Prosecution reinforces mining regulator’s rehabilitation approach

A mining company and its responsible officers have been prosecuted and sentenced for failing to maintain a sufficient rehabilitation bond.

A mining company and its responsible officers have been prosecuted and sentenced for failing to maintain a sufficient rehabilitation bond.

Mine operators must lodge rehabilitation bonds with the Earth Resources Regulator as a last resort provision to fund site rehabilitation should the authority holder default on their obligations.

The previous owners of the Ballarat Gold Mine, Balmaine Gold Pty Ltd, and three of its former officers were sentenced on 18 June for failing to adjust their rehabilitation liability in response to a Notice issued under Victoria’s mining legislation.

The court noted that Balmaine Gold had ‘manifestly failed’ in its duties and that company officers who cannot comply with their obligations have ‘no place’ in the mining industry.

Following a 2021 assessment of the rehabilitation costs at the Ballarat Gold Mine, the Earth Resources Regulator required Balmaine Gold to enter into a further rehabilitation bond of more than $4 million by June 2022.

Two of Balmaine’s officers, Ms Jiajia Yao and Mr Liang Yao, were convicted and fined in their absence. The conviction could limit their ability to take a similar future role within the state’s resources sector.

The court found that JiaJia Yao and Liang Yao, had ‘completely disrespected’ their legal responsibilities as company officers in failing to appear at court when they had all the benefits that flowed from the mining licence.

Balmaine Gold and its former director Mr Xu Li pleaded guilty and were each fined $2,000 without conviction.

The current owners of the Ballarat Gold Mine have met the rehabilitation bond requirement.

Quotes attributable to Resources Victoria CEO Matt Vincent

“This prosecution sends a strong message that those with responsibilities in the state’s mining sector must respect our regulations and act in accordance with the important provisions in place.”

“Two of the directors have been found to have disrespected the legal process and paid the price with convictions recorded against their names.”

“We have regulatory processes in place to ensure that the community and state are no longer left with the cost should a company operating in Victoria’s mining industry today fail the system.”

Contact: Mark Farrugia

Phone: 0438 874 293