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The state government has approved the transfer of mining and exploration licences in Bendigo from Unity Mining to a subsidiary of Bendigo-based company GBM Gold.
Minister for Energy and Resources Lily D’Ambrosio said the licence transfer to Kralcopic Pty Ltd would create 15 jobs after the first year as the company expands its operations in Bendigo.
The Bendigo Advertiser reported in April the announcement was imminent.
GBM Gold will be required to rehabilitate the two largest ponds at the Woodvale site, ponds six and seven, within two years as a condition of the transfer.
The two ponds cover about 80 hectares and account for roughly two-thirds of the entire evaporation ponds area.
The new operator will also be required to use treated water for dust suppression and to send to the site.
GBM Gold was subjected to a fit and proper person test, and assessed for its financial stability standards to carry out the mining activity and pay the site’s almost $6 million rehabilitation bond.
It intends to reprocess the contents of the mine’s sand and tailings waste to extract further gold that would otherwise be lost to mining by-product.
GBM Gold will engage with the community as it develops its work plan and Earth Resources Regulation, the mining regulator, will discuss site rehabilitation issues with the community.
Price Waterhouse Coopers acted as independent financial consultants to review the work of the mining regulator in assessing the licence transfers.
An accredited auditor from environmental consultants AECOM reviewed the rehabilitation bond earlier this year and increased it to $5.948 million.
Ms D’Ambrosio said in Kangaroo Flat on Monday the announcement was a positive outcome for jobs, the environment, and the health and wellbeing of the community.
“It’s a new era in the way mining activities and mining rehabilitation occur in Bendigo,” she said.
“We will see a more transparent, open and communicative regime in terms of monitoring our earth resources.
“I am confident from here on the community can have confidence the regulator will have their best interests at heart, and at the same time we can get those much needed jobs created in Bendigo.”
She deferred to Minister for Water and Environment Lisa Neville to comment on management of the groundwater from the mine.
“That’s her thunder – I’m not going to steal that,” Ms D’Ambrosio said.
Unity Mining general operation manager Rob McLean was pleased the transfer has been confirmed and GBM Gold could start enacting their plans.
“We were very disappointed when the mine shut and we have been actively trying to move on from there,” Mr McLean said.
GBM Gold has committed to work with the community on its plans.
“We are thrilled the minister has started the tenements,” chief executive officer John Harrison said following the announcement on Monday.
“It has been a three year process to get here.”