DPI Update (Issue 65)

By on October 1, 2012

JOHN MITAS, General Manager Minerals & Extractive Operations, reports on the new mining laws to strengthen earth resources regulation.

THE Victorian Coalition Government has introduced amendments to mining laws to strengthen the enforcement powers of the State’s mining and extractive industry regulator. Energy and Resources Minister Michael O’Brien said the Mineral Resources (Sustainable Development) Amendment Bill 2012 (The Bill) will deliver clearer enforcement powers and increase the penalties for breaches of notices prohibiting activities or for failure to take required remedial action.

The Act regulates for the mining of minerals including coal, gold, coal seam gas, mineral sands and also extractive industries, including quarries.

The Coalition Government is committed to the responsible development of a sustainable mining and extractive industry that successfully co-exists with local communities and existing industries,” Mr O’Brien said. “Mining and exploration has a strong future in Victoria and, in particular, the potential to bring jobs and investment growth to our regions.”

The Bill will broaden the circumstances in which the Minister can issue notices to prohibit activities or require remedial action. Currently this is restricted to environmental risks, but the Bill will widen the reasons for acting to include public safety, infrastructure, land and property.

It will also significantly increase the penalties for failing to comply with notices to $352,100 for a company and $70,420 in any other case, with a daily default penalty of $42,252 for a company and $8,450 in any other case.

“These new laws will give the regulator stronger powers in cases where a company fails to comply with the Act, posing a serious risk to public safety, the environment, infrastructure, land or property,” Mr O’Brien said.

“Importantly, the changes announced today will not impose any extra regulatory burden on the industry, but will provide the regulator with more effective powers to enforce the law.”

The Bill will introduce new powers for a court to make orders to require compliance with notices from the Minister and for the Minister to apply to the Supreme Court for injunctions to ensure compliance with notices.

“This Bill demonstrates the Coalition Government’s commitment to fostering the efficient and responsible operation of Victoria’s mining sector,” Mr O’Brien said.

As a last resort, the Coalition Government will also be able to carry out remedial work itself if there is a serious risk to public safety, the environment, infrastructure, land or property. The Bill provides for those costs to be recoverable from the authority holder.

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