The long-awaited notice extending the transitional timeframe for compliance with the Financial Provisioning Regulations of 2015 has been published by Environment, Forestry and Fisheries Minister Barbara Creecy.
In terms of the extension notice, the applicable Mineral and Petroleum Resources Development Act (MPRDA) rightsholders now have until June 19, 2021, to comply with the regulations.
Until then, they will be regarded as having complied with the regulations, if compliant with the financial provisioning requirements applicable under the approved MPRDA right.
“The extension notice will no doubt be a welcome relief for the cash-stricken mining industry and will further allow the required time for the supporting legislative developments to be finalised, such as the revived National Environmental Management Laws Amendment Bill and the split of petroleum resource regulation from the MPRDA,” law firm Webber Wentzel says.
The law firm expects a third draft of the replacement financial provisioning regulations to be published this year for a further round of consultation.