The Queensland Government has opened consultation on its review of the resources industry financial provisioning scheme (FPS).
Queenslanders will be able to provide feedback on the state’s FPS and recommendations that may enhance the scheme or support investment while managing financial and rehabilitation risks.
Consultation opened on Tuesday 1 September.
Feedback will be sought from industry, investors, landholders, and the community, allowing the public to assess whether the scheme is fit for purpose during a time of heightened investment and growth opportunities.
The scheme was first introduced in 2019. The Queensland Government says the state’s resource industry has changed significantly since the scheme’s introduction, with “evolving investment models, changing ownership structures, and increasing participation from smaller and mid-tier operators”.
Minister for Natural Resources and Mines Dale Last says the consultation will ensure the review of the scheme is informed by the mining sector.
“We have opened public consultation for the review of the financial provisioning scheme to ensure Queensland’s policy settings keep pace with our rapidly evolving resources sector,” Last says.
“I want Queensland to be the epicentre of global critical minerals development and that requires policy settings that work as hard as our industry does.
“The FPS has a significant impact on investment decisions and future development, and I continue to hear firsthand of the limitations it causes for junior miners and explorers.
“This review presents an opportunity to hear from Queenslanders to ensure our state remains a resources powerhouse while balancing strong environmental safeguards and support for regional communities.”
The Association of Mining and Exploration Companies (AMEC) CEO Warren Pearce says companies should provide feedback during the consultation period.
“Industry feedback will be critical to ensuring the scheme delivers the right balance between environmental protection and economic growth,” Pearce says.
“AMEC encourages companies to share their experiences, particularly where FPS settings or rehabilitation surety requirements have affected investment decisions.
“Queensland’s current FPS settings can place a significant financial burden on smaller operators and developers transitioning from exploration to production.
“This review is an opportunity to ensure the scheme better reflects risk and project scale, without creating unnecessary barriers to investment, development, and job creation in regional Queensland.”
Metro Mining (ASX:MMI) CEO Simon Wensley says the review was welcome news for the industry.
“Exploration companies and junior and mid-tier miners are crucial to growing Queensland’s mining operations. However, the FPS can place a disproportionate financial burden on these businesses at a time when capital is most critical to project development and growth,” Wensley says.
“Funds that could otherwise be invested in exploration, Feasibility Studies, project development, and job creation are tied up in meeting scheme requirements.
“Metro Mining welcomes the Queensland Government’s review of the FPS. This review presents an important opportunity to ensure the scheme continues to achieve its objectives while better supporting investment, innovation, and the development of the next generation of Queensland mining projects.
“This is a positive and timely initiative that demonstrates the Government’s commitment to ensuring Queensland’s regulatory frameworks remain effective, competitive, and fit for purpose.”
Last month, Metro Mining increased its waste stripping volumes by 140% year-on-year at the Bauxite Hills mine in Far North Queensland after investing in additional equipment and productivity improvements.
The Bauxite Hills mine is a single operating mine located 95km north of Weipa in western Cape York. The mine covers 825km2 and has an estimated reserve of 77.7 million tonnes and a total resource of 114.4 million tonnes.
Write to Maddison Elliott at Mining.com.au
Images: Metro Mining
