Mining licences held by a Bendigo-based company have not been renewed by Victoria’s mining and resources regulator due to the company’s inability to provide surety of its finances.
In 2018 Kralcopic Pty Ltd, a wholly-owned subsidiary of GBM Gold Ltd, notified the Australian Stock Exchange of its financial situation and trading of the company’s stocks were suspended.
Earth Resources Regulation subsequently requested evidence of the company’s ability to fund its operations. Under Victorian mining legislation, licence holders must satisfy the regulator that they are likely to be able to finance their operations and site rehabilitation obligations.
Financial details provided by Kralcopic have been assessed by the regulator, following analysis by independent financial consultant PricewaterhouseCoopers.
Kralcopic remains obliged to rehabilitate its Woodvale and Kangaroo Flat sites under the state’s mining law.
The former mine sites will be exempted from applications for any further mining licences pending consultation with the Bendigo community and government consideration about future land uses.
The Woodvale site is required to be rehabilitated back to farmland.
Regular monitoring by Earth Resources Regulation will continue to ensure the Woodvale site is properly managed and the evaporation ponds remain covered to reduce local dust issues.
Bonds in the form of bank guarantees, to the value of around $5.9 million, are in place to cover rehabilitation costs at both sites, if the former licensee fails to fulfil its obligations. Copies of the bonds are now available publicly.
As noted by Executive Director, Earth Resources Regulation, Anthony Hurst:
“I have concluded that Kralcopic is not likely to be able to finance its operations and meet its obligations at its Bendigo sites.”
“Kralcopic was given every opportunity to demonstrate it has the finance, but the company has been unable to provide the necessary detail.”
“Kralcopic is obliged to rehabilitate its Woodvale and Kangaroo Flat sites and Earth Resources Regulation will continue to closely monitor this work.”