Former Ballarat Gold Mine operator Balmaine Gold, officers prosecuted over rehabilitation bond

Balmaine Gold “manifestly failed” in its duties and its non-compliant officers had “no place” in the mining industry, a court has heard.

The former operator of Ballarat Gold Mine, along with three of its officers, have faced Melbourne court. Picture: NCA NewsWire / Ian Wilson

Two officers of Ballarat Gold Mine’s former operator “completely disrespected” their responsibilities in failing to appear at a legal hearing in which they were recently prosecuted, a court has found.

Balmaine Gold Pty Ltd and three of its former officers were sentenced at Melbourne Magistrates’ Court on June 18 for failing to maintain a sufficient rehabilitation bond.

Mine operators must lodge rehabilitation bonds with the Earth Resources Regulator to fund site rehabilitation if they default on their obligations.

The court noted that Balmaine Gold had “manifestly failed” in its duties and that company officers who could not comply with their obligations had “no place” in the mining industry.

Following a 2021 assessment of the rehabilitation costs at the Ballarat Gold Mine, the Earth Resources Regulator required Balmaine Gold to enter into a further rehabilitation bond of more than $4m by June 2022.

A rehabilitation bond is a security covering 100 per cent of an operator’s estimated rehabilitation costs in case the state has to step in for a business which fails to meet its obligations. Picture: Ballarat Gold Mine

Two of Balmaine’s officers, Jiajia Yao and Liang Yao, were convicted and fined in their absence, which Resources Victoria said could limit their ability to take a similar future role within the state’s resources sector.

Balmaine Gold and its former director Xu Li pleaded guilty and were each fined $2000 without conviction.

The owners of the Ballarat Gold Mine have met their rehabilitation bond requirement.

Resources Victoria chief executive Matt Vincent said the prosecution “sends a strong message that those with responsibilities in the state’s mining sector must respect our regulations and act in accordance with the important provisions in place.”

“Two of the directors have been found to have disrespected the legal process and paid the price with convictions recorded against their names.”

“We have regulatory processes in place to ensure that the community and state are no longer left with the cost should a company operating in Victoria’s mining industry today fail the system.”