A performance audit into whether the State is effectively managing its exposure to liabilities from the rehabilitation of mines has found it not effectively regulating operators’ compliance with their rehabilitation responsibilities.
The audit examined the Department of Jobs, Precincts and Regions (DJPR), which regulates mining rehabilitation through its Earth Resources Regulation (ERR) unit and how DJPR and the Department of Environment, Land, Water and Planning (DELWP) identified and managed rehabilitation liabilities from abandoned and legacy sites.
In his report, Rehabilitating Mines, Auditor-General Andrew Greaves says site rehabilitation is a key part of minimising risks to the public, the environment, property and infrastructure.
“DJPR is not effectively regulating operators’ compliance with their rehabilitation responsibilities,” Mr Greaves said.
“This exposes the state to significant financial risk because some sites have been poorly rehabilitated or not treated at all,” he said.
“If not addressed, these sites also present risks to Victorians and the environment.”
Mr Greaves said systemic regulatory failures included using outdated cost estimates; not periodically reviewing bonds for their sufficiency; failure to assure site rehabilitation had actually occurred before returning bonds; approving inadequately specified rehabilitation plans; and lack of enforcement activities.
“Further, while some changes to address conflicts of interest were made following Parliament’s Independent Inquiry into the EPA in 2016, ERR—the primary mining regulator—still resides within DJPR, which seeks to foster and develop the mining industry,” he said.
“ERR acknowledges that it has not effectively discharged its responsibilities and is working to rectify identified issues.”
Mr Greaves made eight recommendations aimed at eliminating the conflict of interest that exists due to the location of the mining regulator; ensuring rehabilitation bonds were sufficient to cover rehabilitation costs; and the development and implementation of a rehabilitation-specific inspection and monitoring program.
The Auditor-General’s 96-page report can be accessed at this PS News link.
