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Financial Provisioning Regulations Under the Spotlight

May 20, 2022

Department of Forestry, Fisheries and the Environment

Holders of rights applied for before 20 November 2015 have been granted a 15-month extension to comply with the 2015 Financial Provisioning Regulations.

In a statement, the forestry, fisheries and the environment department confirmed that the extension was granted as the proposed amendments to the Financial Provisioning Regulations of 2015, gazetted on 27 August 2021 for public comment, are still being finalised.

The Regulations deal with financial provision for prospecting, exploration and mining operations.

In particular, they seek to ensure that sufficient financial provisioning is in place to cover the costs of rehabilitation and remediation of environmental impacts due to mining activities.

Applicants or holders of a right or permit need to make financial provision to guarantee the availability of sufficient funds to undertake rehabilitation and remediation of the adverse environmental impacts of prospecting, exploration, mining or production operations.

Financial provision is also needed for decommissioning and closure activities at the end of prospecting, exploration, mining or production operations.

Affected holders have until 19 September 2023 to comply.