Regulator seeks assurance on gold miner’s capability

Following ownership and executive changes at Ballarat Gold Mine, Earth Resources Regulation is now conducting a fit and proper assessment of the Balmaine Gold’s management team and is evaluating the company’s mining capability and rehabilitation liabilities.

Following ownership and executive changes at Ballarat Gold Mine, Earth Resources Regulation is now conducting a fit and proper assessment of the Balmaine Gold’s management team and is evaluating the company’s mining capability and rehabilitation liabilities.

Under the state’s mining law, the directors and senior management of mines must meet the requirement of being considered a 'fit and proper person’ to hold a mining licence in Victoria.

The factors that can be considered include a person’s past conduct and whether they have overseen a company that has gone into administration or has failed to comply with natural resource, environmental or worker safety regulations.

The professional reputation, competence, diligence and judgement of Balmaine Gold as the licensee will also be considered. Mining licensees must also demonstrate to the regulator their capability to fund site rehabilitation liabilities and mining operations.

Earth Resources Regulation has directed Balmaine Gold to prepare an independent rehabilitation liability assessment to provide an up-to-date understanding of rehabilitation liabilities for the site.

Rigorous planning is required to run a mining operation including proper storage of rock waste and mine tailings. In the medium term, an inability to store tailings and waste rock has the potential to impact production.

In March 2021 Balmaine Gold applied to the regulator to store tailings adjacent to the current facility. The regulator assessed that the risks associated with the storage were not adequately addressed in the application, which had substandard technical information and rehabilitation plans.

In May 2021, the new operators were also issued a notice requiring them to stop using a waste rock dump at the site. While the matters in notice are being addressed, operations can continue with the mine utilising other areas which have been approved to store waste rock.

Earth Resources Regulation will continue to work with Balmaine Gold to understand the company’s mining strategy and assist by advising on statutory requirements.

Quotes attributable to Earth Resources Regulation Executive Director Anthony Hurst:

“We’re examining the competency of the licensee to run a mine, their status as ‘fit and proper’ and their ability to meet their site rehabilitation liabilities.”

“We’ll continue working with the licensee to understand their forward mining strategy and provide guidance on the relevant regulatory requirements.”

“We’re working to ensure the risks associated with mining at the Ballarat site are minimised and the necessary controls are in place.”

Contact: Mark Farrugia

Phone: 03 8392 6913