❓ Hon Paul Llewellyn questions the Minister for the Environment regarding the lack of financial assurance imposed on KCGM's Fimiston I tailings dam, despite potential environmental liabilities. The Minister responds that a comprehensive policy framework is needed before applying financial assurances.
AnsweredQoN 3222Legislative Council
QuestionView source ↗
I refer to the Fimiston I tailings dam owned by Barrick Gold and Newmont Mining, operated by Kalgoorlie Consolidated Gold Mines Pty Ltd (KCGM) -
(1) Given that the Ministers determination dated January 2005 stated ‘I have requested that the DoE investigate the potential for the application of a financial assurance in KCGM’s operating licence as an additional statutory control’, can the Minister explain why the DoE after having over eight months to investigate this, decided not to include a financial assurance in the licence reissued on Friday, September 30 2005?
(2) If no to (1), why not?
(3) Given that it has been identified from an internal KCGM document that the final closure cost for the superpit mine has been estimated between 93 and 115 million dollars with a large amount of this post closure cost being 34.6 million dollars to 47.8 million dollars which is highly sensitive to the continued cost of dewatering around the tailings storage facilities, will the Minister urgently request that the DoE set and apply a financial assurance so that taxpayers of Western Australia are not exposed to a sub surface liability of seepage generated by KCGM?
(4) If no to (3), why not?
(1) Given that the Ministers determination dated January 2005 stated ‘I have requested that the DoE investigate the potential for the application of a financial assurance in KCGM’s operating licence as an additional statutory control’, can the Minister explain why the DoE after having over eight months to investigate this, decided not to include a financial assurance in the licence reissued on Friday, September 30 2005?
(2) If no to (1), why not?
(3) Given that it has been identified from an internal KCGM document that the final closure cost for the superpit mine has been estimated between 93 and 115 million dollars with a large amount of this post closure cost being 34.6 million dollars to 47.8 million dollars which is highly sensitive to the continued cost of dewatering around the tailings storage facilities, will the Minister urgently request that the DoE set and apply a financial assurance so that taxpayers of Western Australia are not exposed to a sub surface liability of seepage generated by KCGM?
(4) If no to (3), why not?
AnswerView source ↗
Answered
14 March 2006
Responded by
Minister for Education and Training representing the Minister for the Environment
Response time
103 days
(1) The application of financial assurances in DoE licences is a highly complex issue which requires careful consideration before application. The power to impose financial assurances was only added to the Environmental Protection Act 1986 in 2003, it is important that an appropriate policy, legal, financial and administrative framework is put in place before applying these to any particular premises. The DoE has commenced discussions with the Chamber of Industry and Resources, the Chamber of Minerals and Energy and the Conservation Council and intends to develop a policy and implementation framework on this matter in 2006. Only then would it be appropriate to set a specific requirement on KCGM or any other operation. (2) Not applicable. (3) See answer to (1), and also note that some of the issues raised in this question may be addressed through the financial assurance system operated by the Department of Industry and Resources. While recognising the large potential closure costs at the superpit, the DoE does not consider that there is any urgency at this time to impose a financial assurance on KCGM ahead of developing an appropriate policy position and administrative system. (4) Not applicable.
(2) Not applicable. (3) See answer to (1), and also note that some of the issues raised in this question may be addressed through the financial assurance system operated by the Department of Industry and Resources. While recognising the large potential closure costs at the superpit, the DoE does not consider that there is any urgency at this time to impose a financial assurance on KCGM ahead of developing an appropriate policy position and administrative system. (4) Not applicable.
(3) See answer to (1), and also note that some of the issues raised in this question may be addressed through the financial assurance system operated by the Department of Industry and Resources. While recognising the large potential closure costs at the superpit, the DoE does not consider that there is any urgency at this time to impose a financial assurance on KCGM ahead of developing an appropriate policy position and administrative system. (4) Not applicable.
(4) Not applicable.
(2) Not applicable. (3) See answer to (1), and also note that some of the issues raised in this question may be addressed through the financial assurance system operated by the Department of Industry and Resources. While recognising the large potential closure costs at the superpit, the DoE does not consider that there is any urgency at this time to impose a financial assurance on KCGM ahead of developing an appropriate policy position and administrative system. (4) Not applicable.
(3) See answer to (1), and also note that some of the issues raised in this question may be addressed through the financial assurance system operated by the Department of Industry and Resources. While recognising the large potential closure costs at the superpit, the DoE does not consider that there is any urgency at this time to impose a financial assurance on KCGM ahead of developing an appropriate policy position and administrative system. (4) Not applicable.
(4) Not applicable.
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.