Young Mining operations suspended due to unpaid debt

August 5, 2019 Mining Editor

The NSW Resources Regulator has suspended operations at Young Mining Company’s Thuddungra operations due to its failure to pay a debt (its rehabilitation security deposit). 

Executive Director Anthony Keon said the suspension will take effect from Thursday 8 August 2019 and remain in place until the full security deposit is paid. 

“The Regulator takes its environmental obligations very seriously and will take strong action on any titleholder or mining company that does not comply,” Anthony Keon said. 

“Environmental rehabilitation security deposits are required on all mining lease authorisations and must cover the full cost of rehabilitation. 

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“This ensures the State does not incur financial liabilities should an authorisation holder default on their rehabilitation obligations. 

“In this instance, Young Mining has failed to pay the full security deposit of $1,787,641 required for operations at mining lease CML 15.” 

This is the second time Young Mining has been suspended for failing to pay a security deposit. In 2016, the NSW Government’s Department of Industry’s Resources Regulator said the company owed more than $500,000 in deposits dating back to 2013 and was suspended from operating.

The company was also was instructed to cease operations in January 2019 after a mine safety inspection uncovered a range of non-conformances at the mine.

The Thuddungra open-cut magnesium mine located near Young, in the South West Slopes Region of New South Wales, has been reportedly operating since 1935.

Magnesium is only mined in five other locations in New South Wales, these being; Attunga, Warialda, Nyngan, Cobar and Fifield.

The Thuddungra Mine was reportedly owned by an Indian company, Excel Colours and Fritz, through its wholly-owned subsidiaries, Orind Mauritis Private Ltd, Orind Australia, Causmag International and Young Mining Company Pty Ltd.

The group’s main activities include the following:
– Global trading
– Manufacturing colours and stains
– Mining and mineral processing
– Engineering and refractory application
– Refractory production

The Thuddungra Mine is part of the group’s mining and mineral arm that has been mining and manufacturing high-grade magnesium oxide for use in the pharmaceutical, industrial, animal health and agriculture industries for more than 70 years.

Image: Illustration purposes only – not actual mine.

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