❓ Hon Robin Chapple questions the Minister for Mines and Petroleum regarding the Mining Rehabilitation Fund (MRF), focusing on its effectiveness, financial responsibility in cases of company administration, and environmental impact assessment. The Minister responds by outlining the MRF's implementation alongside other environmental reforms, its funding mechanism, and the availability of a risk/benefit analysis report.
AnsweredQoN 478Legislative Council
QuestionView source ↗
MINING REHABILITATION FUND
478. Hon ROBIN CHAPPLE to the minister representing
the Minister for Mines and Petroleum:
I thank the Minister for Agriculture
and Food for bringing to my attention that he was holding a question on my
behalf, which I thought I had asked a month or so ago.
I refer to the replacement of the environmental bond system
with the mining rehabilitation fund as outlined in the minister's media
statement of 4 July 2013 in which he identified the return of the bond money to
Pluton Resources Ltd.
(1) How will the MRF achieve higher standards of mining
rehabilitation and mine closure?
(2) In the
event of a mining company going into administration, who will pay for the
environmental rehabilitation of the mine and associated activities?
(3) Did the
minister investigate the implications for the environment of the new system
before it was implemented?
(4) If no to (3), why not?
(5) If yes to (3), what were the results and will the
minister please table these?
478. Hon ROBIN CHAPPLE to the minister representing
the Minister for Mines and Petroleum:
I thank the Minister for Agriculture
and Food for bringing to my attention that he was holding a question on my
behalf, which I thought I had asked a month or so ago.
I refer to the replacement of the environmental bond system
with the mining rehabilitation fund as outlined in the minister's media
statement of 4 July 2013 in which he identified the return of the bond money to
Pluton Resources Ltd.
(1) How will the MRF achieve higher standards of mining
rehabilitation and mine closure?
(2) In the
event of a mining company going into administration, who will pay for the
environmental rehabilitation of the mine and associated activities?
(3) Did the
minister investigate the implications for the environment of the new system
before it was implemented?
(4) If no to (3), why not?
(5) If yes to (3), what were the results and will the
minister please table these?
AnswerView source ↗
I thank the honourable member for
some notice of the question.
(1) The mining
rehabilitation fund is being implemented in tandem with other environmental
reform activities by the Department of Mines and Petroleum. The 2010 amendments
to the Mining Act 1978 required all mine sites to have approved mine closure
plans in place by 1 July 2014, the date that the MRF becomes compulsory. These
mine closure plans clearly lay out the way in which mine sites will be
rehabilitated prior to closure. The MRF levy payment is based on the extent of
disturbed area on tenements. Once the tenement holder starts rehabilitation
work, the levy payment reduces significantly and once rehabilitation work is
completed, that land no longer attracts a levy. This will encourage early and
staged rehabilitation.
The MRF will also achieve higher
standards of mining rehabilitation as it will provide government with the means
to undertake rehabilitation work when necessary. The environmental bond system,
providing on average only 25 per cent of the cost of rehabilitation, exposed
government to a high liability in the event of a company going under
administration.
(2) Companies
under administration are not eligible to enter the MRF during this voluntary
year. High-risk circumstances, such as being in administration, will continue
to attract bonds into the future. In circumstances in which there is a tenement
forfeiture, the MRF will be used to pay for rehabilitation.
(3) Yes.
(4) Not applicable.
(5) ''Western
Australia's Mining Security System: Preferred Options Paper'',
dated 30 March 2011, provides an analysis of risks and benefits to the
environment of the MRF and the bond system and has been tabled. The report is
also available on the Department of Mines and Petroleum's website.
some notice of the question.
(1) The mining
rehabilitation fund is being implemented in tandem with other environmental
reform activities by the Department of Mines and Petroleum. The 2010 amendments
to the Mining Act 1978 required all mine sites to have approved mine closure
plans in place by 1 July 2014, the date that the MRF becomes compulsory. These
mine closure plans clearly lay out the way in which mine sites will be
rehabilitated prior to closure. The MRF levy payment is based on the extent of
disturbed area on tenements. Once the tenement holder starts rehabilitation
work, the levy payment reduces significantly and once rehabilitation work is
completed, that land no longer attracts a levy. This will encourage early and
staged rehabilitation.
The MRF will also achieve higher
standards of mining rehabilitation as it will provide government with the means
to undertake rehabilitation work when necessary. The environmental bond system,
providing on average only 25 per cent of the cost of rehabilitation, exposed
government to a high liability in the event of a company going under
administration.
(2) Companies
under administration are not eligible to enter the MRF during this voluntary
year. High-risk circumstances, such as being in administration, will continue
to attract bonds into the future. In circumstances in which there is a tenement
forfeiture, the MRF will be used to pay for rehabilitation.
(3) Yes.
(4) Not applicable.
(5) ''Western
Australia's Mining Security System: Preferred Options Paper'',
dated 30 March 2011, provides an analysis of risks and benefits to the
environment of the MRF and the bond system and has been tabled. The report is
also available on the Department of Mines and Petroleum's website.
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