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Queensland unveils mine rehabilitation reforms

Queensland unveils mine rehabilitation reforms

Photo by Bloomberg

5th May 2017

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – The Association of Mining and Exploration Companies (Amec) has welcomed the Queensland government’s proposed reforms on mine rehabilitation and financial bonds for mines.

The proposed reforms are the most significant upgrades to the resource sector’s financial assurance and rehabilitation framework in nearly 20 years.

The package of reforms includes a redesigned financial assurance framework tailored to operators based on their size and level of risk, pooling financial assurance from mining companies into an interest-earning multimillion-dollar rehabilitation fund, and more options, such as insurance bonds, to make it easier for miners to provide their financial assurances.

More funds to rehabilitate abandoned mines will also be made available, while measures will be introduced to ensure mined land is rehabilitated progressively rather than toward the end of a mine’s life. Regular checks and reporting on progressive rehabilitation and better planning for rehabilitation, and regular monitoring and reporting, will also be implemented, along with more realistic calculation of rehabilitation costs and a phase-out of discounts on financial assurances for miners.

Treasurer Curtis Pitt said the reform package was innovative and struck the right balance between environmental sustainability and the resources sector.

“We recognise the need to mitigate the financial risk to taxpayers if a mining company cannot fulfil its rehabilitation and environmental obligations and balance that by ensuring we don’t create a major cost barrier for the resources sector.

“Government uses the financial assurances miners provide as a last resort when a resource company doesn’t meet its rehabilitation and environmental obligations.

“We’ve got to get it right to better protect our state and our communities now and into the future by striking the right balance between the environmental challenges associated with mining activities and the economic opportunities and jobs this sector creates for Queensland.”

State Development and Natural Resources and Mines Minister Dr Anthony Lynham said the proposed reforms would benefit companies that play according to the rules.

“The new regime recognises that not all operators are the same, in size and risk, and the new package of reforms will reflect this,” he said.

“Importantly, pooling financial assurances and partnering with the big players will generate more funds to expand our rehabilitation of abandoned mines, a legacy the government manages.

“It will also help drive more rehabilitation research and development to assist the resource industry boost its rehab performance.”

Environment and Heritage Protection Minister Steven Miles said the reform would also improve progressive rehabilitation and require rehabilitated mine sites to be suitable for another land use post-mining.

“Companies will be required to report self-assessments publicly, face regular checks by the regulator as well as audits every three-to-five years.

“Life-of-mine plans will set out clear and enforceable completion requirements, giving communities confidence about how companies will meet those goals. But there are also currently thousands of abandoned mines in Queensland and we want to create a new industry around cleaning these sites up,” Miles said.

Amec CEO Simon Bennison said the proposed reforms could lower the cost of doing business in Queensland.

“The Western Australian Mining Rehabilitation Fund (MRF) has been a success, with over a billion dollars of bonds returned to industry, freeing up cash for investment, exploration and jobs.”

Bennison pointed out that the 2015/16 financial year was the MRF’s third full year of operation, following an initial voluntary year.

Compliance with reporting requirements was nearly universal and the total contributions received over the financial year brought the total principal in the fund to about A$60-million forecast to rise to A$90-million by June 2017.

“Using the interest from the MRF, Western Australia has been able to begin rehabilitation on two legacy sites that were a risk to their respective communities.

“Queensland has the opportunity to create a pooled financial assurance fund that can act as “a fund of last resort”.”

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

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