Hellyer gold mine forced to cease operations

The Tasmanian Government has directed Hellyer Gold Mines to halt its operations immediately, citing “multiple and significant non-compliances with financial and operational requirements”.

Hellyer has been accused of owing about $1m in royalties to the Tasmanian Government.

Tasmania Business, Industry and Resources Minister Felix Ellis says the reasoning behind the decision is to uphold accountability and consistency across regulatory standards.

“When a company extracts and sells Crown-owned mineral, it must meet its obligations,” he said.

“This action is necessary to prevent those matters worsening.”

According to Minister Ellis, Hellyer has received extensive opportunities to comply under the Mineral Resources Development Act 1995 but has failed to meet obligations.

In a statement, Hellyer Gold Mines reported the notice was issued without opportunity for discussion or resolution, despite working closely with Mineral Resources Tasmania (MRT) on a government-approved environmental bond program and a broad range of obligations

Hellyer Gold Mines chief executive Graham Cox says is a cornerstone of the northwest Tasmanian economy, contributing millions in wages, royalties and local procurement.

“[The decision is] reckless, unnecessary and completely at odds with the state’s claims of being open for business,” he said.

“We are absolutely astonished by the behaviour of the Tasmanian Government. This is a shocking and deeply damaging move to suspend mining operations without seeking to understand factual information prior to making decisions.”

The decision to cease operations may affect more than 70 workers and contractors as well as local suppliers.

Minister Ellis addressed these concerns reassuring affected workers will be supported through multiple services, alternative employment or reskilling.

Minister Ellis says mining operations may only resume once the company has substantively addressed its non-compliances.

“If the company resolves these matters, operations could recommence quickly and lawfully,” he said.

“MRT has worked closely with the Environment Protection Authority and WorkSafe Tasmania to ensure this direction is carried out safely and in a way that manages environmental and operational risk.”

Hellyer Gold Mines has confirmed it remains ready to resume operations immediately. The company is seeking urgent dialogue with the Tasmanian Government to resolve any outstanding administrative matters constructively and transparently.

“We are committed to doing the right thing,” Mr Cox said.

“We’ve worked in good faith to take on an operation that was severely distressed, riddled with debt and turn it around within a short period of time to become an environmentally and financially responsible mining operation and all we ask is that we be treated with the same good faith in return.

“Tasmania cannot afford to lose the jobs, the investment or the credibility that this mine represents.”