Dáil debates

Wednesday, 22 February 2017

Minerals Development Bill 2015 [Seanad]: Second Stage

 

8:40 pm

Photo of Seán KyneSeán Kyne (Galway West, Fine Gael) | Oireachtas source

I thank all the Deputies who participated in this debate and, in general, expressed their support for this Bill to be advanced to Committee Stage. I appreciate that a number of items will have to be discussed at that point. As Minister of State with responsibility for the minerals sector which makes a significant contribution to the economy, I wish to maintain and promote a minerals industry that is sustainable and contributes to jobs and economic growth. Importantly, the jobs in this sector are based in the regions. The mining sector makes a significant contribution to many rural areas and local economies. To that end, it is important to have in place a modern statutory code that is suitable for the effective stewardship and development of the sector and fosters the discovery of new deposits. Ireland has a good record in the discovery and development of mineral deposits, especially zinc. It is one of the world's leading zinc-mining countries and continues to attract significant levels of exploration expenditure. However, the minerals industry is global in nature. As a consequence, we know that a clear set of rules is needed to attract international investment. That is what this Bill aims to achieve. It marks a major advance for this sector and will ensure the model is fit for purpose for the years ahead. As I said earlier, I look forward to engaging with Deputies on Committee Stage.

I will go through a few of the comments that were made. I thank Deputy James Lawless for expressing Fianna Fáil's support for this Bill. Like Deputy Jackie Cahill, he gave the House an overview of the contribution of mining to the economy. He mentioned some mining sites. We can explore those matters further on Committee Stage. I remind him that the rehabilitation fund for newer developments supports the rehabilitation cost to the State. Clearly, there are also older abandoned mines.

A number of Deputies, including Deputies dJames Lawless and Eamon Ryan, referred to the possibility of looking at old mines, mining sites and slag heaps to see whether there are other precious resources at those locations. We might examine best practice in other countries in this regard in advance of Committee Stage.

As I said at the outset, fracking is outside the scope of this Bill because hydraulic fracturing is not a technique used in prospecting or mining for minerals. The definition of "minerals" in section 2 of the Bill encompasses "extractive waste".

Deputy Jackie Cahill spoke about the contribution of mining to the economy with specific reference to Lisheen Mine, which was an exemplary operation. The mine ceased to operate, after 15 years in operation, in 2015 when all the ore had been mined. The Department is working closely with the Environmental Protection Agency, Tipperary County Council and other regulatory authorities to ensure the fulfilment of all statutory and planning obligations in relation to closure and aftercare at Lisheen. The mine will be closed in accordance with global best practice in mine closure. The mine is currently in the active phase of its closure plan. The mine is being deactivated and rehabilitated over a five-year period. The closure plan is well advanced with the mine sealed and the area rewatered. The majority of the tailings management facility has been capped and vegetated. Mine buildings have been removed and the land rehabilitated.

Deputy Jackie Cahill also spoke about the extensive former mining site at Silvermines, which includes some areas covered by a mining lease which expired in 1998. The former lessee, Mogul of Ireland Limited, was responsible for the rehabilitation of the areas covered by the lease. Despite working continuously with the company, the Department eventually concluded that the company did not have the finance or expertise to carry out a remediation programme.

An extensive programme of remediation works at five of the six identified former mining sites at Silvermines, County Tipperary, was undertaken from 2007 and by the end of 2013, expenditure amounted to €11.19 million. The Gortmore TMF facility was the largest site remediated at a cost of €6 million, with this work including drawing up proposals for future maintenance, having regard to the nature of the site, and a decision was taken to take the site into public ownership.

A number of Deputies mentioned dolomite, with Deputy Jackie Cahill the first to do so. It was also mentioned by Deputies Brian Stanley, Sean Sherlock, Michael Healy-Rae and Mattie McGrath. It is proposed to introduce a Government amendment on Committee Stage in the Dáil to delete reference to dolomitic limestone entirely in the definition of minerals in section 2 and the Schedule to the Bill. Dolomitic limestone will therefore be treated in a similar manner to limestone and will no longer be a scheduled mineral under the Minerals Development Act.

Deputy Brian Stanley also raised the issue of section 82 in speaking about privatisation. On Report Stage in the Seanad, the Minister of State, Deputy Joe McHugh, accepted the Opposition amendment to delete section 82 but for procedural reasons, the amendment fell. It is proposed to introduce a Government amendment on Committee Stage in the Dáil to effect the deletion of section 82. I also agree with Deputy Stanley that mineral development offers opportunities for employment in rural areas. Large companies are subject to royalties, as Deputy Cahill and others noted. Lisheen, which is operated by a large company, contributed to the local economy as well as to the State. A number of Deputies mentioned royalties and section 76(5) of the Bill requires the Minister to review royalty regulations every eight years. I do not want to comment on the issues with Rossmore as there is an investigation of offences under the Minerals Development Act, with a file sent to the Office of the Chief State Solicitor.

We will address Deputy Sean Sherlock's concerns and amendment on Committee Stage. He also thanked the officials, which I do also, for their work in framing the Bill. I acknowledge the role of Deputy Eamon Ryan as a former Minister. The definition of minerals includes extractive waste and we share the Deputy's concerns about exploiting minerals in a sustainable manner. The Deputy also spoke about the old tailings ponds, recycling of materials and royalties.

To respond to Deputy Mattie McGrath, section 76(5) of the Bill requires the Minister to review royalty regulations every eight years. Planning for a mine goes through the full local authority planning process, as well as Environmental Protection Agency processes. The Deputy mentioned air and water. Both Lisheen and Galmoy mines had community gain with the development aspects and companies did that voluntarily. The Deputy also raised the issue of dolomite, which has been addressed, with the relevant portion to be deleted on Committee Stage.

As I indicated in my opening statement, the minerals referred to in this Bill do not include water, stone, sand, gravel, clay, turf, peat or topsoil. Deputies mentioned issues relating to quarries that do not come under the scope of this legislation but fall under planning regulations in local authorities.

To respond to Deputy Catherine Connolly, royalties were previously set on a case-by-case basis, with some set decades ago. This Bill sets uniform royalty rates for future developments. Under new mining licences, there are remediation funds for the remediation of old mines, although I accept there are significant historical problems that must be remediated. Again, we can explore those issues on Committee Stage, although I am not sure we will have scope to pursue the report suggested by the Deputy. She could contact the Chairman of the committee to explore it at another stage in advance.

With regard to the Aarhus Convention, there has been close consultation with the Attorney General's office and the provisions of the Bill in this regard have been drafted accordingly. We can explore that on Committee Stage. The Fraser Institute rankings focused on clarity and transparency of the regulatory system rather than fiscal return and infrastructure, although I know where the Deputy is coming from with regard to royalties. We can explore that issue on Committee Stage also.

I thank all Deputies for their contributions and look forward to further debate and engagement on Committee Stage.

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