❓ Question regarding Minara Resources' environmental bond for the Murrin Murrin operation, specifically concerning alternative security arrangements and the current form of the bond. The Minister details a temporary bond reduction during the GFC to prevent project closure and job losses.
AnsweredQoN 144Legislative Council
QuestionView source ↗
MINARA RESOURCES — ENVIRONMENTAL
BOND
144. Hon JON FORD to the Minister for Mines and Petroleum:
I refer to the environmental bond provided to the government
by Minara Resources for their Murrin Murrin operation.
(1) Did Minara
have a series of meetings with the minister, his staff and department officials
in late 2008 and early 2009 at which they sought an alternative security
arrangement to that of the traditional bank guarantee on the environmental bond
for Minara's Murrin Murrin operation?
(2) If yes to (1), what was the
alternative arrangement and was it accepted by the minister?
(3) What form of
environmental bond has now been put in place to meet Minara's
environmental obligations?
BOND
144. Hon JON FORD to the Minister for Mines and Petroleum:
I refer to the environmental bond provided to the government
by Minara Resources for their Murrin Murrin operation.
(1) Did Minara
have a series of meetings with the minister, his staff and department officials
in late 2008 and early 2009 at which they sought an alternative security
arrangement to that of the traditional bank guarantee on the environmental bond
for Minara's Murrin Murrin operation?
(2) If yes to (1), what was the
alternative arrangement and was it accepted by the minister?
(3) What form of
environmental bond has now been put in place to meet Minara's
environmental obligations?
AnswerView source ↗
I thank the member for some notice of this question.
(1) Yes.
(2) With
cabinet endorsement, I approved under the Mining Act 1978 a temporary
reduction, for an 18-month period expiring on 31 December 2010, of the
environmental bond requirement for the Murrin Murrin nickel project for the
purpose of reducing Minara's bond requirement over that period from
$26.5 million to zero. The remaining environmental bond liability for the
Murrin Murrin project of about $17.7 million accrued to Glencore and remained
in force.
This decision was taken at the
height of the global financial crisis, when the nickel price had collapsed and
this project was facing imminent closure because of demands from financial
institutions that Minara underwrite its bond with cash. Minara's past
record of excellent environmental management on this project was an important
factor supporting this decision, which enabled the project to remain in
operation and avoid the significant job losses that would have resulted from
its closure.
(3) The
project now has unconditional performance bonds lodged against all the relevant
mining tenements.
(1) Yes.
(2) With
cabinet endorsement, I approved under the Mining Act 1978 a temporary
reduction, for an 18-month period expiring on 31 December 2010, of the
environmental bond requirement for the Murrin Murrin nickel project for the
purpose of reducing Minara's bond requirement over that period from
$26.5 million to zero. The remaining environmental bond liability for the
Murrin Murrin project of about $17.7 million accrued to Glencore and remained
in force.
This decision was taken at the
height of the global financial crisis, when the nickel price had collapsed and
this project was facing imminent closure because of demands from financial
institutions that Minara underwrite its bond with cash. Minara's past
record of excellent environmental management on this project was an important
factor supporting this decision, which enabled the project to remain in
operation and avoid the significant job losses that would have resulted from
its closure.
(3) The
project now has unconditional performance bonds lodged against all the relevant
mining tenements.
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