Consultation is now open on a review of Queensland’s Financial Provisioning Scheme, which requires mining companies to pay a bond and annual fees to a government fund to cover potential unmet remediation costs.

The State Government said the review would consider whether the scheme struck the right balance between managing financial rehabilitation risks and supporting investment, industry growth and responsible resource development across Queensland.  

Metro Mining chief executive officer and managing director Simon Wensley said the review was welcome news for the industry. 

“Exploration companies and junior and mid-tier miners are crucial to grow Queensland’s mining operations however the FPS can place a disproportionate financial burden on these businesses at a time when capital is most critical to project development and growth,” Mr Wensley said. 

“Funds that could otherwise be invested in exploration, feasibility studies, project development and job creation are tied up in meeting scheme requirements.” 

Natural Resources and Mines Minister Dale Last said consultation would help ensure that the review of the scheme was informed by those at the centre of Queensland’s mining future.  

“I want Queensland to be the epicentre of global critical minerals development and that requires policy settings that work as hard as our industry does, ” he said.  

“The FPS has a significant impact on investment decisions and future development, and I continue to hear firsthand of the limitations it causes for junior miners and explorers.  

“This review presents an opportunity to hear from Queenslanders to ensure our state remains a resources powerhouse while balancing strong environmental safeguards and support for regional communities.”  

Association of Mining and Exploration Companies chief executive officer Warren Pearce encouraged companies to provide feedback during the consultation period.  

“Industry feedback will be critical to ensuring the scheme delivers the right balance between environmental protection and economic growth,” Mr Pearce said.  

“AMEC encourages companies to share their experiences, particularly where FPS settings or rehabilitation surety requirements have affected investment decisions. 

“This review provides an important opportunity to ensure the framework appropriately recognises project maturity, reflects genuine risk and remains competitive with other mining jurisdictions. 

“Queensland’s current FPS settings can place a significant financial burden on smaller operators and developers transitioning from exploration to production.  

“This review is an opportunity to ensure the scheme better reflects risk and project scale, without creating unnecessary barriers to investment, development and job creation in regional Queensland.” 

More information about the review is available at https://www.nrmmrrd.qld.gov.au/mining-exploration/initiatives/financial-provisioning-scheme-review