Australia's New South Wales (NSW) Department of Industry’s Resources Regulator has issued a suspension notice to Young Mining over unpaid environmental rehabilitation security deposits.
All mining operations of the company have been suspended for a breach of section 378D of the Mining Act relating to the failure to pay these deposits.
The department claimed that the failure is a beach of a condition of the mining company’s authorisation.
NSW Department of Industry Resources chief compliance officer Lee Shearer said: “The regulator has actively tried to work with Young Mining to reach a resolution to this breach since 2013.
“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.”
Despite repeated assurances, the company could not meet the timelines and failed to pay the outstanding security deposit.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
Environmental deposits that cover the full cost of rehabilitation are required on all mining lease authorisations.
These requirements ensure that NSW does not incur financial liabilities at the time of an authorisation holder defaulting on their rehabilitation obligations.
Shearer said that Young Mining was given enough time to pay the additional security deposit.
Shearer added: “All mining operations will now be suspended until we are satisfied the company has complied with its obligations.”