL), prospecting licence (PL) and retention licence (RL)
- Regulator
- Department of Mines, Petroleum and Exploration (DMPE), formerly DEMIRS
- Legislation
- Mining Act 1978 and Mining Regulations 1981
How the minimum is calculated
- For a block-based (graticular) exploration licence, which covers almost every current EL, the annual minimum is a rate per block with a minimum per licence (Mining Regulations r.21(1b)). A block counts in full if any part of it is in the licence.
- The expenditure year runs from each anniversary of the grant date. Spend in the anniversary month can be counted in either year.
- The commitment is reduced pro rata after a partial surrender, and no expenditure is required after the year in which retention status is approved.
- Prospecting licences: $40 per hectare a year, at least $2,000. Retention licences have no per-area formula; expenditure conditions or a programme of work may be set instead.
| Licence year | Per block | Minimum: 1 block | 2–5 blocks | 6+ blocks |
|---|---|---|---|---|
| 1–3 | $1,000 | $10,000 | $15,000 | $20,000 |
| 4–5 | $1,500 | $10,000 | $20,000 | $30,000 |
| 6–7 | $2,000 | $15,000 | $30,000 | $50,000 |
| 8+ | $3,000 | $20,000 | $50,000 | $70,000 |
Reporting and deadlines
| Report | Due | Lodged via |
|---|---|---|
| Form 5 Operations Report – Expenditure on Mining Tenement | Within 60 days after each grant anniversary, and within 60 days after surrender, forfeiture or expiry | Mineral Titles Online (MTO), in person or by post |
What counts as expenditure
- Exploration work on the licence, including the holder's own labour
- Aboriginal heritage surveys (including application-stage surveys, which count toward year 1)
- Rehabilitation, annual rent and local government rates
- Aerial surveys, apportioned across the tenements covered
- Administration and land access costs, capped at 20% of the minimum commitment or 20% of total spend, whichever is greater
Doesn't count
- Marking out
- Buying or selling tenements
- Research not tied to a specific tenement
- Compensation payments
Exemptions and variations
- Apply for an exemption on Form 18, before the end of the expenditure year or within 60 days after it, with a statutory declaration within 28 days. The fee is $591 for an EL (from 1 July 2026). Applications are published and can be objected to.
- Grounds under section 102 include: title in dispute; time needed to evaluate, plan or raise capital; ground unworkable; deposit uneconomic; political, environmental or approvals difficulties; and combined-reporting group spend. The Minister can also accept any other sufficient reason.
- Retention licences can't apply for an exemption.
What happens if you fall short
- Missing the expenditure condition, or not lodging required reports, makes the licence liable to forfeiture.
- The Minister can forfeit the licence or, instead, impose a fine of up to $150,000 for a company ($75,000 for an individual). The licence is forfeited if the fine isn't paid within 30 days.
- Any person can apply for forfeiture (a plaint) during the expenditure year or up to 8 months after it. The warden can recommend forfeiture, impose a fine of up to $10,000, or dismiss the application.
Term, renewal and relinquishment
- An EL's first term is 5 years. It can be extended once by 5 years, then by further 2-year periods. It stays in force while an extension application is pending.
- If the term has been extended, an EL of more than 10 blocks must give up 40% of its blocks by the 6th anniversary of grant, unless retention status has been approved.
- Tenements approved for combined reporting report together under one combined reporting number, and group spend can support an exemption.
Recent changes
- The department was renamed the Department of Mines, Petroleum and Exploration on 1 July 2025. Older guidance calls it DEMIRS or DMIRS.
- The expenditure rates themselves haven't changed since 2006.
- The Mining Amendment Bill 2025, introduced in June 2025, proposes to consolidate the forfeiture and exemption provisions. Check its status before relying on the process above.
Sources
Tracking this across several tenements
Tenement Track keeps each tenement's commitment, spend to date and anniversary date in one register, so a shortfall shows up while there's still time to act on it.