Mineral and Energy Resources (Financial Provisioning) Bill 2018
Plain English Summary
Overview
This bill establishes a Financial Provisioning Scheme to protect Queensland from the cost of cleaning up mine sites when resource companies fail to rehabilitate the land. It replaces the old individual financial assurance system with a pooled fund model, where companies pay annual contributions based on their risk level, and introduces enforceable Progressive Rehabilitation and Closure Plans to ensure mined land is progressively restored throughout the life of a mine.
Who it affects
Mining and resource companies must pay into the fund and develop enforceable rehabilitation plans with time-based milestones. Queensland taxpayers and regional communities gain greater protection from the financial and environmental costs of abandoned or poorly rehabilitated mine sites.
Key changes
- Creates a Financial Provisioning Fund — a pooled fund replacing individual financial assurance, with companies paying annual contributions based on risk category (very low, low, moderate, or high)
- Introduces Progressive Rehabilitation and Closure Plans (PRC plans) requiring mines to set enforceable milestones for progressively rehabilitating mined land to approved post-mining land uses
- Bans leaving mine voids in floodplains — all voids in floodplains must be rehabilitated to a safe, stable condition before surrender
- Requires independent audits of rehabilitation progress every three years, with audit reports informing potential amendments to rehabilitation schedules
- Provides a source of funds for rehabilitating legacy abandoned mines, abandoned operating sites, and research into rehabilitation techniques
- Allocates $39.4 million over five years for implementation, to be recovered from scheme participants
Bill Story
The journey of this bill through Parliament, including debate and recorded votes.
▸Committee15 Feb 2018View Hansard
Referred to Economics and Governance Committee
The Economics and Governance Committee examined the Mineral and Energy Resources (Financial Provisioning) Bill 2018, receiving 51 submissions and holding a public briefing and public hearing. The committee unanimously recommended that the bill be passed, noting broad stakeholder support for the reform objectives while acknowledging concerns about the lack of operational detail for the new financial provisioning scheme. The committee also recommended that clause 173 be amended to correct a minor drafting error (replacing 'annual report' with 'annual return'), which the government accepted.
Key findings (5)
- The majority of stakeholders supported the reform objectives, including the new pooled financial provisioning fund and progressive rehabilitation requirements, though many raised concerns about insufficient detail on how the scheme would operate in practice
- Industry stakeholders, particularly in the petroleum and gas sector, raised concerns about potential cost increases under the new scheme, with some requesting the ability to opt out of the pooled fund
- Environmental and community groups strongly supported progressive rehabilitation reforms but expressed concern that non-use management areas could be used as a loophole to avoid full mine site rehabilitation
- The Queensland Law Society and several industry bodies criticised the absence of merits review rights for scheme manager decisions, arguing that judicial review alone was insufficient for a brand-new regulatory framework
- The Office of the Information Commissioner objected to blanket exclusions from the Right to Information Act for scheme manager documents, arguing these were inconsistent with recent government policy on open access
Recommendations (2)
- The committee recommends the Mineral and Energy Resources (Financial Provisioning) Bill 2018 be passed.
- The committee recommends clause 173 of the Mineral and Energy Resources (Financial Provisioning) Bill 2018 be amended to correct a minor drafting error.
Committee report tabled
▸Second Reading14 Nov 2018View Hansard
Vote on a motion
A procedural motion related to the bill's consideration, defeated 41-47 with the opposition and crossbench voting against the government.
The motion was rejected.
A formal vote on whether to accept a proposal — this could be the bill itself, an amendment, or another motion.
▸Show individual votesHide individual votes
Ayes (41)
Noes (47)
▸14 members spoke12 support2 mixed
As Deputy Premier and Treasurer, moved the second reading and led the bill through the House, describing it as the most significant upgrade to Queensland's financial assurance and rehabilitation framework in nearly 20 years.
“These groundbreaking reforms strike the right balance for the environment and the resources sector while ensuring resource companies, not Queensland taxpayers, foot the bill for the rehabilitation of failed mines or stranded assets.”— 2018-11-14View Hansard
Supported the bill as the right framework going forward but criticised the government's attempt to create blanket RTI exclusions and the poor process of introducing over 60 amendments bypassing the committee.
“We believe that the framework that is included in this bill is the right one going forward and one that we considered when we were in government.”— 2018-11-14View Hansard
Spoke in support of the bill, emphasising the importance of mine rehabilitation for maintaining the industry's social licence and protecting Queensland taxpayers.
“This bill puts forward a new system of financial assurance that gives greater confidence to Queenslanders that the vital work of mine rehabilitation will be completed.”— 2018-11-14View Hansard
As Minister for Natural Resources, Mines and Energy, spoke in support highlighting complementary reforms including the abandoned mines program and improved monitoring of mines entering care and maintenance.
“For the first time, industry will have a role in assisting us maintain those sites through their contributions to this fund.”— 2018-11-14View Hansard
Supported the bill as a committee member but criticised the government for bypassing the committee process by introducing over 60 amendments at the last minute and the initial RTI exclusion provisions.
“I do not thank the Deputy Premier and Treasurer for bypassing our committee by bringing such a large number of amendments to this bill barely an hour ago.”— 2018-11-14View Hansard
As Minister for Environment, praised the bill as the most important reform in mining rehabilitation requirements in generations, highlighting the public interest evaluation process and rehabilitation commissioner.
“Over 90 per cent of land disturbed by mining was not rehabilitated. Low rates of rehabilitation increase the risk of more land becoming a financial liability for taxpayers and increases the risks of environmental harm from contaminants.”— 2018-11-14View Hansard
Supported the bill as a committee member but expressed concern about the lack of transparency, the 40 pages of amendments dropped at the last minute, and the initial RTI exclusion provisions.
“No-one in this state wants to see an abandoned mine that has not been rehabilitated to an acceptable standard.”— 2018-11-14View Hansard
Spoke in support, highlighting the risk-based pooled fund model, expanded surety options, and the benefits of progressive rehabilitation.
“This bill is unique in that it carries out a risk assessment which has not been done in other jurisdictions.”— 2018-11-14View Hansard
Supported the bill, noting the reforms originated from work commenced under the former LNP government when he was minister for environment, and acknowledged the pooled scheme was the best outcome despite BHP's concerns.
“All Queenslanders have high expectations when it comes to environmental protection. It is not something that is held by only one side of politics.”— 2018-11-14View Hansard
Spoke in support, emphasising community expectations that mined land should be rehabilitated and that taxpayers should not bear the costs.
“There is also a universal view in my community that when mining occurs the mining site should be properly rehabilitated and the people of Queensland should not be left with that bill as the company exits with the profits.”— 2018-11-14View Hansard
Supported the financial securities component but expressed serious concerns that the public interest evaluation process would give environmental lobby groups another lever to constrain mining development and scare off investors.
“We are happy with the financial securities part of the bill. I think it is good that we hold mining companies to account and that there will be money in the till when they need to clean up these mines.”— 2018-11-14View Hansard
Supported the bill, acknowledging both sides had raised concerns but stating the framework was the right one going forward to protect the environment and ensure viable resources.
“Although both sides of the argument in this debate have raised concerns about this bill, I believe that the framework is the right one going forward and one that the LNP also considered when it was in government.”— 2018-11-14View Hansard
Welcomed the bill's small steps on mine rehabilitation reform but strongly criticised Labor for allowing 218 existing final voids to remain unaffected and for caving in to mining companies on retrospectivity. Moved amendments to require backfilling of all coal mine voids.
“Labor looks like it is set for yet another big cave-in to big coal. One could indeed drive a mining truck through some of the loopholes in Labor's bill.”— 2018-11-14View Hansard
Spoke strongly in support, describing the bill as historic nation-leading legislation that would create new standards for mine rehabilitation and jobs in the rehabilitation industry.
“Today we will make history. We will pass nation-leading legislation that will ensure that mining companies, not Queensland taxpayers, are responsible for rehabilitation after mining.”— 2018-11-14View Hansard
▸In Detail14 Nov 2018View Hansard
Amendment to require coal mines and mines on flood plains to rehabilitate land to a stable condition including backfilling of voids, removing the exemption that allowed automatic approval to leave behind final voids.
That the amendment be agreed to
Party VoteVote on Greens amendment moved by Mr Berkman to require coal mines and mines on flood plains to rehabilitate land to a stable condition including backfilling voids. The amendment was defeated.
The motion was defeated.
What is a party vote?
This was a party vote. Each party's Whip declared how their members voted without a physical count, so individual votes were not recorded. Party votes are used when all members of a party are expected to vote the same way.
Government amendments Nos 1-60 addressing drafting errors, introducing the public interest evaluation process for non-use management areas, clarifying transitional provisions for existing mines, changing RTI exclusions to exemptions, and ensuring progressive rehabilitation and closure plan requirements.
That the amendments be agreed to
Party VoteVote on government amendments moved by the Deputy Premier (Ms Trad) to clause 104 relating to probable or proved ore reserves and rehabilitation plan requirements. The amendments were agreed to.
The motion passed.
What is a party vote?
This was a party vote. Each party's Whip declared how their members voted without a physical count, so individual votes were not recorded. Party votes are used when all members of a party are expected to vote the same way.