Maintain mining rehabilitation bonds + closure plans
State mining regimes require financial assurance bonds for site rehabilitation.
Who must comply
Holders of exploration licences, assessment leases and mining leases. In NSW this applies to every title, from small exploration programs to large mines that also need an environment protection licence; the Resources Regulator publishes assessed deposits for large mines.
What triggers it
Grant of an exploration or mining title, any increase in disturbed area, and the regulator's periodic reassessment of the deposit.
When due
Deposit lodged as a condition of the title and topped up when the assessed amount is varied. For mining leases in NSW, a rehabilitation cost estimate is provided annually with the mine's forward program.
Evidence required
Rehabilitation cost estimate prepared with the current regulator tool and lodged through the Resources Portal; security deposit lodgement records and the title's deposit condition; annual forward program; disturbance mapping; rehabilitation completion and sign-off records supporting release of the deposit.
Max penalty
The security deposit is held so that rehabilitation costs fall on the deposit, not the State, if the title holder defaults on its rehabilitation obligations; it is returned only when rehabilitation is signed off. The NSW Resources Regulator is responsible for compliance and enforcement across the mining sector, including enforceable undertakings under the Mining Act
Who must comply with this? The applicability test by industry, business structure and size.
Summary
Mine rehabilitation financial assurance is set by each state's mining law, not by a single national rule. New South Wales is the worked example here. Under the Mining Act 1992 (NSW), every exploration and mining title holder must lodge a security deposit with NSW Resources that covers the full cost of rehabilitating the land the activity disturbs, so the State does not carry the liability if a title holder defaults. The title holder estimates rehabilitation cost using the Resources Regulator's rehabilitation cost estimate tool; inspectors then assess actual or proposed surface disturbance to fix the assessed deposit, and the security deposit condition on the title is varied so the correct amount is held. Deposits are reassessed over the life of the project, and some or all of the deposit is returned once rehabilitation is completed and signed off. Other states run their own schemes with different mechanics.
Enforced by
Industries
Topics
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Frequently asked questions
- Who must comply with mining rehabilitation bonds + closure plans?
- Holders of exploration licences, assessment leases and mining leases. In NSW this applies to every title, from small exploration programs to large mines that also need an environment protection licence; the Resources Regulator publishes assessed deposits for large mines.
- What triggers mining rehabilitation bonds + closure plans?
- Grant of an exploration or mining title, any increase in disturbed area, and the regulator's periodic reassessment of the deposit.
- When is mining rehabilitation bonds + closure plans due?
- Deposit lodged as a condition of the title and topped up when the assessed amount is varied. For mining leases in NSW, a rehabilitation cost estimate is provided annually with the mine's forward program.
- What is the maximum penalty for mining rehabilitation bonds + closure plans?
- The security deposit is held so that rehabilitation costs fall on the deposit, not the State, if the title holder defaults on its rehabilitation obligations; it is returned only when rehabilitation is signed off. The NSW Resources Regulator is responsible for compliance and enforcement across the mining sector, including enforceable undertakings under the Mining Act
- What evidence is required for mining rehabilitation bonds + closure plans?
- Rehabilitation cost estimate prepared with the current regulator tool and lodged through the Resources Portal; security deposit lodgement records and the title's deposit condition; annual forward program; disturbance mapping; rehabilitation completion and sign-off records supporting release of the deposit.
Source: https://www.resources.nsw.gov.au/resources-regulator/mine-rehabilitation/determining-a-rehabilitation-security-deposit. Rules Mate is not a law firm. Always verify against the live regulator source before acting.