Mining rehabilitation fund to undergo independent review

Mines and Petroleum Minister Bill Johnston has announced an independent review of the Mining Rehabilitation Fund (MRF) to ensure it continues to meet its objectives and sufficient financial reserves are available.

The MRF is used by the state government if a mine operator is unable to meet their rehabilitation obligations and the site is declared abandoned.

Economic consultants Marsden Jacob Associates will undertake the review and consult with a wide range of stakeholders that completed an MRF evaluation in 2018.

The Mining Rehabilitation Fund Act 2012 (MRF Act) was created to ensure the mining industry is financially responsible for restoring existing and abandoned mine sites — not WA taxpayers.

WA tenement holders, except those under state agreements, are required to pay an annual levy to the fund with contributions based on the level of ground disturbance on the tenement.

A statutory panel monitors the MRF financial reserves and levy contribution rate to ensure they meet current and emerging rehabilitation liabilities.

The MRF also provides funds to address legacy mine sites and is currently supporting the Safer Shafts for Towns project that remediates risks close to regional communities.

The MRF Act requires an independent review to be undertaken within 10 years of its commencement.

Mr Johnston commented on the review.

“The Cook Government remains committed to achieving a successful balance between robust environmental standards and a strong and dynamic resources sector,” he said.

“We will continue to work with industry and the community to ensure we deliver best practice mine rehabilitation outcomes for our state.

“The Mining Rehabilitation Fund’s support of abandoned mines, like Ellendale (diamond mine), are invaluable as it helps to assess risks and identify any remediation works to benefit the local community.”