The WA government's independent watchdog says departments tasked with policing the state's mining operations "did little to deter operators breaching conditions" after staff were moved away from compliance efforts at the height of the pandemic.
In her latest report, Auditor General Caroline Spencer considered how effective the Department of Mines, Industry Regulation and Safety (DMIRS) and the Department of Water and Environmental Regulation (DWER) were at keeping tabs on the state's miners.
She found that despite the significant risks associated with the resources sector, the departments "do not have an effective understanding of how well operators follow their conditions".
Part of that comes down to both departments conducting fewer inspections, despite growth in the mining sector, with DWER conducting none in the state's north last financial year.
"As a result, entities have a limited understanding of operator compliance and are less likely to identify potential environmental risks," Ms Spencer said.
"DMIRS and DWER are not fully effective in ensuring mining projects comply with conditions to limit environmental harm and financial risks to the state," the report found.
"Their monitoring and enforcement currently provide a narrow view of operator compliance and do little to deter operators from breaching conditions."
Growth in mines, but drop in inspections
According to the report, the number of mining projects in WA has grown by more than 12 per cent over the past five years, with about 1,100 mine sites across the state.
But for both departments, the number of planned inspections has fallen over that time.
Even with those reduced targets, DMIRS did not complete its planned program once over the past five years, while DWER has not since 2018-19.
"Entities also rely heavily on operator self-reported information with minimal independent verification, and records are not centrally managed," Ms Spencer said.
"As a result entities have a limited and siloed understanding of operator compliance and are less likely to identify potential environmental risks to constructively target their regulatory efforts."
The report was critical of DWER's lack of oversight in the state's north last year.
"Its planned program included only one site inspection in the north and this was not conducted," the report reads.
"This reduces DWER's regulatory presence in areas of higher activity and its awareness of non-compliance in the more remote portions of WA where most mining occurs."
Ms Spencer noted that while COVID had impacted the ability of both departments to complete their work, moving staff to prioritise the approval of projects had come at a cost.
"While such a diversion of effort may be necessary and possible for a short period, it is critical entities restore their compliance activities as part of delivering a balanced regulatory framework," she said.
In a statement, DWER saId it was "taking steps to address a number of the matters raised" in the report.
"These initiatives include a whole-of-department internal audit of the compliance and enforcement framework we implement across all our regulatory activities," the statement said.
"We also noted that COVID-19 has impacted our services, compromising the ability of our officers to travel and undertake planned compliance activities.
"Our services have also been impacted this year by the competitive labour market across Western Australia."
Mining essential to get country through COVID: Minister
In a statement, Mines and Petroleum Minister Bill Johnston said "supporting responsible mining environmental management and compliance" was a priority of the government.
"Keeping our mining industry operating was essential for the state and the nation's economic recovery following the pandemic, and some compliance activities had to be done differently to adhere to restrictions under the state of emergency," he said.
"Our focus will now return to building upon our high standard of mining environmental regulation and ensuring Western Australia remains a responsible and sustainable resource producer."
Lack of penalties
The report highlighted a number of instances which it said showed a "lack of penalty and deterrence".
In one, DMIRS took no action against an "established operator" who in 2021/22 disturbed land outside approved areas, undertook "improper construction" and did not clean oil spills in a timely manner.
DWER also did not act against what the report described as an "established operator" who had "built a number of wastewater treatment plants over several years without approval".
"The operator noted that waiting for approval would have delayed operations. DWER issued a letter of warning and retrospectively approved the plants," the report reads.
Both departments were also criticised for being slow to take action against breaches, with DMIRS having 40 unresolved potential breaches on its books for more than six months, with two waiting nearly two years to be resolved.
DWER had 13 unresolved medium- to high-priority incidents which had been open for between seven months and three years.
"If entities do not consistently and adequately enforce conditions, especially for high risk operations, operators may be less deterred from breaching them," the report noted.
The Auditor-General made seven recommendations with all being accepted by both departments.
The recommendations include:
- better verification of self-reported information,
- considering whether to publicly release information about non-compliance, and
- prioritising plans to restore compliance.
Regulation impacted by COVID: DMIRS
DMIRS executive director of resources and environmental compliance, Karen Caple, said the organisation was committed to the effective regulation of the resources industry.
Ms Caple said COVID-19 impacted the department's ability to conduct onsite environmental compliance activities, however, it had continued delivering its risk-based compliance regime by using "desktop" approaches.
She said DMIRS' planned compliance activities were only one part of its broader program to keep an eye on miners.
"To support its risk-based compliance program, DMIRS commits to fewer planned compliance activities, allowing capacity for unplanned or responsive compliance activities to respond to emerging compliance issues," she said.
When planned and responsive activities were added together, there had been an upward trend of compliance activity over the last five years, with the exception of COVID-impacted years.
"This is evident, with a 48 per cent increase in total completed compliance activities in the years prior to COVID, between 2017-18 and 2019-20," she said.
Mining lobby calls criticism 'deeply unfair'
In a statement, the Association of Mining and Exploration Companies praised both departments, and said that "to judge any department on business-as-usual standards during this extraordinary period is deeply unfair".
"During COVID-19, the mining and mineral exploration industry helped Western Australia stave off a recession that would have had disastrous economic and social consequences for West Australians.
"Any claim that this was achieved at the expense of the environment is simply untrue."
Chamber of Minerals and Energy (CME) chief executive Rebecca Tomkinson said the sector is committed to maintaining appropriate standards of environmental management through avoidance, mitigation and progressive rehabilitation.
"Despite the challenges brought on by COVID-19, the industry worked hard and collaborated with government departments to safely maintain continuity of operations, including ensuring environmental outcomes and strict compliance with regulation," she said.
