A general introduction to Mining Law in Australia

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Introduction

Government policy is generally geared towards fostering a framework in which growth in the mining sector can be encouraged, recognising the critical role mining plays in Australia's overall economic growth and the fact that Australia holds some of the world's largest resources of gold, iron ore, lithium, nickel, uranium and zinc.¹ This trend has been accelerated by the international strategic interest in Australia's natural resources endowment, particularly in relation to the mining and processing of critical minerals and rare-earths, as reflected in the landmark United States–Australia Framework for Securing of Supply in the Mining and Processing of Critical Minerals and Rare Earths announced in October 2025, as well as the Joint Declaration of Intent on Critical Minerals Collaboration signed between the Governments of Australia and Canada on 1 November 2025.

Australia also has a significant mining equipment, technology and services sector, supporting the local mining industry and is increasingly exporting its world-leading expertise in the identification, development and operation of mining projects to jurisdictions around the world, via the significant number of mining and exploration companies that have an Australian head office or Australian Securities Exchange (ASX) listing.

Australia is a leading jurisdiction for exploration, development and operation of critical and battery minerals projects, having a number of world-class lithium, critical minerals and rare-earths projects, with a number of these projects at the exploration and development phase.

Australia is a federal constitutional monarchy under a parliamentary democracy, formed in 1901 as a result of an agreement among six self-governing British colonies, which became the six states (and which later included three self-governing territories). The head of state is King Charles III, who is represented by the Governor-General. The King appoints the Governor-General on the advice of the Prime Minister of Australia but has no active role in the day-to-day operations of government. Australia's Constitution establishes a centralised federal government (known as the Commonwealth government) and various state and territory governments. The Constitution also reserves exclusive responsibility for certain matters (i.e., trade, commerce and defence) to the Commonwealth government, and allocates law-making responsibilities among the Commonwealth and the states and territories.

In relation to minerals ownership, the default legal position is that all title to minerals is vested in the state or territory in which they are located. The legal framework around the development of mining projects is, therefore, generally governed by the mining laws of the various states and territories; however, the commissioning of a mining project will require compliance with a range of Commonwealth laws (environmental, employment, foreign ownership and native title) and certain state and territory laws (i.e., resource royalty obligations and stamp duty).

The current federal government, led by the Australian Labor Party, was re-elected in May 2025. Federal governments in Australia have three-year maximum terms before another election must occur, meaning the next federal election must occur no later than May 2028.

Government policy at all levels aims to provide a relatively well-defined system of laws and procedures governing the development of mining projects, and a proactive foreign investment regime. Regardless of political persuasion, all governments are aware that a favourable foreign investment culture provides impetus for the funding of large-scale mining projects. In this regard, whilst Australia has consistently ranked in the top echelon of leading 'inward-investment' destinations according to the Fraser Institute's Annual Survey of Mining Companies, a range of factors led to a fall in Australia's ranking (relative to other jurisdictions) in 2025.²

This decrease in investment attractiveness (relative to previous periods and other jurisdictions) is reflective of ongoing feedback from industry participants regarding the time frame and pathways for obtaining land access and mining approvals (although this is an issue common to a number of developed countries), which has been an area of focus and potential reform in the period since the survey was undertaken.³