AN INDUSTRY regulator says it has been forced to monitor a disused mining site itself after the company that should be doing it failed to heed a "series of compliance notices".
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Earth Resources has revealed its lawyers are pursuing "outstanding" compliance matters including repeated requests for company GBM Gold to start rehabilitating its Woodvale site more than a year after it lost several mining licences around Bendigo.
The regulator says it is reinstating monitoring at Woodvale's evaporation ponds itself after Kralcopic Pty Ltd - a GBM Gold subsidiary - failed to monitor conditions.
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A number of community groups have long pressed for rehabilitation at Woodvale, where water from Bendigo mines was once pumped to sit in giant, shallow ponds to evaporate.
The ponds have left toxic minerals including arsenic, which some fear could blow across Woodvale with dust should too much water evaporate over summer.
"We're finalising arrangements for dust monitoring equipment to be installed this week. We will also engage an environmental specialist to assess the samples ASAP," Earth Resources told them in a community update that began circulating in recent days.
But a GBM Gold spokesperson said excessive rain in recent months and a La Nina weather pattern had left water in the ponds, which "would remain so over the summer months, well into 2021".
In any case, fears of dust are overblown, the spokesperson said.
"Woodvale is a salt pan and the salt is crystalline and locks moisture underneath," the spokesperson said.
Asked whether GBM Gold had been conducting environmental monitoring, the spokesperson said "representatives of the company have been keeping a close eye on the site which is full of water and has an abundance of flora and fauna".
The compliance push comes at a precarious time for GBM Gold's dream of mining gold in Bendigo.
The company is waiting for Victoria's Supreme Court to rule on its case to get back a number of mining licences.
Earth Resources revoked the GBM Gold's licences in 2019 over concerns the company could not fund future works.
The Supreme Court had originally expected to make a ruling by the end of 2020 but has since pushed that back until the new year.
Should it lose, GBM Gold will not be able to explore and mine in the Swan Decline, an 18km-long tunnel from Kangaroo Flat underneath Bendigo dug by previous companies.
Ian Magee used to sit on a community environmental committee panel with oversight of GBM Gold mining operations.
His committee has not sat since 2018 when it was disbanded, triggering concerns about community input on operations.
"We'd like to see Earth Resources commit to establishing a closure plan and get on with rehabilitation works," Mr Magee said.
Earth Resources has previously told the Bendigo Advertiser that community consultation would take place before any rehabilitation works started.
Meanwhile, a question mark also remains over extra money GBM Gold has agreed to pay Earth Resources to cover rehabilitation should the company be unable to start environmental works.
The state government requires all mining companies to pay such a bond.
GBM Gold previously agreed to add an extra $572,000 to its existing $1.8 million bond.
Earth Resources says it is still waiting for the money.
"Our lawyers have written to them again to seek payment by Monday 11 January 2020," the regulator told the public in its community update.
GBM Gold's spokesperson said the company is in the process of raising $7 million in capital and expects the bond money to be paid in early 2021.