The regulatory landscape for the minerals sector in Australia is complex, with multiple jurisdictions playing a role (The Productivity Commission, 2020[2]). The Constitution gives the central government exclusive power to make laws on a limited number of matters within the jurisdiction of the Commonwealth. This applies to defence, foreign affairs, environmental matters of national importance, certain aspects of cultural heritage, and Commonwealth lands or waters beyond certain distance limits. In addition, the Australian Commonwealth Government administers offshore mineral and petroleum exploration policy through the Offshore Minerals Act 1994 and the Offshore Petroleum Petroleum Legislation. On the other hand, states have the power to regulate when the Commonwealth has no direct influence. Since ownership of onshore and offshore minerals and gas remains the responsibility of states and territories, they regulate mining activities in their own territories. This chapter provides an overview of mining regulatory regimes in three OECD member countries: Australia, Chile and Mexico. Each case study explains the institutional and regulatory framework that underpins the mining sector in each jurisdiction. In particular, this section details the regulatory structures and governance mechanisms of the regulator(s). In addition, the chapter discusses the regulatory tools used by mining regulators in the three countries. This case study focuses on two main aspects of the mining industry in Chile: its key institutions and the use of regulatory policy instruments for the sector. The National Productivity Commission conducts ad hoc reviews of the country`s main economic sectors with a view to making recommendations to improve national productivity. These reviews complement administrative simplification measures and offer a process perspective that goes beyond specific procedures or formalities.
In 2020, the Commission published a review of the quality of regulation of key sectors in Chile, including mining. The report includes specific recommendations to improve response times and eliminate overlaps between institutions (e.g. SERNAGEOMIN and the Directorate General of Water), as well as to highlight barriers to compliance due to regulatory requirements (Comisión Nacional de Productividad, 2020[17]). Xueli, J., & Xiaohui, Z. (2004, November 13). Coal mining: the deadliest job in China. China Daily. From www.chinadaily.com.cn/english/doc/2004-11/13/content_391242.htm (Xueli & Xiaohui, 2004) Extraction, extraction and transportation of minerals, waste rock, products and by-products in the industrial mining district Table 5.6 summarizes the activities corresponding to each of the government agencies responsible for mining policy in Mexico. Each state (and territory) has its own legal framework for granting rights, permits, licences or leases for exploration.
Subnational schemes also include the payment of fees to the State and compensation to owners or users. A number of Commonwealth laws (environment, employment, foreign ownership and national title) govern the commissioning of a mining project. The following subsection outlines the key governance features of the resource regulator in New South Wales. Calendars provide information on the length of regulatory processes. They also focus on regulators` attention and public reporting on regulators` performance in meeting these timelines. Western Australia and South Australia report the proportion of mining projects and other permits completed on time. On the other hand, the DGM develops sectoral, institutional, regional and special programs in the mining sector. In addition, it is responsible for requesting and managing information on the production, income and destination of minerals, geology of deposits and ore reserves, as well as all economic and accounting reports of mining and metallurgical companies in the country. OHSAS 18001 certification has been used to develop occupational health and safety management systems in companies. This internationally recognised system was born in 1999 from the UK`s Occupational Health and Safety Advisory Services (OHSAS) and has been implemented by companies around the world. The OHSAS 18001 checklist addresses issues such as worker awareness of emergency procedures and the availability of water in the workplace, but unlike ISO 14001, it does not quantitatively specify how these procedures should be implemented (Sparey, 2010).
Legend: Number of deaths due to all mining accidents in China and the United States from 2000 to 2010. Data adapted from www.msha.gov/stats/charts/chartshome.htm. However, this downward trend in mining accidents is limited to the most developed countries. On average, the mortality rate per tonne of materials extracted is lower in developed countries than in developing countries. For example, China reported 0.849 deaths per 1 million tons of coal in 2009, compared to 0.02 deaths per 1 million tons of coal in the United States („U.S. coal mining,“ 2011). It is important to ensure a safe working environment for miners, because if more mines are opened, more health problems will arise. The best regulatory approaches require regulators to set clear, evidence-based policy objectives while placing the least possible burden on business. Nevertheless, the situation in Australia`s mining sector still presents opportunities, as regulatory requirements throughout the life cycle of mining projects create administrative burdens, costs and barriers for investors and lead to negative externalities for citizens and the environment. This is why the Productivity Commission carried out an ex-post evaluation of the regulatory framework to identify the main challenges, opportunities and best practices to promote effective regulatory implementation (2020[2]). As part of this audit, the Commission established a number of assessment criteria to determine the best regulatory approaches for the sector (Table 5.2).
In order to improve the working conditions of miners, the International Labour Organization introduced the Safety and Health in Mines Convention in 1995 (International Labour Organization, 1998). However, as of November 2012, only 26 countries had ratified the convention, and this list of countries does not include powerful mining countries such as China, Chile and Australia. The Mining Act of 1992 is the primary regulatory tool for mining operations in the state. The Act describes the objectives of the regulation and sets out rights, permits, restrictions and extensions. It also includes guidelines for dealing with unlicensed mining activities, social provisions, leasing programs, and coordination with government agencies. The Act also provides a framework for management plans, audits, environmental audits and charges (New South Wales Government, 1992[6]). At the time of writing, NSW-RR has conducted a public consultation (until November 2020) to gather feedback on the standard conditions for mining leases under the Mining Act (NSW Government, 2020[7]). As a specialized organization, SGM advises, supports and certifies mining projects and integrates a portfolio of projects. In addition, it must locate exploration targets and projects, propose competitive areas, promote agreements and provide consulting services in mineral exploration and evaluation.
In the mining sector, measures to simplify administrative rules and sectoral assessments of regulations have motivated regulatory measures. While these efforts are welcome, there is room for improvement, particularly with regard to overlapping licensing and regulation between institutions. SERNAGEOMIN and the Environmental Assessment Service have taken steps to digitize processes and formalities. In addition, both companies provide guidance on how to use existing digital tools, reducing the time business representatives and citizens spend understanding and complying with requirements. NSW-RR`s primary focus is on compliance activities in the New South Wales mining sector, including compliance with the Mining Act and the regulation of safety and health performance in mines and oil sites. The New South Wales Resource Regulator`s Strategic Approach 2017-2020 identifies the following priority areas for the sector (NWS Resources Regulator, 2017[4]): The Directorate General of Mining Development (DGDM) aims to develop the mining sector through measures that promote investment and competitiveness with a sustainable vision. DGDM is responsible for disseminating economic information on the Mexican mining industry as well as analyzing the sector. It also establishes cooperation and coordination links with private sector organizations to carry out joint actions to promote mining and regional development.