Higher bonds predicted to hurt smaller miners
Posted
A Kalgoorlie-Boulder based mining company says some of the industry's smaller players will struggle financially as a result of a new system for estimating the cost of mine site clean-ups.
The Western Australian Government has announced a new bond estimation tool that will require mine owners to pay up-front the anticipated costs of rehabilitating an area after it has been used for mining.
General manager of gold production, Dioro, Dale Oram, says the increased bonds, which are expected to double and in some cases triple in the next two years, will add to the increasing pressure on smaller companies.
"There's already big cost increases and so on and production dramas etcetera, but the bonds have always been an issue and I think some will probably not look upon them kindly," he said.
