Report snapshot: Regulating mine rehabilitation
About this report
In NSW, mining companies are legally required to rehabilitate disturbed land and water to a safe and stable condition. Mining companies must also provide a security deposit to cover the cost of rehabilitation in case they default on their obligations.
The Department of Primary Industries and Regional Development (the Department) is responsible for overseeing and enforcing these requirements. These functions are delivered by a unit in the Department, known as the NSW Resources Regulator.
This audit assessed the effectiveness of the Department in monitoring compliance with and enforcing mine rehabilitation requirements. This audit focused on the rehabilitation of large mines.
Findings
The Department is not effectively monitoring and reporting on compliance with mining rehabilitation requirements. However, regulatory reforms introduced in July 2021 provide a more robust regulatory framework for mine rehabilitation. These changes, if implemented effectively, should provide the Regulator with a consolidated view of rehabilitation progress for large mines.
Current gaps in the Department’s data framework mean that it does not have a comprehensive and reliable view of rehabilitation progress and enforcement outcomes. This limits the Regulator’s ability to effectively regulate mine rehabilitation. Further, there is no current plan to evaluate the effectiveness of its regulatory program.
While the Regulator collects data on the amount of land under rehabilitation, it does not collect data on the amount of disturbed land available to mining companies for rehabilitation. Without this data, the Regulator is unable to determine whether a mining company has rehabilitated disturbed land as soon as reasonably practicable after the disturbance occurs.
The total value of rehabilitation security deposits held by the Department was around $4 billion in 2023–24. If there is a shortfall in deposits held for one mine, that shortfall cannot be covered by another mining company’s security deposit. A Rehabilitation Cost Estimate tool is used to calculate required security deposits for each mine. The Regulator updates this tool around every four years, but there is no allowance between reviews to account for inflation or changes to industry rates.
Recommendations
The audit makes four recommendations, including to:
- implement an evaluation plan to measure regulatory outcomes
- address gaps in the data framework
- develop and report publicly on key performance indicators and targets
- enhance governance and regulation for mine rehabilitation, including by ensuring planning documents consider emerging risks.
Fast facts
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Further information
Please contact Renee O'Kane, Chief of Staff, on 9275 7347 or by email.