PERTH (miningweekly.com) – ASX-listed Wollongong Coal has forestalled the suspension of mining operations at its Wongawilli colliery, in New South Wales, after reaching an agreement with the Department of Planning and Environment (DPE) over a number of late payments of various authorization fees.
The DPE in February threatened to issue a direction under the Mining Act to suspend operations at both Wongawilli and the non-operational Russell Vale colliery, and in March started proceedings in the Local Court relating to a number of late payments of authorization fees.
Wollongong at the end of last week told shareholders that the company has now offered an enforceable undertaking to address the DPE concerns, with the company undertaking to engage an independent person to conduct a review of its systems and processes for meeting its obligations and payment requirements under the Mining Act.
The company will also provide a report on recommendations and actions of the system review, while also conducting an independent review of the company’s financial capacity. Furthermore, the company will also provide refresher training to administrative staff around compliance obligations under the Mining Act, as well as paying the authorization fees for 2018, within one month of accepting the undertaking.
Wollongong would also be required to pay fees for 2019 and 2020 for each authorization some 12 months in advance of each due date, and will provide two bank guarantees of A$150 000 each as an assurance of the future payment of authorization fees.
The company will be liable for a 15% penalty on any late payments, and will also be required to pay the Regulator’s investigation and legal costs of some A$24 350.
In return, the DPE will not take any further action to suspend Wollongong’s operations, while court proceedings will also be discontinued.