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Managing the Legal Environment - Waratah Coal Pty Ltd
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Added on 2019-10-30
Managing the Legal Environment - Waratah Coal Pty Ltd
Added on 2019-10-30
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Managing the Legal EnvironmentWaratah Coal Pty Ltd
WARATAH COAL PTY LTD Page 2 of 25Executive SummaryThe companies in Australia have a substantial legal environment, whereby a number of legislations and regulations are to be followed by the companies. Included in these are the common legislations like the Corporations Act, 2001 and the Competition and Consumer Act, 2010, and the specific legislations like the Environment Protection and Biodiversity Conservation Act, 1999. The applicability of these legislations is one the basis of the type of industry in which the company is and on the operations which are conducted by the company. It is significant that these statutes are properly adhered, or else, the company has to face legal implications, which not only harm them in short term, but in long run as well.In the report, the legal environment of Waratah Coal Pty Ltd has been analysed. Waratah Coal Pty Ltd is a company working under the mining industry, and is a subsidiary of Mineralogy Pty Ltd, which was listed earlier, but since it becoming a subsidiary, has been delisted. Due to itsactivities, the key piece of legislation which the company often comes across is the Environment Protection and Biodiversity Conservation Act, 1999. The key project which is the focus of the company is the Galilee Basin Project. And so, this report revolves around these three elements, to study the manner in which the Environment Protection and Biodiversity Conservation Act, 1999 affects the Galilee Basin Project of Waratah Coal Pty Ltd, along with the other complianceswhich are required to be carried on by the company. This has been done to highlight the strategicoptions available to the company for managing its legal risks, which arise as a result of the interplay of the three aspects. In addition to this, this would allow recommendations to be drawn for the company, which can help the company in taking care of the interplay of the three aspects.
WARATAH COAL PTY LTD Page 3 of 25Table of ContentsIntroduction......................................................................................................................................4Waratah Coal Pty Ltd......................................................................................................................4Issues faced by Waratah..................................................................................................................6Applicable legislations for Waratah................................................................................................8EPBCA........................................................................................................................................9Significant provisions of EPBCA in context of Waratah..........................................................10EPBCA and Waratah.................................................................................................................12High Risks for Waratah.................................................................................................................14Galilee Basin Project.................................................................................................................15Legal Risk Implications for Waratah.............................................................................................17Strategic Options for Managing Legal Risk..................................................................................18Recommendations..........................................................................................................................19Conclusion.....................................................................................................................................19References......................................................................................................................................21
WARATAH COAL PTY LTD Page 4 of 25IntroductionWaratah Coal Pty Ltd is a company having its exploration activities predominantly located in Northern Territory, Queensland and New South Wales. It is a company which is engaged in acquisition, exploration and development of the coal projects in the nation and operates as a subsidiary Mineralogy Pty Ltd. Waratah Coal Pty Ltd was incorporated back in 2005 and is majorly based in Brisbane, having additional office in Canada’s Toronto1. Environment Protection and Biodiversity Conservation Act, 19992, herein referred to as EPBCA, is a significant legislation applicable in the nation, which is focused upon protecting and safeguarding the biodiversity and the environment of the nation. This act applies on the mining industry, of which Waratah Coal Pty Ltd is a part; and even for such industries which are engaged in mineral exploration. The discussion contained in this report is focused on the operations of Waratah Coal Pty Ltd and its adherence to EPBCA and the other legislations, as are applicable on it. This has been done to gain an understanding into the legal risks which are raised for the company for being a mining industry. This report would, in short, help in presenting a conclusive summary of the legal environment surrounding Waratah Coal Pty Ltd.Waratah Coal Pty LtdWaratah Coal Pty Ltd (Waratah) is a coal development and exploration company having its operations in the nation. The company has different exploration permits for minerals and coals located in Northern Territory regions, Surat, Nymbodia, Maryborough, Moreton, Styx’s, 1Bloomberg, Company Overview of Waratah Coal Pty Ltd. (2017) <https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=98779213>2 Environment Protection and Biodiversity Conservation Act, 1999 (Cth)
WARATAH COAL PTY LTD Page 5 of 25Bowen, Laura and Galilee as these areas are rich in mineral basins3. The company takes pride in it being dedicated towards the development of Queensland region as it expands the mineral wealth and also works as an outstanding territory for this jurisdiction. Waratah is focused on developing and probing of the coal projects in the nation4. Waratah has made a proposal of $8.4 billion for the coal mine and infrastructure project in Central Queensland’s Galilee Basin in collaboration with Mineralogy Pty Ltd’s subsidiary, i.e., Galilee Pty Ltd.5The Galilee Basin Project covers a big thermal coal mine which is located near Alpha, which is in west of Emerald. This particular project is expected to cover four underground mines,processing facilities, associated coal handling, and two surface mines6. As per the schedule, the mine is to be in connection with the new coal terminal which had to be located at Abbot Point which is a place near Bowen by putting up a new standard gauge and heavy haul railways line which is supposed to be 453 km long7. Back in 2008, Queensland’s Coordinator-General had given Galilee Basin Project a significant project status and this status was also given to Galilee Power Project of the company, but in September 20098. The company is not only listed on the Australian Stock Exchange but is also listed on the Toronto Stock Exchange. Waratah accepted the offer of Mineralogy Pty Ltd to obtain the controlling stakes of Waratah back in December 2008 and as a result of this, Waratah became thesubsidiary of Mineralogy Group. This group, along with its allies have an experience of twenty 3 Waratah Coal, Corporate Profile (2017) <http://waratahcoal.com/corporate-profile/>4 David Blair, Encyclopedia of Australasia (Cosmo Publications, 2006)5Seek, Waratah Coal (2017) <https://www.seek.com.au/companies/waratah-coal-802386>6 Queensland Government, Galilee Coal Project (Northern Export Facility). (2017) <http://www.statedevelopment.qld.gov.au/assessments-and-approvals/galilee-coal-project.html>7 Department of Sustainability, Environment, Water, Population and Communities, Final Guidelines for an Environmental Impact Statement for Waratah Coal Terminal Project, Port Of Abbot Point, Queensland (2012) <http://www.environment.gov.au/epbc/notices/assessments/2012/6250/2012-6250-final-eis-guidelines.pdf>8 Waratah Coal, Infastructure Facility Of Significance For Waratah Rail (2011) <http://waratahcoal.com/infastructure-facility-of-significance-for-waratah-rail/>
WARATAH COAL PTY LTD Page 6 of 25five years in development, management and funding of major projects. At present, the company is fully owned by Mineralogy Pty Ltd9.Issues faced by WaratahThe companies, depending upon the nation or industry in which they are in, are required to follow different acts, rules, laws, legislations, regulations and statutes, as are applicable upon them. From the very basic of purchasing land for conducting business, to hiring of the employees, different legislations, bylaws and regulations are required to be adhered with. These regulations, laws and other statutory instruments create the legal environment for the company, which held in managing the relationship of the company and also in its governance. The companies are thus required to follow a range of different legislations.Waratah has its operations in different parts of the nation, and on this basis, it is required to adhere to not only the laws of the Commonwealth, but also of the state or territory in which it operates. Apart from these laws, the company also has to follow the common law, where the tort law and the contract law are deemed as most significant. Due to the high number of laws which have to be followed, the legal environment of the company needs to be monitored strictly. The key issues faced by Waratah, which impacts its operations, are related predominantlyto the laws related to environment. Apart from this, the company also has to face major logisticalissued particularly in the matter of the transportation to international markets from its mines. Mining licenses and permits, which are a major requirement for being in mining industry, also pose a problem for the company as these licenses and permits are necessary for undertaking the 9At 3
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