Mineral and Energy Resources (Financial Provisioning) Bill 2017

Introduced: 25/10/2017By: Hon C Pitt MPStatus: Lapsed

Environment Business & Economy Regional Queensland

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Plain English Summary

Overview

This bill creates a new pooled Financial Provisioning Scheme that makes mining companies share the cost of protecting Queensland from unrehabilitated mine sites. It also requires every mine to prepare a binding Progressive Rehabilitation and Closure Plan with enforceable milestones, audited every three years.

Who it affects

Mining, petroleum and small-scale resource companies will pay contributions or sureties based on the risk they pose, while communities and taxpayers get stronger protection from bearing clean-up costs when companies fail.

Key changes

Creates a $450 million Financial Provisioning Fund that pools contributions from lower-risk mines instead of each holding individual bank guarantees
A new scheme manager allocates every mine to one of four risk categories (very low, low, moderate, high), with high-risk miners required to provide full surety
Every site-specific mining lease must have a Progressive Rehabilitation and Closure Plan setting enforceable milestones for rehabilitating mined land
Wilfully breaching a PRC schedule condition can attract penalties up to 6,250 penalty units or 5 years imprisonment
The fund can pay for rehabilitation of legacy abandoned mines and research into rehabilitation techniques
Voids left in floodplains must be fully rehabilitated before an environmental authority can be surrendered

How this affects you

Environment

•Mines must now follow a legally binding plan with deadlines for rehabilitating disturbed land as the mine operates, not just at the endClause 104 (new EP Act ss 126B-126D)Every mining lease must have a Progressive Rehabilitation and Closure Plan with rehabilitation milestones tied to timeframes, audited every three years by an independent auditor.
•Voids left in floodplains must be fully filled in and rehabilitated before a mine can walk awayClause 104 (new EP Act s 126D(3))If a PRC plan area will have a void situated wholly or partly in a floodplain during operations, the PRCP schedule must provide for the rehabilitation of the area to a stable condition prior to surrender.
•Wilfully breaching a rehabilitation condition can now lead to up to 5 years in prison for mine operatorsClause 188 (new EP Act s 431B)A wilful contravention of a PRCP schedule condition carries a maximum penalty of 6,250 penalty units or 5 years imprisonment.
•The new pooled fund can be used to clean up old abandoned mines that were never rehabilitatedClauses 3, 64The scheme fund provides a source of funds for rehabilitation of pre-commencement abandoned mines, abandoned operating plants and scientific research into rehabilitation techniques.

Business & Economy

•Lower-risk mining companies will likely pay less because they contribute to a shared fund instead of providing a full bank guarantee for every siteClauses 46-47Authorities in very low, low or moderate risk categories pay an annual contribution calculated as a prescribed percentage of their estimated rehabilitation cost, rather than giving full surety.
•High-risk mining operators and those whose total rehabilitation cost exceeds $450 million must still provide full surety to protect the fundClauses 11, 49, 53Where the total ERC for a holder and its corporate group exceeds the fund threshold of $450 million, the scheme manager may require surety to preserve the financial viability of the scheme fund.
•Mines cannot legally operate without a current Estimated Rehabilitation Cost decision and paid contribution or suretyClause 171 (new EP Act s 297)It is a deemed condition of every environmental authority for a resource activity that the holder must not carry out the activity unless an ERC decision is in force and the contribution or surety has been given.
•Confidential financial and joint venture information given to the scheme manager is exempt from Right to Information requestsClauses 215-216Documents created or received under part 3 of the Act and the scheme manager as an entity are exempted from the Right to Information Act 2009 to allay holders' concerns about sensitive business documents being publicly disclosed.

Regional Queensland

•Queensland's mining industry, a major employer in regional areas, gets a more sustainable cost structure that the government says strengthens its social licencePolicy objectivesThe bill aims to address growing community concerns about the quantity and quality of rehabilitation in mining regions while protecting the industry's long-term sustainability.
•Communities in mining regions gain clearer, publicly registered rehabilitation plans showing what their land will look like after mining endsClauses 124, 199Approved PRC plans and PRCP schedules are kept on public registers, showing maps of post-mining land uses, non-use management areas and rehabilitation milestones for each site.
•Regional residents can make submissions when a mine proposes major changes to its rehabilitation outcomesClauses 114-115, 142Major amendments to a PRCP schedule, including changes to post-mining land uses or non-use management areas, must be publicly notified and open to submissions.

Bill Journey

Introduced25 Oct 2017

First Reading

Committee

Committee Report

Second Reading

Lapsed29 Oct 2017

Referenced Entities

Sectors Affected

Pollution Control Coal Mining Mineral Exploration Mineral Mining Petroleum and Gas

Classified using AGIFT/ANZSIC Australian government standards

Mineral and Energy Resources (Financial Provisioning) Bill 2017

Plain English Summary

Overview

Who it affects

Key changes

Bill Journey

Referenced Entities

Legislation

Organisations

Programs & Schemes

Roles & Offices

Sectors Affected

Source Documents