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PERTH (miningweekly.com) – The Western Australian government on Wednesday announced plans to introduce legislation to validate environmental approvals, after a review found 25 projects’ environmental approvals at risk of being declared invalid.
This following a review of the independent Environmental Protection Authority’s (EPA’s) conflict of interest procedures and relates to EPA decisions between 2002 and 2012.
The review was prompted by a 2013 Supreme Court decision on the Browse liquefied natural gas (LNG) precinct. The Supreme Court invalidated the EPA’s original assessment report and recommendations for the Browse LNG precinct, with Supreme Court Justice Wayne Martin ruling in favour of the Wilderness Society of Western Australia when it argued there was a conflict of interest in the EPA process and that the Environmental Minister had erred in granting the project approval.
“The court’s decision found that the environmental approval issued for the precinct was invalid, due to the EPA failing to comply with the requirements of the Environmental Protection Act, relating to conflicts of interest and quorum procedures,” Environment Minister Albert Jacob said.
Following the court’s decision, Jacob asked the state Solicitors Office to conduct a review of the validity of other environmental approvals.
“After considering the legal advice contained in that review, the government has identified 25 projects where there was a potential risk that state environmental approvals could be determined to be invalid.
“This doesn’t mean the projects pose risks to the environment, and there is nothing to indicate that the EPA did anything other than assess the environmental factors relating to proposals on their merits.
“Rather, these potential risks stem from technical governance issues relating to the EPA’s conflict of interest procedures, with conflicted board members being allowed to participate in discussion evaluating projects in which they had declared an interest.”
Jacob said that in some cases, this conflict was due to a member holding shares in a company with an interest in the project being evaluated.
“This is an unfortunate necessity that will provide certainty to projects and ensure confidence in doing business in Western Australia,” he said.
Iron-ore miner Fortescue Metals on Wednesday told shareholders that its Solomon operations were unlikely to be affected by the new legislation, despite the project being one of the 25 identified.
CEO Nev Power said that the company did not foresee any risk of operational impacts at this time.
“Having identified the issues we are assured that the state is taking all appropriate steps to remove any risk so as to provide investment certainty for Western Australian projects which might be affected,” he added.
Power applauded the state government for taking decisive action to provide certainty to Western Australian projects.
The Western Australian Chamber of the Minerals and Energy (CME) has also welcomed the legislation, with CME CEO Reg Howard-Smith saying the state government was taking action to mitigate any risk through the validating legislation.
“It is important to note this legislation is about removing potential risks around technical governance issues, rather than any environmental concerns,” said Howard-Smith.
“The Western Australian resources sector wants the approvals system to be one which has environmental integrity, is readily understood by proponents and is respected by the broader community.”
Meanwhile, Jacob pointed out that the new legislation would not validate the Browse LNG precinct proposal, which was currently being reassessed by an independent panel.