From the Secretariat (Issue 109)

By on April 7, 2020

Rehabilitation in the extractive industry

DR ELIZABETH GIBSON, General Manager of CMPA responds to Earth Resources Regulation’s media release dated 14 February 2020 “Better site rehab to underpin public confidence”.

The CMPA was originally founded on a number of issues including the ever-increasing rehabilitation bond and its detrimental impact on small to medium businesses operating in Victoria.

There is much concern over Earth Resources Regulation (ERR) media release dated 14.02.20 regarding rehabilitation.

The same regulations and guidelines for mines are being applied to the lower and different risk profile of the extractive industry.

The CMPA has long since advocated that the extractive industry has an exceptional record of successful rehabilitation, but this has fallen on “deaf ears”.

The recently released MR(SD) (Extractive Industries) Regulations (2019) were adopted from the MR(SD) (Mineral Industries) Regulations (2019) despite submissions made by CMPA verbally and in writing.

What does this mean for the extractive industry if ERR continue their current path:

  • A CPI increase in rehabilitation bonds of 17%;
  • More complex rehabilitation management plans for new work plans and work plan variations;
  • Stringent reporting requirements for rehabilitation, annually;
  • Reassessment of bonds with a proposed newly modified (by ERR) bond formula;
  • Estimated increase in costs of 30% overall for rehabilitation (Regulatory Impact Statement for the Mineral Industries Regulations).

At the CMPA Management Committee meeting (26.02.20) it was agreed that letters be sent to Minister Symes via email under individual Members (including Associate Members) letterhead/signatures.

Thank you to members for the overwhelming support for this approach.

A follow up will occur on this issue in Sand & Stone Issue 110.

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