Kalgoorlie gold producer fined for breach

23/12/93

Mines Minister George Cash has fined a major Kalgoorlie gold producer $3,000 for a breach of condition applying to one of its leases.

The fine imposed on Kalgoorlie Consolidated Gold Mines Pty Ltd (KCGM) relates to leakage from one of the company's tailings dams.

KCGM is the operator of General Purpose Lease 26/8 and Mining Lease 26/86 near Mt Charlotte on which the Oroya tailings structure is located.

"Under the terms of the leases, any leaks or spillages associated with the operations of the tailings dam must be immediately notified to the District Mining Engineer at the Department of Minerals and Energy," Mr Cash said.

"This requirement was not met and the adjacent tenement holder, Optimum Resources, subsequently complained to the department."

KCGM has now solved the problem including constructing fences, interceptor trenches and pumps.

Mr Cash issued the company with notice of his intention to forfeit the lease in early November.

"However a full explanation from the company of the circumstances surrounding the breach satisfied me it was not serious enough to warrant forfeiture," he said.

Media contact:  Caroline Lacy  222 9595