REMINDER: Western Australia tenement holders can voluntarily opt
into the Mining Rehabilitation Fund (MRF) from
Monday 1 July 2013.
The voluntary opt in period allows companies:
to retire existing unconditional performance bonds
(UPBs) early, which will result in cash payments
where the existing bonds are cash backed and reduce the need for
time to establish and test appropriate administrative systems
and data inputs (particularly important if you have a large number
of tenements or multiple registered tenement holders).
The MRF system is entirely online and it is free to opt into.
The type and area of environmental disturbance on each tenement
will need to be collated and submitted into the system. This may
involve significant time and administration if you have a number of
If your data adds up to an environmental liability above
$50,000.00 for the reporting year, you will be required to pay a
levy to the fund. Some tenement holders may have to pay more under
the MRF than under current UPB rates.
It is important to note that the MRF requires all registered
tenement holders to consent to the opt in and submission of data.
Where a tenement has multiple holders, parties will need to
consider how MRF arrangements are best co-ordinated.
There will be no impact on the tenement title if you decide not
to opt in straight away.
The voluntary period simply allows tenement holders the chance
to access cash bond refunds early, to become familiar with the
system and to identify/rectify any gaps in data before the MRF
From 1 July 2014, it will be compulsory for all tenement holders
to register with the MRF and to complete environmental reporting
requirements as well as any levy payment each reporting year.
Regardless of whether or not you opt into the MRF, tenement
holders are obliged to rehabilitate their tenements in accordance
with all currently applicable laws and tenement conditions.
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