The Queensland Government has announced it will undertake a targeted review of the state’s Financial Provisioning Scheme to ensure the right balance is being struck between promoting mining investment and managing financial rehabilitation risks.
The Scheme requires mining companies to provide financial security, pay annual contributions to a Queensland government fund, or both, to cover remediation and rehabilitation costs should miners abandon activities or fail to deliver on their environmental obligations.
The review will examine the current policy settings and consider what amendments are needed to ensure the Scheme continues to strike the right balance for industry, the environment and the community.
The Department of Natural Resources and Mines, Manufacturing and Regional and Rural Development will undertake the review with Treasury and assume administration of the Scheme once the review is completed.
Treasurer, David Janetzki said the review would support the long-term strength of Queensland’s resources sector by aligning the Financial Providing Scheme with the department’s industry and resources development expertise.
“Queensland’s resources industry is a major driver of jobs, investment and economic growth, particularly in our regional communities,” Treasurer Janetzki said.
“This targeted review reflects the maturity of the Financial Provisioning Scheme in supporting new and existing resources investment, while maintaining clear expectations that resource companies rehabilitate mine sites over the life of their operations.
“It is about striking the right balance between getting industry off the ground, protecting the environment and meeting community expectations.”
Minister for Natural Resources and Mines, Minister for Manufacturing and Minister for Regional and Rural Development, Dale Last said the review would evaluate the Scheme’s policy settings and administrative arrangements.
“Since becoming Minister for Natural Resources and Mines, the Financial Provisioning Scheme has been one of the top three issues smaller mining companies and explorers continue to raise with me,” Minister Last said.
“This review will examine whether the current settings strike the right balance between supporting new and ongoing investment and managing the financial risk associated with rehabilitation.
“Queensland has an enormous opportunity to become a global leader in critical minerals, and the Crisafulli Government is committed to cutting red tape to unlock the next wave of investment.
“This review will make sure the Scheme remains fit for purpose and supports responsible resources development across Queensland without constraining investment.”
