Answer ... Mining in the United Kingdom is governed primarily according to mineral type and the particular aspect of mining activity. There is no overarching or unified regulatory regime in the form of a general mining and minerals act, as is the case in many other jurisdictions.
In broad terms, regulation can be categorised according to specific minerals as follows:
- gold and silver;
- coal;
- oil and gas; and
- other minerals.
Gold and silver: Under common law, gold and silver are the property of the Crown. Gold and silver mines constitute ‘Mines Royal’, originating from the Inclosure Awards and Acts of the early nineteenth century.
Mining of gold and silver in the United Kingdom is regulated by the Crown Estate who grant exclusive options to take a lease of these minerals for a specific area. Such leases are obtained from Wardell Armstrong LLP, the Crown Estate Mineral Agent.
Removing gold in any form requires the permission of the Crown Estate, as well as the need for rights of access from the owner of the surface of the land. The option is in a standard form and is for a one-year period (two in Northern Ireland).
Coal: Mining of coal in the United Kingdom is regulated by the Coal Authority – an executive, non-departmental public body, sponsored by the Department for Business, Energy and Industrial Strategy (BEIS). The Coal Authority owns the vast majority of unworked coal and coal mines (courtesy of the Coal Industry Act). The Coal Authority’s responsibilities include, among others, the licensing of coal mining operations in the United Kingdom and the administering of coal mining subsidence damage claims.
Oil and gas: Under the Petroleum Act 1998 and the Continental Shelf Act 1964, oil and gas (including onshore and in territorial waters and the United Kingdom Continental Shelf) is owned by the Crown.
A licence is required to conduct onshore exploration, which grants exclusive rights to exploit for and develop oil and gas onshore within Great Britain. However, the rights granted under these licences do not include rights of access, and the licensees must also obtain any consent under current legislation, including planning permissions.
The Oil and Gas Authority is a government company limited by shares with the secretary of state for BEIS as the sole shareholder. It is responsible for the regulation of offshore and onshore oil and gas operations in the United Kingdom, including licensing, exploration and production, and oil and gas infrastructure.
Other minerals: Generally, the rights to other minerals in the United Kingdom (with the exception of Northern Ireland – see below) belong to the particular landowner (which is held to own everything beneath the surface of their land down to the centre of the earth). Details of minerals held in private ownership are held at the Land Registry.
There is no United Kingdom licencing system for mineral extraction and exploration, but planning permission must be obtained from a mineral planning authority for the extraction of minerals. In addition, numerous environmental consents and safety systems must be in place in order to conduct any specific mining operation.
In Northern Ireland, the Mineral Development Act (Northern Ireland) 1969 vested most minerals in Northern Ireland in the Department of the Economy. The Department of the Economy can grant prospecting and mining licences to companies for the exploration and development of minerals. There are three main exceptions:
- gold and silver;
- minerals which were being worked at the time of the 1969 Act; and
- ‘common’ substances (including aggregates, sand and gravel).