Regulatory Assets Compliance

Nidhix will provide a structured set of procedures, Regulatory standards, and best inductry practice to help you achieve compliance with relevant laws and regulations.

The organisation that can take its regulatory compliance challenges will enjoy sustained growth, avoid costly fines, and maintain a strong competitive position.

Regulatory compliance risk is defined as the risk to which an organisation might be exposed to should it fail to comply with the applicable regulatory requirements from its operational procedures. (Compliance to Work Health and Safety Regulations 2022). This risk is currently a major concern for most mining companies in Australia, as the Mines regulation is dissolved and is not taken over by new Work Health and Safety Regulation.

What are the benefits to comply with regulatory requirements?

  • Your organisation will comply with state laws, thereby preventing the risk of penalties, major fines and/or imprisonment,
  • Preserve its mining licence to operate, as direct breaches of certain legislation will place the company’s sustainability at risk,
  • The building of shareholder, customer, and funder confidence, as none of these groupings would want to be associated with a company that breeches legislation to achieve financial returns,
  • Enhancement of stakeholder awareness, especially regulators, the mining communities in which they operate in, and labour unions, as their members experience the benefits of an employer that has implemented policies and procedures that complies with Work Health and Safety regulation, and
  • Protection from organisation’s reputation damage, as the regulatory compliance process ensures a continued focus on establishing and monitoring policies and procedures that improve the company’s standards of integrity, as well as result in improved rights, obligations, privileges, and overall corporate responsibility within our local and global environments.

From above the benefits are clear about maintaining regulatory compliance practices in a mining company, Initially, it will experience certain challenges in ensuring that the processes are effective in your organisation.

Some of these challenges are:

The magnitude of compliance, as this includes the regulators’ requirements, specific country requirements where exploration activities are performed, as well as listing requirements,

Keeping ahead of the total number of amendments to applicable regulatory requirements,

The interpretation of especially new or existing legislation by internal resources in terms of the controls that needs to be established by the company, as well as how the regulator will enforce specific requirements, and

The cost of compliance, as new legislation Work Health and Safety Regulation 2022, impacts on various areas of a mining company. To have a comprehensive understanding of its requirements, companies may perform (by using external expertise) an initial gap analysis. Nidhix will assist you with the action plans required to ensure compliance. Other regulatory compliance costs will also include the use of external expertise that may be needed to clarify regulatory concepts. The upgrade, policy changes or enhancements to company infrastructure or processes may increase operating costs as well as the cost of internal resources required to specifically oversee a regulatory compliance function.

What are the simple steps Nidhix will take for your company so that it complies with such a wide range of legislation that governs your operations?

Step 1 – Nidhix will establish a regulatory framework that clearly outlines the background, objectives, and benefits of regulatory compliance.

Step 2 – Nidhix will help command board approval of your company regulatory policy procedure. The procedure sets the tone for how the company views regulatory compliance and ensures commitment to implement the process.

Step 3 – Nidhix will help your company in the development of maintenance strategies that highlights the key legislation applicable to the company, its potential impact and consequence of non- compliance. In addition to this, company policies and procedures, should also be identified to ensure compliance.

Step 4 – Nidhix will help you in appointment of regulatory compliance champions across the various areas of the business who ensure that the regulatory compliance process is implemented in their areas of responsibility. This includes establishing Regulatory plans as well as reports based on the compliance procedure that is applicable to their areas.

Step 5 – Nidhix will build a reporting model for your company who will implement a regulatory compliance forum that meets on a regular basis and is chaired by a compliance officer. This forum will serve as the focal point where training is provided, legislative updates are discussed, and regulatory compliance champion updates are made.

Step 6 – Nidhix will assist you to identify a reputable third-party service provider who assists in ensuring, as a minimum, biweekly updates on new or amended regulatory requirements to the company.

Step 7 – We will help implement a verification tool to ensure that the mentioned controls are implemented, especially regarding high-consequence legislation.

Step 8 – Nidhix will provide continued support for ongoing engagement processes with regulators to establish sound relationships.