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Crown Minerals Act 1991

Permits, access to land, and other matters - Permits, access to land, and title notations - Changes to permits

41B: Dealings

You could also call this:

"Agreements about selling or making money from minerals"

Illustration for Crown Minerals Act 1991

If you have a permit to explore or use minerals, you can enter into a dealing. A dealing is an agreement that affects how you sell or get money from what you produce. You need to get consent from the Minister if your dealing is for a Tier 1 permit.

When you apply for consent, you must send it to the Minister within three months of making the agreement. You also need to include a copy of the agreement with your application. The Minister will look at your application to decide if they consent to your dealing.

A dealing can be any agreement that is not a transfer of a participating interest, or a mortgage or other charge. It must be an agreement that a reasonable person would think is not fair or not made on a normal business basis, or it must be for 12 months or longer. You can find more information about the rules for dealings in the Crown Minerals Amendment Act 2013.

If you have a Tier 1 permit and the Minister does not consent to your dealing, it has no legal effect. This means it is not valid and you cannot use it. You should make sure you follow the rules for dealings to avoid any problems.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM5230466.

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"Tell the Minister if a company guaranteeing your permit changes owners"

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41C: Change of permit operator, or

"Changing who runs a mining or drilling project needs the Minister's approval first"

Part 1BPermits, access to land, and other matters
Permits, access to land, and title notations: Changes to permits

41BDealings

  1. A permit participant may enter into a dealing.

  2. However, the dealing has no legal effect if the dealing relates to a Tier 1 permit and the Minister does not consent to the dealing.

  3. An application for consent to a dealing must—

  4. be made to the Minister; and
    1. be made within 3 months after the date of the agreement that contains the dealing; and
      1. be accompanied by a copy of the agreement that contains the dealing.

        1. In this section, dealing means any agreement (other than a transfer of a participating interest, or a mortgage or other charge) that imposes on any permit participant any obligation that relates to the sale or the proceeds of production, if—

        2. a reasonable person would consider that the agreement—
          1. has not been entered into on an arm’s-length basis; or
            1. is not on arm’s-length terms; or
              1. is otherwise not on a fair market basis; or
              2. the term of the agreement is for 12 months or longer.

                Notes
                • Section 41B: inserted, on , by section 33 of the Crown Minerals Amendment Act 2013 (2013 No 14).