It appears unlikely the New South Wales Government will allow the operators of the Endeavor Mine at Cobar to access funds set aside for rehabilitation.
CBH Resources has threatened to close the mine in two months if it cannot access the money held by the State Government.
A spokesperson for CBH Resources told MINING DAILY the company needed the $12 million bond refunded and was willing to offer some of its own properties in exchange.
“All mines are required to pay an environmental bond to cover the cost of rehabilitation,” the spokesperson said.
“In the past the mine was only required to pay a partial amount of the bond, however, this time the NAB wanted full cash backing and this is where the problem started.”
A spokeswoman for the NSW Minister for Mineral Resources, Ian Macdonald, said the proposal is inconsistent with current Government policy.
The spokesperson said the security bond system enables the Government to carry out rehabilitation if a company defaults on its obligations.
Cash or a bank guarantee is required so funds can be immediately made available, the spokesperson said.