Balance sought for environmental bonds

The dicey question of mine site rehabilitation will be put to the new LNP Government as one of the outstanding mining issues which needs to be resolved. It comes from the Association of Mining and Exploration Companies (AMEC), whose Queensland director Sarah Gooley has had initial meetings with new Natural Resources and Mines Minister Dale Last and his head of department. Ms Gooley is one of the 600 delegates at the Noosa Mining Investor Conference, which winds up today. AMEC Queensland director Sarah Gooley. AMEC has detailed its unresolved concerns being carried over from the previous Labor Governments. High on the list is the environmental surety otherwise called estimated rehabilitation cost calculator. It’s part of the process of getting an EA or Environmental Authority, which Ms Gooley describes as a calculated rehabilitation cost a proposed mine will have against the anticipated disturbance and impact. “They then punt that over to Queensland Treasury … and they also look at the company and determine what level of risk they pose, and as a result, how they're treated through the financial provisioning scheme. “… most of our members fall into high-risk and so that just means that they have to provide their full surety to the scheme upfront. “If you're an explorer and you have to go through a site-specific EA process (the cost is) up to $250,000 or more. For some of our mining members, it's $36 million and that's money that gets locked up and they have to raise for it. “It's really hard to get potential shareholders to give you money ... that's going to get locked up and sit in the coffers of the Queensland Treasury.“ AMEC recognised the legacy of un-rehabilitated mines throughout the state and the need to have some sort of protection, Ms Gooley said. They were advocating for fit-for-risk legislation, she said. “At the moment we believe that we are being captured in the scheme as if we were a tier-one company and have the same resources to stump up. When most of our members are that emerging industry, the emerging critical minerals and other small players in the space looking at quite boutique minerals. “We feel that if the State's going to support that from a policy perspective, they need to actually get involved in the risk as well. “At the moment, the scheme’s managed for zero-risk by external actuaries, and we really feel that there needs to be a policy shift from the Treasurer down to entertain more of that risk.” AMEC was preparing a brief for the Minister and department head including a scope to provide effective options for both the environment and the members, Ms Gooley said. Image at top of page: Drilling at junior miner Pacgold's Alice River project.

Balance sought for environmental bonds

Industry Queensland

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