Financial Provisioning Scheme for resource activity environmental authorities

From 1 April 2019, financial assurance requirements for resource activities under the Environmental Protection Act 1994 were replaced with the Financial Provisioning Scheme (FPS) under the Mineral and Energy Resource (Financial Provisioning) Act 2018.

The financial assurance changes affect small scale mining tenure holders and all resource activity environmental authority holders.

If you hold a resource activity environmental authority (EA), you will need to know about the estimated rehabilitation cost (ERC) for an EA to understand how the FPS applies to you.

All financial assurance for resource activities are being transferred to the FPS throughout April 2019.

Small Scale Mining Tenure holders

You will continue to provide financial assurance (cash, bank guarantees, insurance bonds), known as 'surety', and will not be part of the annual assessment process.

If you are the 'relevant holder' (where there are multiple holders), and there is an increase in your surety (or it is a new tenure) the FPS will send you an invoice with:

  • the amount of surety required
  • a due date for payment of the surety
  • bank details for the electronic payment of cash surety (if you are providing cash)
  • information on how to lodge non-cash surety.

The FPS will contact you to organise any return of surety.

Read the documents in the legal obligations section below to understand what you are required to do and how you can provide surety.

EAs granted before 1 April 2019

ERC less than $100,000

You will continue to provide financial assurance (known as surety) equal to your ERC in the form of cash, bank guarantees and now with the added option of insurance bonds.

If you are the 'relevant holder' (where there are multiple holders) you will now receive surety invoices from the FPS for new or increased ERC values.

The FPS will contact you to organise any return of the surety.

Read the documents in the legal obligations section below to understand what you are required to do and how you can provide surety.

ERC more than $100,000

The Scheme Manager has 3 years to transition EAs into the FPS assessment process.

We will:

If you are the holder or relevant holder (where there are multiple holders), you will now receive an invoice from the FPS once the Scheme Manager has made the risk allocation decision.

The invoice will require payment of the assessment fee and a contribution to the financial provisioning fund and/or provision of surety.

Find out how the Scheme Manager assigns the relevant holder in the assigning an authority to a relevant holder guideline (PDF, 995KB).

Read the transitional arrangements information sheet (pre-commencement information sheet) (PDF, 1MB) for more information.

Read the guidelines in the legal obligations section below to understand what you are required to do.

Fees

If you hold an EA with an ERC of $100,000 or more, you will be charged an annual assessment fee.

Value of ERC Annual assessment fee
At least $100,000 and less than $1 million $250
At least $1 million and less than $10 million $1,250
At least $10 million and less than $50 million $5,000
At least $50 million and less than $100 million $22,500
$100 million and over $45,000

The amount of the assessment fee to be paid is set out in the Mineral and Energy Resources (Financial Provisioning) Regulation 2019 and is included in the risk category allocation information sheet (PDF, 1.6MB).

EAs granted from 1 April 2019

ERC less than $100,000

Your financial assurance payment, known as 'surety', will equal your ERC.

If you are the holder, or relevant holder (where there are multiple holders), we will send you an invoice including:

  • the amount of surety required
  • a due date for payment
  • bank details for you to make electronic payments (if you are providing cash)
  • information on how to lodge non-cash surety.

For information on providing surety, read the:

Read the transitional arrangements information sheet (PDF, 1MB) for more information.

Read the guidelines in the legal obligations section below to understand what you are required to do.

ERC more than $100,000

You may be required to pay a contribution to the financial provisioning fund or to provide financial assurance, known as 'surety', based on our annual assessment of your EA.

We will send you, as the holder or 'relevant holder' (where there are multiple holders), a letter about the assessment and request more information.

For information on the assessment process see the Forming the Scheme Manager's opinion guideline (PDF, 1MB), Requiring surety to preserve the financial viability of the Scheme Fund (PDF, 970KB) and the Risk category allocation information sheet (PDF, 1.6MB).

Find out how the Scheme Manager assigns the relevant holder in the assigning an authority to a relevant holder guideline (PDF, 995KB).

Following this assessment, we will send you an invoice including:

  • the amount of the contribution or the amount of surety required
  • a due date for payment
  • bank details for you to make electronic cash payments
  • information on how to lodge non-cash surety.

For information on providing surety, read the:

Read the transitional arrangements information sheet (PDF, 1MB) for more information.

Read the guidelines in the legal obligations section below to understand what you are required to do.

Fees

If you hold an EA with an ERC of $100,000 or more, you will be charged an annual assessment fee.

Value of ERC Annual assessment fee
At least $100,000 and less than $1 million $250
At least $1 million and less than $10 million $1,250
At least $10 million and less than $50 million $5,000
At least $50 million and less than $100 million $22,500
$100 million and over $45,000

The amount of the assessment fee to be paid is set out in the Mineral and Energy Resources (Financial Provisioning) Regulation 2019 and is included in the risk category allocation information sheet 1 (PDF, 1.6MB).

Legal obligations and supporting information

Read these information sheets, templates and guidelines to understand how to comply with the Mineral and Energy Resource (Financial Provisioning) Act 2018 (MERFP Act):

Mandated notification forms

The Act requires holders to notify the Scheme Manager in certain circumstances. The circumstances and relevant notification form to use are below.

  • Form FPS1 (DOCX, 100KB) – this form is to be completed by a holder, who has been allocated to a risk category and applies under s33 of the MERFP Act to the scheme manager for a proposed changed holder review allocation.
  • Form FPS2 (DOCX, 99KB) – this form is to be completed by a holder who has been allocated to a risk category, to give notice to the scheme manager under s42 of the MERFP Act that there has been a direct/indirect change of holder for an authority.
  • Form FPS3 (DOCX, 95KB) – this form is to be completed by a holder to give notice to the scheme manager under s43 of the MERFP Act that production in relation to an authority has ceased.

Contact

Financial Provisioning Scheme

For more information about the Financial Provisioning Scheme, phone (07) 3035 3551 or email FPS@treasury.qld.gov.au.

EA and ERC enquiries

For all EA and ERC enquiries, contact the relevant business centre for your resource activity.

Small Scale Mining Assessment Hub

Phone: (07) 4987 9350
Email: SSMHub@dnrme.qld.gov.au

Petroleum and Gas Business Centre

Phone: (07) 3330 5715
Email: EnergyandExtractive@des.qld.gov.au

Minerals Business Centre

Phone: (07) 4222 5352
Email: ESCairns@des.qld.gov.au

Coal Business Centre

Phone: (07) 4987 9320
Email: CRMining@des.qld.gov.au

More information

Read about reforms to improve rehabilitation and financial assurance outcomes in the resources sector.