Antinuclear

Lock the Gate accuses state government of placing interests of mining sector over those of taxpayers   New South Wales taxpayers could be shortchanged up to $500m by a state government “accounting trick” that allows mining companies to dodge paying appropriate contingency costs for site rehabilitation.A 2017 report by the NSW auditor general found that security deposits paid by miners for future rehabilitation were inadequate and made several recommendations, including that the “contingency” costs be increased.

Though not part of the formal recommendation, the report said contingency costs should range from 25% to 50% (of the estimated total rehabilitation cost).

The environmental group Lock the Gate has obtained a letter, through Freedom of Information, that shows the NSW Department of Planning and the Environment told a parliamentary committee last year it had accepted all of the auditor general’s recommendations, and that it had already increased contingency costs.

The department told Guardian Australia this week it had increased “contingencies” to 30%. But it later clarified that figure included “contingency” and two other metrics – project management costs and post-project environmental monitoring – which were dealt with separately by the audit.

The amount for “contingency” remains at the previous level of 10%.

Rick Humphries, the mine rehabilitation coordinator at Lock the Gate, said the new arrangements were “an accounting sleight of hand” that had the effect of not forcing mining companies to meet the standards outlined by the audit….. https://www.theguardian.com/australia-news/2019/feb/14/nsw-accounting-trick-lets-miners-dodge-appropriate-rehabilitation-costs