REFINING THE MINERAL RESOURCES (SUSTAINABLE DEVELOPMENT) ACT 1990
BRUCE McCLURE, CMPA’s General Manager reports on the recent first quarterly Stakeholder groups meeting held to discuss the second phase of possible changes to the MRSDA’s subordinate legislation.
AS Members of the CMPA are aware the former State Government (Bracks/Brumby) repealed the Extractive Industries Development Act 1995 and brought the regulation of the extractive industries into the Minerals Resources (Sustainable Development) Act 1990 (MRSDA). Following consultation with a number of industry bodies to consider proposed legislative amendments to the Act (as Phase 1), the Mineral Resources Sustainable Development Amendment Act 2010, as subsequently passed by Parliament in September 2010 and will come into operation in February 2012.
The second phase of the review centres on issues associated with work approvals processes that are governed by the MRSDA and other government acts/agencies. The intent as stated by the Department of Primary Industry (DPI) “is to streamline the process and reduce the regulatory burden and delays”. Other objectives of this phase (from the DPIs prospective) include “improving mineral and extractives resources protection, strengthening competition and ensuring that developers make the best use of the resources available to them”.
The DPI has prepared an engagement plan which it considers will provide for effective engagement with Government agencies, industry and the community in the development of proposals for legislative amendments to achieve the objectives above. Specifically this plan is tailored towards engagement with industry bodies such as the CMPA.
It is likely that changes to the Mineral and Extractive Regulations, guidelines and administrative processes will be suggested in this process. Any amendments to the latter will be dealt with by way of a separate engagement plan that will be developed once the Bill is passed by parliament.
The issues that will be discussed further and will underpin the development of proposals for legislative change are shown below. The list is divided into eight themes for each of which a discussion paper will be produced.
- Work Plans and Authorities
- Planning Requirements
- Work Approval Requirements and Streamlining Processes
- Stone Stewardship and Searching for Stone
- Decision makers, inquiry, review and dispute resolution
- Enforcement Provisions
- Rehabilitation Bonds
- Other Strategic Issues
Based on submissions received from industry bodies and any follow up discussions, policy position papers will be prepared by DPI that ultimately will form the basis of submissions to the state government cabinet for formalisation of the policy position and for the drafting of legislative changes.
One theme that will be handled differently is Rehabilitation Bonds. A “Bonds Working Group” has been established to consider options and alternatives to the existing bond mechanism. The CMPA is represented on this working group. It is the intention of the Secretariat to form a small internal working group to determine the CMPA’s position on this issue which will be sent to all members for their comments before a formal position is presented to the DPI Bonds Working Group.
The CMPA has over the last ten years taken a strong position on a number of issues. Take rehabilitation bonds for example. Every member knows that the bonds are set at unfeasibly high levels and that a chasm between a reasonable bond level and actual bonds is driving capital investment from the business and in some instances breaking businesses.
To simply use the bonds as a means of covering the perceived risks of an individual or company walking away from a Work Authority leaving rehabilitation issues is illogical and shows a real lack of understanding as to how the industry works in Victoria.
The majority of industry members realise that properly organized and run businesses using state of the art practices are essential but likewise the Government Departments need to realise that they have a responsibility to ensure that the regulations and practices as per the Work Authorities are actually being complied with.
CMPA Members are also aware of the enormous effort (time, money and stress) needed to pass through the Work Plan and Planning requirement regimes currently in place. Simply put they are an abomination and need serious refinement and streamlining.
No other industry in Australia would put up with the hurdles placed in the way of progress, of development as those placed on the extractives industry. Unfortunately, the industry is not seen as a large employer, it is generally out of sight out of mind. Yet its impact on the economy of this State is profound. The CMPA will be strongly pushing for major changes in Work Plans and Authorities, Planning Requirements and Work Approval Requirements and Streamlining Processes.
The CMPA has commented at various stages on most of the eight themes mentioned above. Usually the theme has been the topic of a Government review or proposed changes to various legislation. Our member’s views are important as you are the industry and we need to ensure the most favourable outcome for each and every one of you.
As you can see the timetable for the preparation of discussion papers and the bonds working group is very tight as the DPI want to prepare policy position papers for release for public comment in August September 2011. Consequently, the Secretariat will be seeking members help in ensuring that you all have a say on all issues under discussion. If we are to have a viable workable industry into the future then your comments will be vital to ensure that this happens.
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