The implementation of the Mining Rehabilitation Fund (MRF) saw the Department of Mines and Petroleum return millions of dollars in unconditional performance bonds associated with dead tenements to mining companies and individuals.
Dead tenements occur when a former holder no longer has exploration or mining rights over the area or land, either because the time period of the tenement has expired, or the tenement has been surrendered or forfeited.
According to the media release issued by Mines and Petroleum Minister Bill Marmion, the department is currently in the process of returning more than $6 million in bonds to former tenement holders.
“At the beginning of 2014, the department was holding almost $11million in unconditional performance bonds for nearly 400 dead tenements. These dead tenements cannot enter the MRF, so the bonds can only be returned to the dead tenements’ former holders once the department is satisfied that any land disturbance has either been fully rehabilitated, or absorbed into another mining operation,” Mr Marmion said.
“The department has been investigating each dead tenement and, where it is satisfied that rehabilitation has occurred or the tenement has been absorbed, the bonds are being retired and returned to the former holders. In addition to these bonds that are currently being retired, many operators have also indicated they will now complete the required rehabilitation to enable the bonds on their dead tenements to be retired.”
The Minister said that the introduction of the MRF had been a positive move for both the government and industry, and added that any bonds that are left remaining on dead tenements will eventually be called in to assist with future rehabilitation of the outstanding sites.
“The State Government’s contingent liability for rehabilitation of legacy abandoned mines has been reduced from potentially $5billion down to zero. Many operators have seen a reduction in annual operating costs and those with a rehabilitation liability of less than $50,000 aren’t subject to the annual levy, meaning that funds are freed up for further investment,” Mr Marmion said.
“As annual contributions to the fund are based on the amount and type of ground disturbance, the MRF also acts as an incentive for ongoing rehabilitation.”
 saw the Department of Mines and Petroleum return millions of dollars in unconditional performance bonds associated with dead tenements to mining companies and individuals.){kind=link}