The NSW Department of Industry’s Resources Regulator has issued a suspension notice to Young Mining for a breach under the Mining Act relating to the failure to pay outstanding environmental rehabilitation security deposits.
Young Mining has been ordered to suspend all mining operations from Thursday 18 August 2016. The failure to pay the outstanding security is a contravention of a condition of Young Mining’s authorisation and is a breach of section 378D of the Mining Act.
“The Regulator has actively tried to work with Young Mining to reach a resolution to this breach since 2013,” explained Chief Compliance Officer, Ms Lee Shearer.
“Young Mining has not provided $540,000 of its security deposit. The Regulator has provided reasonable extensions to the suspension notice to allow the company to meet its obligations. However, despite repeated assurances from the company, the timelines have not been met and the required security deposit remains outstanding.”
Environmental rehabilitation security deposits that cover the full cost of rehabilitation are required on all mining lease authorisations. This requirement ensures that the State does not incur financial liabilities in the event of an authorisation holder defaulting on their rehabilitation obligations.
“Young Mining has been given more than sufficient time to pay the additional security deposit,” said Ms Shearer.
“All mining operations will now be suspended until we are satisfied the company has complied with its obligations.
“Environmental rehabilitation security deposits and requirements for progressive rehabilitation during the life of a mine are part of the regulatory framework which ensures a viable and sustainable mining industry in NSW. The NSW Resources Regulator takes any failure to provide full security deposits very seriously.
“Continued failure to pay the outstanding security could result in further regulatory action and may result in licence cancellation.”
