Many companies in the mining industry could be at risk fines of up to $200,000 ahead of a greenhouse gas reporting deadline, a leading business advisor has told MINING DAILY.
Under the National Greenhouse and Energy Reporting (NGER) Act 2007, high energy users that exceed specified emissions thresholds are required to apply for registration with the Department of Climate Change by 31 August.
According to Dylan Byrne of business and corporate advisory group BDO Kendalls, some mining companies may have allowed the upcoming deadline to escape their notice.
“Companies with internal departments to review these matters day in and day out are probably up to date, but there are a lot of companies in the mining industry who have cut staff numbers dramatically in the last year,” he said.
“Some mining companies have been distracted and the deadline might not have been on their radar.”
The Department of Climate Change has recently started advertising in publications such as the Financial Review in an effort to raise awareness.
The reporting requirement applies to individual facilities producing 25 kilotonnes (kt) of carbon dioxide (CO2) or consuming 100 terajoules (TJ) or more of energy, and for corporate groups emitting 125kt of CO2 or consuming 500TJ of energy.
Following registration by the end of August, full reports on energy consumption, production and greenhouse gas emissions are required by 31 October.
Byrne said that larger operations will not be the only ones at risk of having large emissions numbers.
“Companies need to look closely at what their operation is because different kinds of minerals have got different kinds of equipment needs or energy uses,” he said.
“With coal mining for example, if you have an open cut mine you are pretty much definitely going to be caught by it.
“You do not have to have a very big mine to trigger the threshold.”