REHABILITATION BONDS ADDRESSED

The rehabilitation bonds issue has been addressed by the CMPA over the past two years and significant progress has been made to date on behalf of members who may not have been able to have a voice.

 Mr Kerr said the bonds review process had highlighted the fact the existing bond arrangements were unsustainable and there needed to be a commitment by industry to include rehabilitation into daily operating costs.

 The CMPA position has involved presentation of various options to address the current problems. These options include review of the bond assessment tool to ensure that the Work Authority holder will not walk away from responsibilities and nor the regulator endanger the WA holder’s business; or, introduce a per tonne stipend similar to the South Australian model, or allow a discretionary fund to be an option instead of the present bank guarantee arrangement.

 The DNRE bond white paper was released in April and the CMPA sought an extension to the comment period to ensure full member engagement and feedback. The key element of all CMPA negotiations is that no further financial burden is placed on members.

Quarries in the United Kingdom have been having similar problems with Rehabilitation Bonds.  The British Aggregates Association has been in contact with the CMPA and has offered to provide a copy of thier proposed Restoration Guarantee Fund.  It is intended that this be considered as another option available as an alternative to the current process.

This issue will be discussed with members at the November 29 General meeting with the intention of nominating a preferred option.

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