Pledge to speed up approvals for mining projects
Oman’s Ministry of Environment and Climate Affairs (MECA) has initiated steps to revamp its environmental licensing and permitting procedures with a view to making them more “facilitatory” to mining development and mineral processing investment in the Sultanate.
The move, according to a high-level official, is the centrepiece of a new policy framework that aims to address a broad swathe of environment-related issues associated with mining and extractive industrial activities in the Sultanate.
On the anvil is an all-encompassing regulatory framework underpinned by, among other things, amendments to existing environmental legislations, potentially new statutes, planning controls, a new liability regime, and greater clarity on the roles and responsibilities of stakeholder agencies, said Prof Steve Halls, Senior Environmental Expert, MECA.
“It is clear that the challenges the mining industry faces, particularly from the standpoint of the approvals and permitting processes, have perhaps not impeded, but neither have been facilitatory in moving projects forward. At MECA, we are trying to adopt a different approach; we are trying to be more pragmatic and find solutions by working together with the industry to address the environmental challenges that may arise as a result of mining projects,” the expert stated.
Speaking at the Oman Mining & Minerals Exhibition & Conference last week, Prof Halls said the proposed regulatory framework will stipulate measures to prevent pollution and contamination of land, as well as guidelines for the closure and rehabilitation of mines. Additionally, it will set out mechanisms to identify, record, investigate, manage, remediate and report on pollution, he pointed out
Importantly, the credo ‘The Polluter Pays’ will remain a key guiding principle of MECA’s approach to environmental conservation and safety, the expert stressed.
“Where you can’t prevent pollution, you must minimise the impact through management procedures; And if you fail to comply, then the polluter pays; and (depending upon the gravity of the offence) it could be minimal or a substantial financial fine or even a suspension of the permit.”
Alongside a proposed ‘hierarchy of penalties’, the new framework will also weigh a range of incentives for investors and operators, said Prof Halls.
These are likely to take the form of bonds, reduction in the bond requirements, mechanisms for profit enhancement, financial sops for remediating mine purposes, and so on.
Long a demand of the mining. industry, the drive to revamp environmental licensing processes comes against the backdrop of efforts spearheaded by Tanfeedh (The National Programme for Enhancing Economic Diversification) to zero in on mining, among four other non-oil sectors, as promising alternatives to Oman’s predominantly oil-dependent economy.
In this regard, Prof Halls affirmed MECA’s desire to become an “enabler” of this strategic national goal. “We want to look at how MECA can work with industry to find appropriate solutions to some of the challenges we currently face.
It’s only by having an enabling regulatory environment can these economic and social benefits (associated with the mining sector) be accrued.” sites for other
He also pledged efforts to speed up licensing and permitting procedures, noting that current delays — extending to over a year in some cases — are unacceptable. “We are trying to help create a supportive yet compliant business environment for the mining sector in Oman that protects and conserves the natural environment,” Prof Halls said.
“It is a process that will take some time, but we want to work with you to find solutions on the way forward. We need implementable strategies, and fair and equitable regulations, and need to improve the approvals process. We are looking to implement a time-limited approvals process.”
MECA, the expert said, is eyeing a roughly two-year timeframe for the roll out of the new environmental regulatory framework. “We are looking at end-2017 and early 2018 for the first phases (of the framework), while amendments and additional legislation will take another year thereafter,” he said. “Our goal is to build a sustainable mining and extractive industries segment in Oman — not one that is reactive and impeded by overly burdensome regulation — but supported and encouraged by regulation.”
The 3-day Oman Mining & Minerals Exhibition & Conference was jointly organised by Awtad GeoQuest and Oman Expo with the support of the Public Authority for Mining (PAM).