The government of Western Australia will speed up applications and overhaul its environmental assessment process to allow more businesses and projects critical to the energy transition. However, conservation groups say the decision poses serious threats to the environment.
Under the changes, the state environment minister will be able to fast-track decisions on significant projects. It also allows approval processes to run at the same time as environmental approvals instead of afterwards.
The state’s Premier, Roger Cook, announced the updates on Tuesday during a business breakfast in Perth. The announcement came after the former State Environmental Protection Agency lead, Paul Vogel, did a quick review of the process and found that the system “was bogged down.”
“It’s not guaranteed approval, but it is a guaranteed decision,” Premier Cook said.
To fortify the reforms, the government allocated an additional AUD$18 million in funding.
The Association of Mining and Exploration Companies (AMEC) welcomed the decision and said that it boosts business opportunities in Australia’s largest state when they are needed the most.
“It tells government departments, companies, investors and the world there is opportunity in the energy transition and the time to seize that opportunity is right now,” AMEC CEO Warren Pearce said.
However, it’s crucial to note that the industry is not seeking shortcuts in environmental approvals but rather timely decisions, Pearce explained.
“If implemented correctly, the proposed changes, with appropriately experienced leaders making key decisions, will ensure sustainable development into the future and kickstart new projects waiting for a green light,” he said.
A recent study by the Chamber of Commerce and Industry WA showed that “green tape” was costing the state AUD$318 billion in investment projects and jeopardizing 106,000 jobs.
This morning Premier @RogerCookMLA announced that the green tape around environmental approvals will be lifted in WA.
The Premier mentioned he "needs WA to lead the game" during this energy transition.
Read more: https://t.co/mppCnCvhr9#environment #greentape #approvals pic.twitter.com/rafvQjNYuF
— AMEC (@amec_org) December 12, 2023
Changes are radical and lack consultation, says conservation council
The Conservation Council of Western Australia says the changes are radical and lack consultation with key parties.
“We call on the Premier to commit to a genuine consultation process before going any further,” President of the Conservation Council of WA Richard Yin said.
The council said the changes undermine the integrity of the environmental assessment process and the independence of the Environmental Protection Authority (EPA).
Yin said there are some changes on the fringes that he agrees would make sense, including the ramp-up of funding for the EPA and finding ways to retain and attract its hardworking staff.
“There are much smarter ways to help facilitate better assessment processes for genuine renewables projects than a reform agenda that appears to be a Trojan Horse to enable the big end of town to wield even more influence,” he said. “It’s business as usual on steroids.”
Read more: Australia’s 2023 International Mining and Resources Conference celebrates 10 years
Read more: Rio Tinto launches $132M research centre for sustainable critical minerals extraction methods
Australia’s permitting process for opening up a mine. Graph via “The mining permitting process in selected developed economies” via ScienceDirect.
Why does it take so long?
The state mandates ecologically sustainable practices for all exploration and mining activities. Positive community relationships are also a top priority.
To obtain a mining lease, the Environment Division of the Department of Mines and Petroleum rigorously approves the mining proposal. The Executive Director of the Geological Survey sanctions the mineralization report, making it a binding condition for the granted mining lease.
Before initiating mining activities, the Department of Environmental Regulation grants approvals for construction and operational licenses. Finally, compliance with the Planning and Development Act requires obtaining a building license for any associated structures.
Western Australia is the world’s largest iron producer
Western Australia’s economy relies on mining as well as oil and gas. The state produces 46 per cent of Australia’s exports and is the largest iron ore producer in the world. It also supplies the world with half of its lithium, currently in demand as it is an essential component for electric vehicle batteries.
The need for metals and minerals necessary for renewable energy increased the demand for more mining projects. Leading companies operating in the region calling on the government to be behind other mining-leading countries such as the United States and Canada.
Leading operators in Western Australia include Rio Tinto (ASX, LON) (NYSE:RIO), BHP Group Ltd (NYSE: BHP), Fortescue Metals Group (ASX: FMG) (OTC: FSUGY) and Mineral Resources Ltd. (ASX: MIN).
A study by the Grattan Institute found that critical minerals offer over AUD$400 billion to Australia’s economy by 2050 under the right policies.
natalia@mugglehead.com
