Mining Rehabilitation Fund problems exposed

Mining Rehabilitation Fund Flaws Exposed

Wednesday 28th August 2013

Greens Senator for Western Australia Scott Ludlam and Greens WA spokesperson on Mining issues, Robin Chapple MLC, today blasted the Liberal/National state government over its flawed mining rehabilitation regime, after damning new evidence of its fundamental weakness came to light.

Senator Ludlam said “The Greens have been the only party to stand up and condemn the Barnett/Grylls government for watering down what was already a pitifully inadequate scheme.

“This week’s revelation that Reed Resources’ subsidiary GMK Exploration has gone bust just weeks after its prior environmental performance bond obligation was removed, shows just what a manifestly inadequate system we now have in place.

“In a scenario reminiscent of the bad old bottom-of-the-harbour scheme days, we have now seen in stark relief what can and will happen under these incredibly lax new arrangements.

“This was always going to be a high risk strategy by the government – they are playing fast and loose with the massive problem of how to pay for remediating the thousands of abandoned minesites across the state, many hundreds of which are in a shocking state, posing huge dangers to the environment”, said Senator Ludlam.

Mr Chapple continued, “To introduce such an inadequate system at the beginning of a downturn in the mining investment cycle, leading inevitably to less income for the fund, just heightens the irresponsibility of what the Liberal/National government has done.

“It will take many decades for the new fund to accumulate anything like enough funds for the job at hand – meanwhile it’s the taxpayers who are left to pick up the tab.

“What is sorely needed here are severe penalties, even under the Criminal Code if necessary, otherwise the cowboys at the fringes of the mining industry can just walk away from their responsibilities”, concluded Mr Chapple.

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