The Chamber of Minerals and Energy of Western Australia (CME) has welcomed the review of mining securities by the Department of Industry and Resources that underpinned the recommendations announced recently by Resources Minister Francis Logan.
CME chief executive Reg Howard-Smith says the CME is committed to working collaboratively on developing a new and alternative assessment system for future consideration.
“Although CME had given in-principle support for the development of an alternative bond calculation methodology, final support for the new methodology would depend on it addressing the needs of industry and providing a clear environmental benefit,” Howard-Smith said.
Howard-Smith further explained CME’s final decision to support a new methodology would be conditioned on it delivering the following:
- The ability to reduce the bond based on a company’s risk profile and past performance. CME does not favour the imposition of a blanket full cost recovery policy on environmental bonds.
- Avoiding duplication of reporting obligations.
- The ability to fully retire bonds with clear guidelines detailing completion criteria.
- The capacity to assess bonds on a project basis as opposed to tenement by tenement.
Howard-Smith said CME believes the current bond system is working effectively and should be retained alongside the new methodology.
“More broadly, the resources sector remains committed to sustainable development practices and continues to take its environmental management obligations seriously and I look forward to reviewing the final report and recommendations,” he said.