Ballarat Gold Mine enters administration, jobs in limbo

About 200 workers at a Ballarat mine are hoping their jobs will be safe after management was placed into administration.

Ballarat Gold Mine has entered administration. Photo: File

Emergency negotiations are believed to be underway to save a Ballarat gold mine that was placed into administration on Thursday.

According to the Australian Securities and Investments Commission, external administrators have stepped in at the Mount Clear mine, which is run by Balmaine Gold Pty Ltd and employs about 200 people.

Accountant firm Hall Chadwick will take charge of the Australian subsidiary of Singapore‘s Shen Yao Holdings.

“The current management has worked hard to improve the business’s position, though it is a case of too little, too late due to the previous management group’s financial mismanagement of the mine,” the AWU said in a statement.

“Additionally, worker safety was compromised during their time in charge.

“During a recent meeting with staff, we were informed of the possibility of a large investment bank financially backing the mine as soon as this week, which would allow the company to continue to operate as per normal.

“We remain optimistic that this development will help to stabilise the financial position of the mine.”

The union said it was organising meetings with members and with state MPs about possible government support for the mine.

Victoria branch regional organiser Mick Derrick said he was “positive that the workers will keep their jobs”.

“However, we will be ready for any change of circumstances,” he said.

A security guard for the site who answered the phone said there was “no comment” at this stage and that managers were in meetings.

The company has an application before the City of Ballarat for a new tailings dam in Mount Clear, where its current storage of mine waste is approaching capacity.

The mine opened in 2005 but has faced many difficulties.

Balmaine Gold took over the site in March 2010 from Lihir Gold, acquiring the tenement package including the mill and equipment.

First gold production commenced during the third quarter of 2011.

The Ballarat Gold Mine is owned by Golden Point Group Pty Ltd, which is not in administration.

In 2021, Earth Resources Regulation took action against the mine – one of the biggest in the site – to ensure it complied with obligations and minimised operations risks to “protect the environment and land”.

The regulator issued a notice to Balmaine Gold to “stop using a waste rock dump, which exceeded the company’s site approvals”.