The NSW Resources Regulator is responsible for regulating rehabilitation under the Mining Act 1992 and the conditions of the relevant mining lease to ensure that land disturbed by exploration and mining activities is returned to a safe, stable and sustainable land use.
As part of the regulatory framework for rehabilitation, all exploration and mining title holders are required to lodge a security deposit with the department that covers the full rehabilitation costs. This requirement ensures that the NSW Government does not incur financial liabilities in the event of a title holder defaulting on their rehabilitation obligations. Further details are provided in our Policy: Rehabilitation security deposits and Guideline: Rehabilitation cost estimate. The title holder is required to provide an estimate of rehabilitation costs for consideration by the Regulator when determining the security deposit amount. The amount must be consistent with the stage of the exploration project or mine. A Rehabilitation cost estimation tool and Rehabilitation cost estimation tool handbook is available to assist in calculating the security deposit for a site.
An updated RCE Tool for improved accuracy is available now
The Resources Regulator undertakes regular reviews of the rehabilitation cost estimate tool to ensure it remains accurate and reflective of third party costs should the security deposit be required in the unlikely event of default by a titleholder. In 2021 the Resources Regulator engaged a specialist consultancy firm to undertake a benchmark review of the rehabilitation cost estimate tool. The benchmark review process involved sourcing rates from a range of sources including earthworks contractors, demolition contractors, mine sites and specialist consultants.
As a result of the review, the rehabilitation cost estimate tool has been updated to reflect revisions to specific rates as well as to include new rehabilitation line items. A key outcome being that the number of line items have been increased to 236 from 172 line items listed in the current tool. These additional items have been added to the tool to improve the granularity of calculations and to account for the range of rehabilitation methodologies that may be adopted for various exploration and mining scenarios.
Recent amendments to the Mining Regulation 2016 introduced new mining lease conditions relating to rehabilitation that sets clear, achievable, and enforceable requirements. The conditions will support best practice mine site rehabilitation by ensuring progressive rehabilitation occurs in a manner that achieves sustainable final land uses.
A transition period for industry to prepare for the changes
Recognising the need for the industry to prepare for the new requirements under the Mining Regulation 2016, which includes the trigger to submit rehabilitation cost estimates on an annual basis, a transition period is in place until 2 July 2022 to fully comply with the requirements. To align with this transition period, the Resources Regulator will be implementing a staged implementation approach whereby all title holders must use the updated rehabilitation cost estimate tool from the 2 July 2022.
As outlined in the Resources Regulator’s Compliance Priorities for January to June 2022, one of our key focus areas during the transition period will be undertaking targeted proactive assessments to determine compliance with obligations as well as performance of on-the-ground progressive rehabilitation.
Working with you to assist with the transition
The Resources Regulator team is available to work with you throughout the transition and we encourage you to begin using the tool now.
Please view our responses to FAQs. If you have any feedback or further questions we encourage you to contact us on 1300 814 609.
A free webinar will be held on 5 May 2022 at 10.00am to demonstrate the RCE Tool and discuss directly with industry.
