Mining corruption claims grossly misleading

Minister for Natural Resources and Mines, Andrew Cripps, labelled as ludicrous claims from the Queensland Resources Council that a new competitive cash bidding system for highly prospective coal and gas tenure in Queensland is open to “corruption”.

Mr Cripps said the QRC is clearly unhappy that resource companies will have to pay to explore in Queensland’s most resource-rich areas, and is using alarmist tactics in an attempt to discredit the new system.

“The Newman Government is proposing a competitive cash tender process for the allocation of exploration rights for some of Queensland’s best coal and petroleum and gas reserves,” said Mr Cripps.

“Companies will still have to prove they have the capacity to develop the resources in a timely fashion, and will need to demonstrate their commitment by participating in a cash bidding process for that land.  

“The system will ensure all Queenslanders enjoy a financial return from the development of the state’s most valuable resource areas and will discourage the past practice of companies ‘warehousing’ tenure.”

Mr Cripps emphasised that cash-bidding would only apply to the most highly-prospective resource tenure in Queensland.

“It is very important that industry understands that greenfield sites will continue to be released through non-cash competitive bidding processes to ensure ongoing opportunities for smaller exploration companies to identify and develop resources in Queensland,” he said.

Mr Cripps dismissed criticism from the QRC that this sensible reform to tenure allocation in Queensland could lead to practices of the type currently under investigation by the New South Wales Independent Commission Against Corruption (ICAC).

“I’m extremely disappointed with the QRC’s misleading comparisons between the NSW system and the system we are about to introduce in Queensland.

“The QRC isn’t telling you that the Queensland model prevents the Mines minister of the day from having any influence whatsoever over the tender process, and will involve the appointment of an external independent probity adviser.

“Importantly, our model will not allow for the Minister to directly allocate tenure as is the case in NSW.

“The rights to explore highly prospective coal and petroleum and gas tenure will be allocated through an open, transparent and competitive process with no political interference.”

The Mining and Other Legislation Bill 2012 proposing the competitive cash tender process has been referred to the Parliamentary Committee for Agriculture, Resources and Environment.

[ENDS] 25 January 2013

Media contact: Jane Paterson 0417 281 754 or Paul Sutherland 0428 868 237