May 4, 2017
The State Government plans to introduce major reforms to mine rehabilitation laws in 2018 to prevent mining companies avoiding their obligations to rehabilitate their sites.
Treasurer Curtis Pitt outlined the proposed reforms on Thursday.
He said they were the most significant upgrade to the state’s multi-billion dollar resources sector financial assurance and rehabilitation framework in nearly 20 years.
The package of reforms includes:
- A redesigned financial assurance framework based on the size and level of risk of mining operators
- Pooling financial assurance from mining companies into an interest-earning, multi-million dollar rehabilitation fund
- More options – such as insurance bonds – to make it easier for miners to provide their financial assurances
- More funds to rehabilitate abandoned mines
- Measures to ensure mined land is rehabilitated progressively rather than toward the end of a mine’s life
- Regular checks and reporting on progressive rehabilitation
- Better planning for rehabilitation and regular monitoring and reporting
- More realistic calculation of rehabilitation costs and a phasing out 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,” Mr Pitt said.
“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.”
The proposed reforms follow an independent review last year on the existing financial assurance framework.
The first of several discussion papers underpinning the reform proposals was released on Thursday and will be open for consultation until June 15.
The remaining discussion papers will be released over the coming year, with the new framework planned to be in place by mid-2018.
- External link: Better Mine Rehabilitation for Queensland discussion paper
