DMIRS has released the Mine Rehabilitation Fund Data along with interesting statistics that can been seen in the report.
The data itself is a wealth of information and when joined with other tenement data in LandTrack Systems product LandTracker produces very interesting statistics.
- Of the 264,600,000 hectares in WA only 138,203 is disturbed for the purpose of mining and exploration
- That is %0.037 of the area of WA is disturbed for the purpose of exploration and mining.
- Of that 24,000 hectares is transport corridors and
- There are 289 hectares of workshops.
If we look the statistics of a couple of sites and companies that are in the news at the moment using the following calculation.
Disturbance = (Disturbance hectares) x (Category Unit Rate) + ((Land Under Rehabilitation hectares) x (Category E ($2,000))) = Rehabilitation Liability Estimate (RLE)
MRF fee payable annually is 1% of the RLE
These calculations are relative easily and quickly arrived at (less than 5 minutes) by using LandTracker.
Boddington Mine only has a Rehabilitation Liability Estimate of $142,901,240 and pays $1,429,012 in MRF fees per year. It has 173 hectares of tailings under rehabilitation, which reduces the RLE by $8.6M.
Looking at the MRF data for Panoramic Resources is topical at the moment because Independence Group (IGO) has launched a hostile takeover. We can determine the extent of the environmental liability that IGO may inherit.
Panoramic Resources has a Rehabilitation Liability Estimate of $15,357,500 and $153,575 in MRF fees. Estimating environmental liability is now such a simple exercise if companies are reporting corectly.
Saracen’s 50% purchase of KCGM
Looking at the purchase by Saracen from Barrick of 50% of the Super Pit (held in the name of KCGM), KCGM has $103,251,000 Rehabilitation Liability Estimate and pays 1% of this amount for the MRF. Barrick’s share of this is 50%; a rehabilitation liability of $51,625,500. Barrick with the $1.1 billion sale price are ridding themselves of a significant liability.