Fund May Foot Ellendale Mine Environmental Clean-up Bill

Mining and Exploration
03/07/2015 07:00

According to The West Australian Kimberley Diamonds' (KDL) decision to shut Ellendale has thrown into limbo the company’s ability to meet rehabilitation costs for the mine. KDL placed the operating subsidiary that runs Ellendale into administration on Wednesday, leaving more than 100 workers stranded without their past month’s pay. Sources suggest KDL owes trade creditors as much as $10 million, plus accrued entitlements for its workers. That figure sat at more than $3 million at June 30 last year, according to its last annual report. But KDL seems set to also transfer the liability for rehabilitating the mine to the MRF as it walks away from its collapsed subsidiary. The Western Australian government’s Mining Rehabilitation Fund (MRF) could be forced to cover the estimated $30 million environmental clean-up of the Ellendale diamond mine.