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Three mine lessees owe US$13.7 million in penalties for unrehabilitated land - audit

Prince Moore reports
 
Auditor General Pamela Monroe Ellis has disclosed that three mine lessees owed penalties to the Mines and Geology Department (MGD), totalling US$13.7 million, for failing to rehabilitate 264.14 hectares of mined-out land.
 
This was at December 2025.
 
The finding was outlined in a performance audit tabled in Parliament on Tuesday, which assessed whether MGD's licensing, monitoring, and enforcement arrangements were effective in supporting orderly and compliant mining and quarrying operations for the period 2019-20 to 2023-24.
 
The Auditor General said of the 264.14 hectares of mined-out land, one lessee accounted for 169.68 hectares or 64 per cent of the area not yet rehabilitated and US$9.89 million or 72 per cent of the total monetary exposure.
 
The weaknesses in enforcement were linked to the absence of a single auditable rehabilitation register, non-use of the security deposit mechanism during the review period, and the absence of finalised rehabilitation guidelines for quarries.
 
Mrs. Monroe Ellis said the MGD could not demonstrate that all lease renewals were supported by the required information.  
 
She said this reduced assurance that operators had the financial capacity to meet their obligations and that Government had adequate protection, through the security deposit, against future rehabilitation or restoration costs.
 
The Auditor General reported that the long-outstanding rehabilitation obligations remained unresolved, and MGD could not demonstrate that the polluter-pays principle set out in the mining regulations was being effectively enforced.
 
For years, some Members of Parliament in constituencies where significant mining takes place have complained bitterly that large areas which have been mined-out remain in that state for extended periods without rehabilitation by the companies responsible for the mining.
 
In the meantime, the Performance Audit found that one mining operator continued activities for approximately six years after the collapse of the mining lease and six quarry operators continued operations after their quarry licences had expired.
 
The Auditor General said five of the operators submitted renewal applications between 30 and approximately 607 days after expiry, while one submitted no renewal application.
 
This was in contravention of the Mining and Quarries Control Acts which require operators to hold a valid mining lease, prospecting licence, or quarry licence at all times, with renewal applications submitted within the timeframe prescribed by the relevant regulations to permit continued operations pending renewal. 
 
Mrs. Monroe Ellis said the Mines and Geology Department did not consistently issue reminder notices before licences ended or take timely enforcement action after expiry.
 
She said continued operation beyond the authorised licence period weakened the licensing regime, reduced the deterrent effect of enforcement, and increased risks related to revenue collection, environmental oversight, and public confidence in the regulatory system.
 


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