Cobby, G 2006, 'Review of Environmental Performance Bonds in Western Australia', in AB Fourie & M Tibbett (eds), Mine Closure 2006: Proceedings of the First International Seminar on Mine Closure, Australian Centre for Geomechanics, Perth, pp. 75-80, https://doi.org/10.36487/ACG_repo/605_Cobby
(https://papers.acg.uwa.edu.au/p/605_Cobby/)
Abstract: The Western Australian government has initiated a review of the environmental performance bond system to 
consider the adequacy of current regulatory policies and processes. Environmental performance bonds or 
mining securities serve to protect a State from financial liability should a mineral tenement owner fail to 
comply with mine site rehabilitation requirements.  
The review will determine whether alternate financial instruments such as insurance could optimise 
flexibility for the minerals industry whilst maintaining acceptable levels of financial risk for the State and the 
Minister. This paper provides information about the existing financial assurance system used in Western 
Australia. It describes the review objectives and considers current regulatory policy.  
As of June 2006, Australian government agencies collectively administer around A$2.0 billion in mining 
securities. The Western Australian Department of Industry and Resources (DoIR) administer A$480 million 
in performance bonds and securities and regulate around 500 active mine sites. The amount of mining 
security held is estimated to be 25% of the total cost of rehabilitation. By contrast, the Queensland 
government administer around $785 million for approximately 100 mine sites. The Queensland government 
hold securities for around 50% of the total cost of rehabilitation. Other Australian jurisdictions hold 
securities representing 40-50% of the total cost of rehabilitation (Table 3).    
Western Australia regulate the majority of Australian mine sites yet the value of securities held for mine site 
rehabilitation is significantly less than those required in other States. The Western Australian government 
appears to be accepting a higher level of financial risk exposure than other States and Territories. The review 
will consider whether the current regulatory policy provides the State with adequate financial protection.  
A working group of industry, government and community representatives has been formed to provide 
recommendations to the Minister. The review is scheduled for completion in 2007.