❓ The Minister for Mines and Petroleum outlines the establishment of the Mining Rehabilitation Fund to address the cost liability of abandoned mines, improve environmental outcomes, and reduce red tape for mining companies by replacing environmental bonds with a pooled fund.
AnsweredQoN 92Legislative Assembly
QuestionView source ↗
MINING REHABILITATION FUND
92. Ms W.M. DUNCAN to the
Minister for Mines and Petroleum:
Can the minister please update the house on how Western
Australia is leading the way in reducing the cost liability of abandoned mines
to the community?
92. Ms W.M. DUNCAN to the
Minister for Mines and Petroleum:
Can the minister please update the house on how Western
Australia is leading the way in reducing the cost liability of abandoned mines
to the community?
AnswerView source ↗
Another very good question from the member for Kalgoorlie who
I know in her electorate has many abandoned mines.
Mr B.S. Wyatt :
Minds or mines?
Mr W.R. MARMION :
Mines—mine shafts. The way the system currently works is that mine
rehabilitation is managed by the department through an environmental bond
system. Basically, the protection against a company not meeting its
rehabilitation responsibilities is tied up in a bank-guaranteed bond. This
system has its shortcomings. Firstly, the total amount of bonds represents only 25 per cent of the rehabilitation
costs of the mines in operation in WA. Also, they apply only to specific
mines, so if there is an
abandoned mine, we cannot rehabilitate that. Of course, the obvious shortcoming
is that it ties up a lot of capital funds that could be better utilised, as the
member for Kalgoorlie would know, in developing mines.
This is a win for reducing red tape,
it is a win for mining companies and it is a win for the environment. To
improve the system w e are
introducing a mining rehabilitation fund. The new mining rehabilitation fund
will provide a pooled fund, which will be raised through a mining levy, that
will be drawn on in the event that operators do not meet their closure and rehabilitation
obligations. The new levy does not diminish the responsibilities of mining
companies to meet their environmental obligations. This has been developed in consultation with both
industry and environmental groups and has broad support. Through the Mining
Rehabilitation Fund Act, which was passed in late 2012, operators from July
this year will be able to voluntarily contribute to the scheme 12 months before
it becomes compulsory. They will be able to relinquish their bonds and free up that capital for investment in the mining
industry.
There has been quite a lot of interest and a lot of mining
companies are ready to roll on 1 July this year. But the important thing is
that the interest earned on the fund will be available to the state to manage
and rehabilitate historic and abandoned mines. This will lead to better
community safety and environmental outcomes for the whole state. For the first
time in Western Australia a perpetual fund has been established to fund the
rehabilitation of historic abandoned mine sites that pose a safety risks to
both people and the environment.
I know in her electorate has many abandoned mines.
Mr B.S. Wyatt :
Minds or mines?
Mr W.R. MARMION :
Mines—mine shafts. The way the system currently works is that mine
rehabilitation is managed by the department through an environmental bond
system. Basically, the protection against a company not meeting its
rehabilitation responsibilities is tied up in a bank-guaranteed bond. This
system has its shortcomings. Firstly, the total amount of bonds represents only 25 per cent of the rehabilitation
costs of the mines in operation in WA. Also, they apply only to specific
mines, so if there is an
abandoned mine, we cannot rehabilitate that. Of course, the obvious shortcoming
is that it ties up a lot of capital funds that could be better utilised, as the
member for Kalgoorlie would know, in developing mines.
This is a win for reducing red tape,
it is a win for mining companies and it is a win for the environment. To
improve the system w e are
introducing a mining rehabilitation fund. The new mining rehabilitation fund
will provide a pooled fund, which will be raised through a mining levy, that
will be drawn on in the event that operators do not meet their closure and rehabilitation
obligations. The new levy does not diminish the responsibilities of mining
companies to meet their environmental obligations. This has been developed in consultation with both
industry and environmental groups and has broad support. Through the Mining
Rehabilitation Fund Act, which was passed in late 2012, operators from July
this year will be able to voluntarily contribute to the scheme 12 months before
it becomes compulsory. They will be able to relinquish their bonds and free up that capital for investment in the mining
industry.
There has been quite a lot of interest and a lot of mining
companies are ready to roll on 1 July this year. But the important thing is
that the interest earned on the fund will be available to the state to manage
and rehabilitate historic and abandoned mines. This will lead to better
community safety and environmental outcomes for the whole state. For the first
time in Western Australia a perpetual fund has been established to fund the
rehabilitation of historic abandoned mine sites that pose a safety risks to
both people and the environment.
Explore WA Government Data
Search the full archive in the free dashboard, or query programmatically via API.
Explore more
Government Gazette
Appointments, regulatory notices, planning changes.
Hansard
Debates, questions, speeches and sentiment.
Tabled Papers
Reports and documents tabled in Parliament.
Committees
Committee profiles and recent reports.
Regulations
Subsidiary legislation with filters and summaries.
Bills
Proposed laws and parliamentary progress.
Acts
Current WA legislation and summaries.
Explanatory Memoranda
Bills with EMs (text/PDF) available.
Members
MP profiles, party breakdown and rankings.
Pollie Rankings
Data-driven rankings across 19 categories.
Amendment Chains
Track how schemes and regulations evolve over time.