Government of Western Australia Launches Public Consultation on Legislative Amendments to the Mine Rehabilitation Fund

en.Wedoany.com Reported - On November 12, the Government of Western Australia published a discussion paper on amendments to the Mining Rehabilitation Fund Act 2012, launching a 12-week public consultation on eight proposed legislative amendments to improve the management of the Mine Rehabilitation Fund. The changes concern the use of fund moneys under special circumstances, reassessment of the mining rehabilitation levy, authority over abandoned mine remediation, notification procedures for joint holders of mining tenements, and arrangements for subsequent statutory reviews. Submissions close at 4:00 p.m. on February 4, 2027.

The legislative changes stem from the statutory review marking the 10th anniversary of the Mining Rehabilitation Fund Act 2012. The independent review was tabled in the Parliament of Western Australia on April 18, 2024 and made 16 recommendations for improvement. The review found that the current legislation generally operates well and does not require a comprehensive overhaul, but that certain provisions on the use of funds, levy reassessment and abandoned mine remediation still need refinement. The Department of Mines, Petroleum and Exploration has accordingly proposed eight amendments across five areas, and is now seeking views primarily from mining companies and relevant stakeholders.

The mechanism for using fund moneys is one of the key focuses of this round of amendments. Under the current system, abandoned mine rehabilitation is funded mainly through investment returns on the fund. The Government proposes to add authority to draw on the fund's principal in special circumstances: where there is a major economic shock, where interest earnings on the fund remain low for an extended period, or where other unforeseen exceptional events occur, the Chief Executive Officer of the Department of Mines, Petroleum and Exploration may, at their discretion, approve the use of fund principal to support rehabilitation work within the scope permitted by law. The proposed cap on such use is 20% of the principal received in the previous reporting period; any drawdown would still require authorization and would be subject to appropriate conditions.

The levy reassessment mechanism will also be adjusted. The Government proposes to remove the current time limit requiring reassessments to be both commenced and completed within a specified period, so that review processes already initiated can continue; at the same time, the period for which reassessments may be applied retrospectively will be extended from two years to five years. Following the adjustment, the regulator will be able to verify rehabilitation liabilities and levy amounts reported by mining companies over a longer timeframe, addressing underpayments caused by systematic under-reporting and overpayments caused by erroneous over-reporting.

With respect to abandoned mine remediation, the discussion paper proposes three supporting adjustments. First, expand the range of rehabilitation activities that may be paid for from the fund to include ancillary, supporting and enabling work related to on-site rehabilitation; second, amend the legal definition of access rights for abandoned mines by removing the requirement that fund moneys must actually be spent before such access rights can be established; third, confer on the regulator the power to require relevant parties to provide reports and data needed for abandoned mine remediation, so that necessary historical records and site information are available when rehabilitation plans are developed.

In addition, the Government proposes to amend the statutory notification procedures for joint holders of mining tenements. For mining tenements held jointly by multiple parties, the current rules allow each party to nominate an address for service, while the new proposal would allow joint holders to nominate one party as the single recipient of notices, reducing duplication in administrative notifications and reporting management. The discussion paper also proposes that the next 10-year statutory review be initiated only after this round of amendments is approved and formally implemented.

The Mine Rehabilitation Fund of Western Australia is used primarily for the remediation of abandoned mines and related legacy mining facilities. Funded activities include the rehabilitation of the abandoned Ellendale diamond mine and projects for making abandoned mine shafts near towns safe. Once these amendments are completed, the scope of fund expenditure, spending authority under special circumstances and the mechanism for verifying historical mining liabilities may all change. After the public consultation closes, the State Government will refine the amendment proposals in light of the submissions received before submitting them for State Government consideration; a discussion paper on supporting amendments to the Mining Rehabilitation Fund Regulations 2013 is expected to be published separately in early 2027.