The Department of Mines and Petroleum has finalised new environmental assessment fees for mining proposals and program-of-work applications, to take effect from July 1.
The Department of Mines and Petroleum has finalised new environmental assessment fees for mining proposals and program-of-work applications, to take effect from July 1.
However the fees will be waived for work that is deemed ‘low impact’.
The assessment fees are $6,950 for mining proposals, which can last for the life of a mine, and $590 for a four-year program of work.
That’s half of what was originally planned, according to Mines and Petroleum Minister Bill Marmion.
“During the consultation process, the proposed fees were cut by almost 50 per cent and suggested annual charges were dropped altogether,” Mr Marmion said.
He said the fees formed part of the department’s wide-ranging reforms to environmental regulation, which aimed to save the resources industry more than $30 million a year.
However DMP executive director for environment Phil Gorey said the efforts of the department in regulating the mining industry come at a cost.
“These fees are being introduced following consultation with industry stakeholders,” Mr Gorey said.
“To ensure continued high levels of environmental regulation it is important the regulator maintains appropriate levels of funding, however the fees should not have a substantial impact on industry.”
Mr Marmion said there were increasingly high expectations on managing and caring for the WA environment.
“These fees are being introduced to help meet those standards and ensure the mining industry retains its strong community support to continue building out state’s future,” he said.
Mr Marmion compared the new fees to Queensland’s $1,800 annual exploration fee and mining fees of up to $76,000 per annum.
Mr Gorey said the fees would be waived for exploration or prospecting work deemed ‘low impact’, meaning if they disturbed less than a quarter of a hectare and were not on reserve land.
The department estimated $2.7 million would be derived from the new fee system per year.
The Association of Mining and Exploration Companies has emphasised its strong opposition to the new fees.
Chief executive Simon Bennison said the 'low impact' threshold of 0.25 hectares was "ridiculously small and inadequate for exploration activity".
"These fees are apparently required to fund a shortfall of $2.7 million in the DMP's reforming environment regulation budget," Mr Bennison said.
"This is encouraging poor business practice and sets a precedence on how the agency will finance future shortfalls in its budget."
Mr Bennison said the department's claimed $30 million saving was based on guesses of "unsubstantiated and perceived savings to industry".
