The Queensland government will undertake a targeted review of the Financial Provisioning Scheme in a bid to stimulate investment and unlock the full potential of the state’s resources industry.
The review will be led by the Department of Natural Resources and Mines, Manufacturing and Regional and Rural Development.
The review aims to strike a better balance between promoting resources sector exploration and managing the financial risks associated with environmental rehabilitation.
Currently, the scheme requires resources companies to provide financial security or pay annual contributions to a government fund to ensure mine site remediation costs do not fall on taxpayers if an operator abandons a site. However, the government has flagged concerns that existing settings may be constraining new developments.
Minister for Natural Resources and Mines Dale Last stated that the scheme has been a persistent point of concern for junior miners and explorers.
“This review will examine whether the current settings strike the right balance between supporting new and ongoing investment and managing the financial risk associated with rehabilitation,” Last said.
He added that the evaluation would ensure the scheme supports responsible development without constraining investment as Queensland pursues opportunities in critical minerals.
The government argues that stable operating environments, faster decision-making, and streamlined approvals are vital to restore investor confidence following what it described as the previous administration’s restrictive policies.
Treasurer David Janetzki said that the targeted review reflects the maturity of the scheme in supporting new investment.
“It is about striking the right balance between getting industry off the ground, protecting the environment and meeting community expectations,” Treasurer Janetzki said.
Once the targeted evaluation is finalised, the Department of Natural Resources and Mines, Manufacturing and Regional and Rural Development will collaborate with Queensland Treasury to take over direct administration of the scheme.
