Copyright 9news
A Tasmanian gold mining boss has issued a blistering message to the state government after being ordered to shut down operations over unpaid debts. Hellyer Gold Mine was issued a cease work notice by the state's Resources Minister Felix Ellis earlier this week with $1 million in royalties still owing to the government. The mine – which employs around 70 workers – has been accused of not meeting its financial obligations to the government, suppliers and contractors in the region. READ MORE: Epstein claimed Trump knew about his conduct, emails say READ MORE: Former prince's name changes again after royal decree found However, owners claim its employees have been "unfairly punished". Chief executive Graham Cox blasted the decision as "reckless, unncecessary and completely at odds with the state's claims of being open for business". "This is an act of bureaucratic overreach that puts hardworking Tasmanians out of jobs and jeopardises a world-class, Australian-owned business that has worked hard to meet every obligation placed before it," Cox said. "We have acted transparently, responsibly and in full cooperation with the Tasmanian government. "To shut down a compliant, productive and environmentally responsible operation without warning is madness." Hellyer was reopened on Tasmania's west coast a little over a year ago after being closed for more than a decade. Cox claims the mining company has been transparent and has paid back "significant" royalties and taxes owed to the government by former owners, including $8.6 million in Royalties and Environmental Bond. READ MORE: Queensland residents warned after measles detected at concert, tourist spots However, the minister said Hellyer still owes around $1 million. "When a company extracts and sells a Crown-owned mineral, it must meet its obligations," Ellis said. "Hellyer has fallen significantly behind in paying their debts due to the crown and other compliance issues have continued to escalate. "This action is necessary to prevent those matters worsening." Ellis also alleges there has been a "range" of non-compliance issues at Hellyer, which he said the leadership team have been given a chance to address. "We've given them multiple opportunities over an extended period of time to rectify these issues," he added. "Mining operations may only resume once the company has substantively addressed its non-compliances." Mineral Resources Tasmania (MRT) has confirmed Hellyer's authority to mine under the Mineral Resources Development Act 1995 has been revoked. Ellis said he has been "deeply disappointed" with Hellyer's leadership. "We've been working with them, the ownership and the mine, for more than a year to try and get them back into compliance," he told the ABC. "They've failed to do so. "It's important that mining companies are paying their way, [that] they're paying their bills." Cox, however, remains steadfast that Hellyer has been "blindsided" by the decision. "Seventy Tasmanians and their families have been blindsided by this decision, people who should be preparing for Christmas are now wondering how they'll afford it," he added. "We have paid our dues, we have done everything asked of us and yet we've been shut down without warning or reason." READ MORE: Storms to hammer Australia from top of NT to bottom of SA The mining boss is now calling on Premier Jeremy Rockliff to intervene. "Tasmania's economy depends on strong industries like mining, agriculture and energy," Cox said. "If responsible businesses can be treated like this, the entire state's investment reputation is at stake." Hellyer has been closed during a significant gold price boom in Australia. The price of gold has recently surged to astronomical highs, reaching $6755 for an ounce last month. Much of gold's rise has been attributed to its status as a safe-haven asset. There is a large proportion of goldfields in Tasmania. Beaconsfield Gold Mine, one of the biggest gold mines in the country, is located in northern Tasmania. DOWNLOAD THE 9NEWS APP: Stay across all the latest in breaking news, sport, politics and the weather via our news app and get notifications sent straight to your smartphone. Available on the Apple App Store and Google Play.
