Sally Zou’s NSW mine shut down over problems with regulatory compliance, financial issues and dead kangaroos

SA’s mysterious millionaire Sally Zou has had her company’s sole mining project shut down amid findings of illegal dam construction and the death of large numbers of kangaroos. Her only response so far has been a bizarre and cryptic tweet.

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Sally Zou’s company Aus Gold Mining Group has had its sole mining project shut down amid findings of illegal dam construction, the death of large numbers of kangaroos and doubts about her financial situation.

Ms Zou, the state Liberal Party’s single largest donor who has been embroiled in two high-profile legal stoushes in South Australia, has had a mining operation at Tibooburra in western New South Wales shut down by the NSW Resources Regulator.

The regulator has issued a directive that Aus Gold — the company of which she is the sole director — stop all activities at the mine site, except those required to maintain it safely.

If Aus Gold does not comply, it faces fines of up to $1.1 million, plus $110,000 per day, while the offences for a person found guilty of such offences are $220,000, plus $22,000 per day.

Ms Zou has not yet responded to the closure, though she has returned to Twitter this week and today posted the following status, which quotes former US Presidents Abraham Lincoln and Franklin Roosevelt.

It also has a picture of Santa Claus on the Moon.

A smooth sea never made a skillful mariner, Towering genius disdains a beaten path ... She who reigns with herself and rules her passions , desires, and fears is more than a King ... pic.twitter.com/qGY18iPPcF

— Sally ZOU (@sally_ausgold) February 15, 2019

The regulator’s chief compliance officer, Anthony Keon, said the decision required Aus Gold to immediately suspend all operations at the mining lease.

“The regulator formed the opinion that Aus Gold is not currently fit and proper to hold a mining authorisation, as the management of mining activities at the site were no longer under the control of a technically competent person. Additionally, Aus Gold could not demonstrate its financial capacity to ensure ongoing compliance with the state’s mining laws,” Mr Keon said.

“Further, Aus Gold has failed to comply with other obligations under the Mining Act and as a result their authority has been suspended. The breaches related to failing to report an environmental incident, failing to lodge a mining operations plan and not notifying the regulator of a suspension of operations (which) demonstrated a poor compliance approach.

“Aus Gold must satisfy the regulator that it can come back into compliance and the regulator will monitor progress over the coming months.”

The regulator’s 11-page report details numerous issues with the mine site, including the death of 25 kangaroos.

An inspection of the mine site showed that a “slimes”, or sediment storage dam, had been constructed where it should not have been, and “the disturbance footprint was larger than the footprint approved’’.

“The inspection conducted by the regulator on 5 September 2018 identified more than 25 kangaroos that had become trapped in the slimes and died,’’ the report said.

“In addition an infant kangaroo was observed to be trapped in the slimes and was clearly in distress.

“No action was able to be taken to assist the kangaroo due to the safety risks.’’

Sally Zou made a splash when she first arrived in Adelaide — but in the past 12 months has kept a much lower profile. Picture: Jo-Anna Robinson

A company spokesman, Louis Liu, told the regulator that the animal deaths were not reported because “the company was not aware of the obligation of reporting such situation’’.

The company also stopped mining activities without telling the regulator, in breach of its approvals, and told the regulator this was because it was having financial difficulties.

“Aus Gold Mining Group met some financial difficulties because China implemented significant changes to its foreign exchange control policies earlier this year, which has made it much more difficult and time-consuming to transfer money from China to overseas,” the company is quoted as telling the regulator in September.

“As a foreign investor, Ms Zou, the 100 per cent shareholder and sole director of Aus Gold Mining group, was also affected.

“Ms Zou is trying her very best to restart this project ASAP in the near future.’’

The regulator also says that it was told during the site inspection that key staff, including the general manager, executive team, and all contractors, had been laid off.

“Expert personnel to manage the mine and formulate operational solutions to problems ... were no longer employed at the mine.’’

The regulator was also advised that staff “have not been paid for three months and have either left the company or have been laid off; and staff reported that Aus Gold owes significant amounts of money to business across the region’’.

The regulator said the company and Ms Zou did not respond when told the mining lease would be suspended.

Consideration would be given to revoking the suspension if Aus Gold met a number of obligations.

Aus Gold said in a statement to The Advertiser: “The Good Friday Mine site has been inoperative since August last year due to a technical issue in the gold extraction that must be resolved before the operation can recommence.

“AusGold will work closely with the regulator to ensure it is entirely compliant with all its obligations with a view to recommence operation when the technical issues have been resolved.’’

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