Tasmanian government’s Resources Minister Felix Ellis on Tuesday evening directed a West Coast mine, Hellyer Gold Mines, to shut down its operations following its failure to pay the state about $1 million in royalties.
Releasing a statement, Ellis said that despite the government giving multiple opportunities to comply over an ‘extended period’, the firm failed to pay its debts.
Apart from Ellis, Liberal MP Nick Duigan also spoke on the issue and stated that the firm owed the state government ‘around a million dollars’. He even cited potential environmental and statutory compliance concerns. Not only this, the Tasmanian Minerals, Manufacturing and Energy Council’s Chief Executive, Ray Mostogl, said that on top of the government’s debts, the firm owed contractors and suppliers too.
Duigan Defends the Government’s Move
Defending the state government’s move, the Liberal MP said that he knew the mining firm failed to fulfil its financial obligations to the government. Also, the firm didn’t pay the debts to its suppliers and contractors in the region.
Dugian added that the action would affect between 20 and 30 employees, and the government would work with the affected employees, suppliers, and contractors.
Speaking on the same lines, Mostogl said it was high time for the mine’s owner to decide on the future of the firm. He added that in recent years, the firm generated revenues by reprocessing material from the mine’s tailings dams.
However, in 2024, it returned to the underground mine, which needed significant investment in equipment, including the workforce. Mostogl suspected that the firm’s expenses were higher in comparison to the revenues it generated, which in turn led to huge debts that the mining firm owed to the government and its suppliers.
Community Affected to Get Support
In the meantime, Ellis mentioned that the Tasmanian government would help Hellyer mine staff, who have been affected. Ellis said that with access to Employee Assistance Program services, career advice, and pathways to alternative employment, upskilling or reskilling, his government will support affected workers.
Waratah-Wynyard Council’s Mayor, Mary Duniam, cited concerns about the closure of the mine, saying this would affect the region’s economy.
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