New Change-Of-Control Rules For Queensland Resource Tenements

The Mineral and Energy Resources and Other Legislation Amendment Act 2020 (Qld) (MEROLA) will introduce new rules applying to the transfer of resource tenements and the change of control of a resource tenement holder.

New criteria for deciding whether to approve 'direct changes of control'

A 'direct change of control' of a resource tenement (such as a mining or petroleum lease) occurs where the resource tenement (or an interest in the resource tenement) is transferred from the existing holder to a new holder. This commonly occurs in an asset sale transaction where the resource tenement is directly transferred from the seller to the buyer.

Under the Mineral and Energy Resources (Common Provisions) Act 2014 (Qld), the transfer of a resource tenement (or an interest in a resource tenement) is an "assessable transfer" which requires approval by the Minister (subject to limited exceptions). In deciding whether to approve an assessable transfer, the Minister is