Application of bond amounts

THE Ministry of Lands and Mineral Resources is not applying the correct bond amounts on exploration companies to commensurate with the environmental impact, the Auditor-General has found.

In its 2019 Audit Report on Economic Services Sector that was tabled in Parliament, the OAG said the mining bond was applied without an assessment structure.

The director mining may require a deposit or an increased deposit from the holder of a prospector’s right or an increased deposit from the holder of a mining tenement.

“The Department of Minerals is charging 10 per cent bond for mineral exploration to companies for exploration works. We noted that the 10 per cent bond applied by the Mines Division of the Department of Mineral Resources was without an assessment structure or framework to objectively determine the bond rate.”

The OAG said without the structured bond calculation, there was a risk that correct bond amount may not be levied to exploration companies to commensurate with the environmental impact.

“The ministry should expedite the formulation of an appropriate bond calculation matrix for mineral exploration purposes.”

The Mineral Resources Department said it had formulated a bond calculation matrix for the determination of exploration and once approved, it would be adopted by the department.

The ministry should expedite the formulation of an appropriate bond calculation ... – OAG