31st August 2016

Media release

The NSW Department of Industry’s Resources Regulator has today lifted its suspension notice on Young Mining.

Young Mining’s mining operations were suspended by the Regulator due to a breach under the Mining Act related to the company’s failure to pay a $540,000 environmental rehabilitation security deposit.

Young Mining has today provided the required security in accordance with the Department's policy by way of a deed of security deposit bond issued by an Australian Prudential Regulation Authority (APRA) supervised financial institution.

The suspension notice had been the subject of action in the Land and Environment Court and the Supreme Court.

“The NSW Resources Regulator’s actions to suspend Young Mining’s mining operations have been appropriate and reasonable,” said Chief Compliance Officer, Ms Lee Shearer.

“The Government’s position on this issue is very clear – environmental rehabilitation costs must be met by the mining licence holder.”

Environmental rehabilitation security deposits and requirements for progressive rehabilitation during the life of a mine are part of the regulatory framework which ensures a viable and sustainable mining industry in NSW.

A security bond is required prior to the commencement of any activity on title and is continually reviewed and adjusted to reflect the actual rehabilitation liability throughout the life of a project.

Security bonds are only released when the Department is satisfied that the titleholder has met designated rehabilitation objectives and final land use completion criteria.

DRE currently holds $2.15 billion in security deposits relating to environment and rehabilitation from title holders across the state.