AG flags Mines and Geology Division for inadequate licensing, monitoring and enforcement of mining and quarrying operations

September 24, 2026

The Auditor General has flagged the Mines and Geology Division for, among other things, inadequate licensing, monitoring and enforcement arrangements of mining and quarrying operations.

This in relation to the period 2019/2020 to 2023/2024.

In its report, the AGD noted that the audit was commissioned to assess whether the Division’s licensing, monitoring and enforcement arrangements were effective in supporting orderly and compliant mining and quarrying operations.

The AGD found that the Division’s regulation of the sector was effective in part.

The Division continued to process applications, conduct inspections, collect revenue and respond to some instances of non-compliance.

However, mining lease renewals were not always supported by key documents and one operator continued mining and six continued quarrying activities after their leases or licenses had expired without evidence of timely enforcement action.

The audit also found that quarry inspections were not guided by a documented risk-based methodology and that enforcement records were incomplete.

Further, as at December 2025, three mine lessees owed penalties totalling $US13.7 million for failing to rehabilitate over 264 hectares of mined-out land.

The Division’s March 2026 schedule identified $US828,000 in royalty principal as well as $US2.58 million in interest and penalties outstanding, from two operators.

In addition, no formal arrangement existed between the Division and the relevant authorities setting out response times, escalation procedures, and notification protocols.

The A-G-D recommended that, as a first step, the Division should implement written pre-approval and renewal checklists for mining leases and quarry licenses.

To protect public revenue and uphold the polluter pays principle, the Division should also adopt a documented risk-based inspection methodology, establish routine royalty and quarry tax reconciliation, enforce rehabilitation obligations using the statutory tools available and formalise coordination arrangements with the relevant authorities.