PERTH (miningweekly.com) – Queensland mining companies will now be compelled to sign up to progressive rehabilitation plans after the state Parliament passed the Mineral and Energy Resources (Financial Provisioning) Bill.

The bill delivers new requirements for the planning and delivery of progressive rehabilitation of mined land, and a financial provisioning scheme to ensure funding is available to cover rehabilitation costs when resource companies can’t meet their rehabilitaton or environmental management obligations.

Deputy Premier and Treasurer Jackie Trad told Parliament the reforms struck the right balance for the industry, the environment and the community and would support the expansion of the mine rehabilitation sector, and jobs, in regional Queensland.

“These ground-breaking reforms strike the right balance between a strong and thriving resource sector and world class environmental standards around rehabilitation,” the Deputy Premier said.

“The resource sector is a great contributor to the Queensland economy, providing jobs for many Queenslanders, however we have an obligation to ensure their activity is sustainable and benefits Queenslanders in the long term.

“The new laws will compel mining companies to progressively rehabilitate mined land so we don’t leave a legacy of abandoned mines for future generations.

“They will also ensure mining companies, not Queensland taxpayers, foot the bill for the rehabilitation of failed mines or stranded assets. This is what the community expects and we will hold companies to their word and demand best practice rehabilitation.”

Minister for Natural Resources, Mines and Energy Dr Anthony Lynham said the Bill provided more options for resources companies to provide the required sureties, including the introduction of insurance bonds.

“Providing a wider range of acceptable sureties will expand the market of surety providers, and due to increased competition, will enable the industry to obtain these at a more cost-effective rate.”

Lynham said another important benefit of the new financial provisioning scheme was the increased money available to enhance the state’s abandoned mines program as well as to invest in research and development of rehabilitation techniques for mining and resources activities.

The Queensland Resources Council (QRC) has welcomed the new laws, saying that it would ensure the state’s resources industry could continue creating jobs and revenue while meeting the highest environmental standards.

““The new scheme means taxpayers won’t have to foot the bill in the unlikely scenario where a company fails to meet its rehabilitation commitments. Resources companies will all contribute to the fund, and over time it will increase the amount available for rehabilitation commitments by about A$2-billion,” QRC CEO Ian Macfarlane said.

“This fund helps give peace of mind to taxpayers, but it’s more likely it won’t be required, given the world-leading rehabilitation standards of the Queensland resources industry.”

Macfarlane commended the government’s decision not to apply the new law retrospectively to existing mines, saying that it would have had a devastating consequence for existing jobs and future investments.

“Every Queensland town and community has a vested interest in a keeping our resources sector firing on all cylinders.

“Our resources sector employs around 300 000 Queenslanders, both directly and in supporting industries, and it pays more than A$4-billion in royalty taxes each year. We develop our natural resources to the benefit of all Queenslanders and we are committed to sustainable land management both now and for the future,” Macfarlane said.