THE City of Greater Bendigo has written to the state government expressing concern over GBM Gold’s plans to restart the mothballed Kangaroo Flat gold mine.

Unity Mining ceased operations at the site in 2011 and placed the processing plant and associated infrastructure on a maintenance program while a buyer was sought.

In September last year, GBM shareholders voted to purchase the company’s assets and seek approval for the transfer of the mining and exploration licences.

GBM chief executive officer John Harrison told the Bendigo Advertiser last week the company was ready to start operations as soon as the approval was granted.

However, the chairman of Unity Mining’s Environment Review Committee, Councillor Peter Cox, said grave concerns were held over what it would mean for rehabilitation plans.

He said Unity had an obligation to address the problem of rising groundwater that “could impact the city centre and agricultural land to the north of Bendigo”.

“It is disturbing that GBM Gold could take over the licence which allows Unity Mining to renege on its multimillion-dollar responsibility to rehabilitate,” he said.

“A schedule for rehabilitation needs to be put in place before the state government considered any possible transfer.

“Further it appears that GBM Gold do not have the funds to take over this responsibility.

“These issues need to be fully explained and evidence provided so that the community can have confidence in any possible transfer.”