First ever non-cash exploration tenders, as land released in coal rich Bowen Basin

"We’re in the coal business," Queensland Premier Campbell Newman famously quipped.

And now, to emphasise that point, his government is calling for tenders to explore for coal in the resource-rich Bowen Basin in central Queensland.

The minister for Natural Resources and Mines, Andrew Cripps, has announced the first ever non-cash tender for coal exploration at the Mining 2013 Convention in Brisbane.

"The seven areas of land being made available for coal exploration cover more than 1,292 square kilometres in the northern Bowen Basin," Cripps said.

"We understand that a vibrant exploration sector is critical to uncovering the mineral deposits and mines of the future, and non-cash tender processes offer the opportunity for junior explorers to make their mark."

The new framework for permits allows the government to assess and compare potential tenderers to ensure land goes to those best able to explore for potential resources.

Cripps said DNRM officers would assess applications for land based on the competitiveness of the ‘work programs’ submitted by explorers – without a requirement for cash bids.

He said the work programs would establish how and when an exploration company carries out its activities to ensure timely discovery of a prospective deposit.

"Applicants will be assessed according to their proposed work program and the associated technical and financial capability to meet that work program."

Cripps said this tender process represented the first land release for competitive coal tendering since legislative changes allowed them to be allocated via tender as opposed to ‘over-the-counter’ applications. 

"It is crucial that the Queensland Government ensures the best stewardship of the state’s resources into the future," he said.

"Tenders of this type support the next wave of exploration discovery. They ensure that investment practices promote the long-term prosperity of Queensland and our resource industries."

Tender applications can be lodged up until Wednesday, March 5, 2014.