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COMMITTEE'S REPORT

View:   Mineral and Energy Resources (Financial Provisioning) Bill 2017
View:    Mineral and Energy Resources (Financial Provisioning) Bill 2017 – Explanatory notes
View:    Mineral and Energy Resources (Financial Provisioning) Bill 2017 – Explanatory speech

About the Bill

On 25 October 2017, the Treasurer, Minister for Trade and Investment, Hon Curtis Pitt MP, introduced the Mineral and Energy Resources (Financial Provisioning) Bill 2017.

In accordance with Standing Order 131 of the Standing Rules and Orders of the Legislative Assembly, the Bill was referred to the Agriculture and Environment Committee (the committee) for detailed consideration. The committee is required to report by 8 December 2017.

The objectives of this Bill are to:

• manage the financial risk to the State if mineral and energy resource tenure holders do not comply with their environmental management and rehabilitation obligations, and
• ensure that land disturbed by mining activities is rehabilitated to a safe and stable landform that does not cause environmental harm, and can sustain an approved post-mining land use.

The Bill proposes to establish a financial provisioning scheme for the mineral and energy resources sector. The financial provisioning scheme will provide the Queensland Government with access to funds in circumstances where a holder of an environmental authority does not comply with its obligations under the Environmental Protection Act 1994 (EP Act) and for other resource related activities such as funding legacy abandoned mines, abandoned operating sites and research into rehabilitation techniques.

The Bill replaces the current financial assurance requirements for resource activities under the EP Act with a financial provisioning scheme, including a Financial Provisioning Fund, surety arrangements and the appointment of a scheme manager to manage the scheme.

According to the explanatory notes, the Bill will achieve its second objective by implementing mine rehabilitation reforms that reflect best practice in mining operations and rehabilitation. The key pillar of the framework is the introduction of a requirement for mines subject to a ‘site-specific environmental authority’ to develop a progressive rehabilitation and closure plan (PRC Plan).

The PRC Plan requires the environmental authority holder to plan for how and where activities will be carried out on the land in a way that maximises the progressive rehabilitation of the land. The PRC Plan must identify the proposed post-mining land use for the land, and include rehabilitation milestones for progressive rehabilitation and timeframes for when each milestone will be achieved. Regular monitoring, assessment and reporting combined with the enforceable milestones of the PRC Plan, and new offence provisions for failing to meet milestones or PRC Plan conditions, will facilitate the achievement of the policy objectives.