Insights from the Statutory Review of the Mining Rehabilitation Fund (MRF)
This article summarises a Marsden Jacob presentation at the Energy & Resources Law Conference in September 2025. Presented by Philippa Short, the session explored key considerations for industry in regards to the decommissioning and rehabilitation of resources projects.
When the Mining Rehabilitation Fund Act 2012 came into effect, Western Australia became the first Australian jurisdiction to move from environmental bonds to a pooled levy model for managing mine rehabilitation liabilities. The MRF was designed to ensure the state has a secure, long-term source of funding to address abandoned or legacy mine sites – protecting the environment while reducing the state’s financial exposure.
Over a decade later, the Department of Local Government, Industry Regulation and Safety (LGIRS) engaged Marsden Jacob to undertake the statutory review of the Act, as required under Section 38.
The review was tabled in Parliament in April 2024 and assessed how effectively the Fund was operating to meet its purpose – to provide a sustainable funding source for mine rehabilitation and reduce the state’s exposure to financial risk. The review also explored opportunities to strengthen its effectiveness.
Our review findings
The MRF remains relevant and effective in supporting responsible mine closure and rehabilitation.
Stakeholders were broadly supportive but noted that incentives for progressive rehabilitation could be strengthened.
The review made 16 recommendations to enhance clarity, accountability, and the Fund’s responsiveness to changes in industry practice and risk. These included changes that would:
- Enable DEMIRS (now LGIRS) to better manage and minimise risks across all mining and resource operations in WA, reduce the likelihood and consequences of mine abandonment, and improve incentives for progressive rehabilitation.
- Streamline reporting processes and introduce mechanisms for regular monitoring and continuous improvement of the Fund.
- Provide operators with greater clarity on government expectations, acceptable rehabilitation activities, and standards of good practice.
- Make the MRF more responsive to the contemporary mining industry and changes in the operating environment as they arise.
Looking ahead
Key opportunities include:
- Expanding reporting to include State Agreement sites.
- Refining incentives for progressive rehabilitation – rewarding good practice and discouraging poor performance.
- Regularly reviewing the Fund to maintain transparency and public confidence.
The MRF continues to play a vital role in helping Western Australia manage rehabilitation liabilities effectively and responsibly. With targeted improvements, it can further support a mining sector that balances economic opportunity with environmental stewardship.
Read the full report here: wa.gov.au/system/files/2025-02/mrf_statutory_review.pdf
By Philippa Short and Alexander Marsden
