In brief:

• In November 2009, the Queensland Department of Environment and Resource Management released its Annual Compliance Plan.
• The Plan nominates mine water management and financial assurances as two key areas of focus.
• Coupled with prosecution proceedings that have recently commenced against five Queensland mines, this shows that the mining industry has entered a period of increased regulatory scrutiny.

The Queensland Department of Environment and Resource Management (DERM) recently released its Annual Compliance Plan 2009-2010. The Plan identifies priority compliance activities that will be targeted over its 12-month implementation period.

Of particular interest to the mining industry is the DERM’s focus in the Plan on mine water management and financial assurances.  Coupled with prosecution actions that have recently commenced against five Queensland mines by the DERM in late 2009 and early 2010, this shows that the mining industry has entered a period of increased regulatory scrutiny, which is likely to continue for at least the next 12 months.

Overview of the Annual Compliance Plan

The Annual Compliance Plan sets out a range of proactive compliance projects that the DERM intends to focus on over the Plan’s 12-month implementation period.  They are classified into three key areas, being:

• Critical issues: requiring immediate attention because of actual or threatened impacts to the environment, heritage or public safety;
• Emergent issues: being activities within particular business sectors that have the potential to impact on the environment; and
• Maintenance issues: which essentially involve ongoing compliance monitoring to ensure adherence to regulatory requirements. 

The compliance projects set out in the Plan are broad and varied, which is not necessarily surprising given the range of legislation the DERM is tasked with administering.  However, the following two compliance projects are likely to be of particular interest to industry.

Critical issue: mine water management

Mine water management, and particularly wastewater discharges from mines during high rainfall events, is included as a “Critical issue” within the Plan.  The DERM’s objective is to improve stormwater and wastewater management practices at high-risk mines within Queensland.  It proposes this be achieved by:

• reviewing the adequacy of design guidelines and the consistency of permit conditions in relation to water storages; and
• inspecting those sites identified as representing the highest risk, and taking remedial action where required. 

In a media statement released in conjunction with the Annual Compliance Plan, Queensland Climate Change and Sustainability Minister Kate Jones made it clear that mine water management was a priority for the DERM.  Following extremely heavy rainfall in north-west Queensland in early 2009, overflows and off-site discharges occurred at a number of mines.  Ms Jones’ assurance that action would be taken against mines found to have breached approval conditions has since materialised, with charges being laid against five Queensland mining companies in late 2009 and early 2010.

The issue of consistency across permit conditions has also been the focus of a project within the Fitzroy River Basin aimed at improving the region’s water quality.  Early in February 2010, Ms Jones announced the acceptance of a uniformly applied set of wastewater discharge conditions by 42 coal mines within the Fitzroy River Basin.

Ongoing scrutiny of mine water management systems can be expected in coming months.  For many mine operators, this will bring with it pressure to improve the performance of existing water management systems and implement upgrades where shortcomings are identified. 

Emergent issue: mining financial assurance

The accuracy of financial assurance estimates in Plans of Operations is included as an “Emergent issue” within the Annual Compliance Plan.  The DERM’s objectives are to:

• ensure Plans of Operations accurately disclose rehabilitation works and costs; and
• develop and implement tools to allow regional implementation of financial assurance and rehabilitation assessments.

These objectives are to be achieved by:

• examining the accuracy of information contained in Plans of Operations, particularly the categorisation of significantly disturbed land and the calculation of financial assurance; and
• conducting site inspections and taking remedial action where required.

From a practical perspective, members of the mining industry may see this translate to:

• more detailed review by the DERM of any new, amended or replaced Plan of Operations when submitted;
• requests by the DERM for the resubmission of a Plan of Operations incorporating further information or addressing perceived shortcomings; and
• resistance from the DERM in terms of “accepting” a Plan of Operations that is perceived to be inadequate.

While there is no statutory power for the DERM to accept, approve or refuse a Plan of Operations, we are increasingly seeing the DERM challenge them on the basis that they do not, for example, comply with general statutory requirements for Plans of Operations as set out in the Environmental Protection Act 1994 (Qld).  These types of challenges are best avoided by having a transparent Plan of Operations that complies with statutory requirements and which accurately reflects the mine’s rehabilitation costs.

Source: http://www.myblakedawson.com/Templates/Publications/x_article_content_page.aspx?id=58353

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