The Tasmanian Greens say the state's mining bond system is inadequate to deal with rehabilitation of mining sites long after companies have left them.
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The sale of the Mount Lyell copper mine in Queenstown is due to be finalised in June, but it remains uncertain when the mine will officially be reopened.
It has been in care and maintenance since 2014.
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The state's Environmental Protection Authority says without remedial action, acid mine drainage will continue to contaminate the town's river system and harbour for hundreds of years.
It says investigations on treatment of the drainage revealed capital costs of between $10 million and $16 million and ongoing annual operating costs of between $1.6 million and $10 million which would need to be borne by the government if the mine was closed.
Under Tasmania's bond system for mining and exploration tenements, mine sites must be adequately rehabilitated so there are no remaining environmental or safety hazards.
But Greens leader Cassy O'Connor said this system was not good enough.
"Mine sites and their infrastructure can take hundreds of years to rehabilitate and cost taxpayers far more than has provided by companies," she said.
Under legislation passed in 1999, the owners of the Mount Lyell copper mine are not liable for rehabilitation responsibilities prior to the mid-1990s - the government is.
"The Mount Lyell mine is another potential example of what is an inadequate bond system," Ms O'Connor said.
"Tasmanians shouldn't be faced with the choice of a massive rehabilitation cost to taxpayers, or an environmental disaster.
"We recognise the Mount Lyell mine has been a backbone of the West Coast economy.
"After more than a century of operation, we hope Queenstown locals aren't left with a bad taste in their mouths and a huge clean-up job."
She said when governments gave mining licences to companies, they should plan for what mining activity would mean for the area and local community into the future.
"They should certainly make sure the environmental bond system is enough to repair any damage caused by the mine's operation," she said.
Environment Tasmania strategic director Laura Kelly said the price of copper was soaring.
"The Tasmanian Government must require new owners to contribute to the costs of site remediation, as Vedanta Resources should have done, instead of being handed ten million dollars from Tassie taxpayers for capital works," she said.
"Let's not get screwed over by big mining again, who will make mega profits and leave the West Coast community poisoned."
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