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BUSINESS UPDATE (Issue 19)

By on February 7, 2005

South Australian Rehabilitation Levy Scheme Retained

Mary Thompson, CMPA Treasurer

In South Australia the Extractive Areas Rehabilitation Fund (EARF) provides funds for the rehabilitation of mine and extractive sites. It is funded by a 20 cents per tonne industry levy.Following a review of the Fund (where replacement with a rehabilitation bond system was considered) a number of changes have been made to the Fund’s operations. It is important to note however that the scheme has been retained.

  1. The amount of rehab that the EARF will pay for has been reduced to those things that are defined as “non-core”
  2. All “core rehab” will be paid for directly by the miner or quarry owner (previously the fund provided money for this upon application)
  3. Increased agency compliance activity will apply regarding rehabilitation activities
  4. The royalty will increase from 20 to 35 cents/tonne
  5. The contribution to the EARF (paid out of the royalty) will rise from 10 to 25 cents/tonne.

The increase in the levy would apparently have been higher had the EARF continued to fund all rehab ie. both core and non-core.

For more information see www.pir.sa.gov.au/sector5.shtml

It remains the intention of the CMPA to prepare a paper outlining possible operational and financial details assuming a similar scheme operated in Victoria. If you would like to contribute to the preparation of this paper, or if you have an opinion on rehabilitation bonds, or a story or anecdote to relate we would love to hear from you.

Please contact the CMPA office with any input.

Australian Construction Equipment Expo 2005

ACE 2005 is fast approaching and we look forward to seeing as many Members at the expo as possible.

The CMPA will be located at Stand 13 and would welcome assistance at any stage over the 3 days from Members interested in helping out.

At ACE 2005 you will be able to see, compare and buy all the latest equipment, services and technology for a number of industries including:

  • Earthmoving;
  • Quarry/Extractive;
  • Hire & Rental;
  • Owner-Operators;
  • Safety;
  • and many more…

ACE 2005 covers more than 50,000 square metres—more than 3 MCG arenas!

Every major brand of construction equipment is represented at ACE 2005.

See new products and equipment in action with lots of on-stand demonstrations by ACE Exhibitors.

Save thousands of dollars by purchasing at ACE 2005 with every Exhibitor offering a one-off ACE Show Special (listed on ACE website).

For enquires regarding the CMPA Stand please contact the Secretariat on (03) 9745 2132.

For more information regarding ACE 2005 please visit the website: www.ace2005.com.au

Work Authority Lease Agreements

After a large number of enquiries from Members, following is an abridged version of the information published in the ‘Associates & General Information Reference Manual’ each year.

A form of lease has been developed which is industry specific for CMPA Members, and is generic or standard enabling it to be used with minimum modification in most situations where Members propose leasing a quarry site. The lease will be referred to in this article as “the Generic Lease”.

Some of the industry issues that the Generic Lease addresses are:

  1. The provisions of the EIDA whereby a Work Authority ceases if the land owner withdraws his consent.
  2. The possibility of the quarry operator being forced to pay a royalty to the Crown, as well as to the land owner, if the title to the quarry site has a depth limitation.
  3. The situation where the extractable material is exhausted, or because of the decision of a court or tribunal or other reason beyond the control of the quarry operator, is prevented from conducting the extractive industry business on the site.
  4. The necessity for a quarry operator to be able to carry out his rehabilitation obligations on the site when the quarry operation ceases. If he cannot do this he will lose his bond.
  5. Rates and land taxes pose some very uncertain issues. Traditionally, land owners want tenants to pay rental or royalties, plus the rates and land tax applicable to the site. This raises valuation questions and often apportionment issues. It is preferable from the quarry operator’s point of view, if the lease is negotiated on a gross basis, i.e. the rental or royalty payable to the land owner is fixed, bearing in mind that the land owner will have the obligation to pay rates and land tax. However, having regard to the possibility that some land owners will not be prepared to enter into a lease on this basis, the Generic Lease allows for particular rates etc to be specified in the schedule.

Abridged from Nevett Ford Lawyers

VECCI ECONOMIC UPDATE

Supplied by VECCI www.vecci.org.au

For further information please contact:
Chris Cudsi
(03) 8662 5406
ccudsi@vecci.org.au

IN THE PIPELINE

Over the Christmas break, the CMPA was able to complete several of the projects previously listed. Our revised listing of projects we are working on for members is as follows:

  1. Development of several new ‘OHS Support in Quarries’ brochures covering the topics of silica, noise, drill rig selection, drugs and alcohol in the workplace, and explosive signage
  2. Development of support materials covering the topics of capital acquisitions, drill hole reports, and employee health management
  3. Provide further comment to government on the issues of the EIDA, ammonium nitrate management, and naturally occurring asbestos
  4. Establishment of a Business Support Board to assist members in difficulty
  5. Further investigate traineeships in Certificate III in the Extractive Industries Training Package
  6. Finalise planning for the 2005 Annual General Meeting and Dinner in Traralgon

If you are able to assist or are interested in any of the above projects, please call the Secretariat .

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