HAWTHORN RESOURCES —
PINJIN PASTORAL STATION
924. Hon ROBIN SCOTT to the minister representing the
Minister for Mines and Petroleum:
Subsequent to question without
notice 897, I again refer to mining leases 31/79, 31/284 and forfeiture 536709,
recorded on 27 September 2018.
(1) Can the
minister explain the reasons and factual circumstances, including dates, that
the department was able to identify that Hawthorn Resources had not taken all
reasonable measures to prevent or minimise the generation of dust from all
materials handling operations, stockpiles, open areas and transport activities
in noncompliance with condition 21 on mining lease 31/79?
(2) Can the
minister explain why a penalty of $40 000 was chosen and determined rather than
a higher penalty?
(3) Can the
minister state how much money in gold royalties was owing by the holders and
how this figure was derived and calculated for the June 2018 quarter to justify
the issuing of forfeiture notice 536709?
(4) Can the minister explain why no
penalty has been imposed on mining lease 31/284?
Hon DARREN WEST replied:
I thank the honourable member for
some notice of the question. I provide the following answer on behalf of the
Minister for Regional Development representing the Minister for Mines and
(1) Following a detailed
investigation, the minister received a recommendation from the Department of
Mines, Industry Regulation and Safety on 16 August 2018 regarding the breach of
condition 21 and options available to me for decision. DMIRS had previously
issued a direction to modify to the tenement holders on 24 November 2017 to
improve dust management, which was actioned by the tenement holders.
(2) Section 97 of
the Mining Act 1978 permits the minister to impose a penalty of up to $150 000
on a company for a breach of tenement condition. DMIRS' resource and
environmental compliance enforcement panel determined the breach justified a penalty,
with the penalty being at the discretion of the minister. Based on the
information provided to the minister by DMIRS, which included factors that led
to the breach, the minister chose to impose a penalty of $40 000.
(3) DMIRS has a long
established practice of not disclosing the specific royalty payments of
individual companies. The royalty rate is calculated at 2.5 per cent of the
royalty value of the gold metal produced.
(4) With respect
to forfeiture 536709 on M31/284 relating to noncompliance with royalty
provisions, DMIRS has issued only a notice
of intent to forfeit in accordance with regulation 50 of the Mining Regulations
1981. DMIRS is still in the process of determining whether a penalty
will be imposed for late royalty payment in accordance with established