The ABC understands administrators have accepted a creditor vote to sell Ballarat Gold Mine after 10 months under administration.
Key points:
- Creditors met to decide the future of the Ballarat Gold Mine on Tuesday
- Balmaine Gold, the company which runs the mine, went into administration in March
- The Australian Workers Union is disputing the administrator's view that the majority of creditors voted for sale
But the Australian Workers Union is disputing the outcome and has raised concerns with the meeting process, believing a majority of creditors actually voted against the sale motion.
The union had been pushing for the vote to be adjourned to allow more time to properly review the proposal, but said administrator Hall Chadwick abruptly ended the meeting after declaring the sale vote passed.
Ballarat Gold Mine employs more than 200 people and dozens of Ballarat businesses are owed money since the company which runs the mine, Balmaine Gold, went into administration in March.
Hall Chadwick has been contacted for comment.
Vote disputed
The ABC understands Tuesday's vote was to sell the mine to Singaporean registered company Tomson which has shares in Shen Yao Holdings Limited, the parent company that purchased Ballarat Gold Mine in 2019.
It is understood four companies had bid on the mine during an expressions of interest process and the creditors meeting had been delayed multiple times due to ongoing administrator negotiations on those bids.
Australian Workers Union regional organiser Ross Kenna said Hall Chadwick had initially provided a creditors report recommending liquidation of the mine early last week.
But the recommendation was changed to sale late on Friday evening after improvements to the bid.
Mr Kenna said he was not happy with how the creditor's meeting played out.
"We do not believe the vote was in the affirmative, we believe it was in the negative. That was our read from the room," he said.
"We believe there was a significant lack of transparency in the process, raising questions about potential decisions made before the vote took place.
"We are seeking clarity from the administrators. The employees of the mine who were there aren't very happy at all."
It is believed there were about 80 people in the meeting room and more online.
The vote was conducted by a show of hands.
"If it does transpire everything was above board and there is proof … we will work with anyone who wants to keep the mine going," Mr Kenna said.
"Our one aim is to make sure this mine continues to run."
Period of uncertainty
The mine has been operating as usual during administration, but it has been a period of extreme uncertainty for workers due to the administration process and a dispute over the approval of a new tailings dam.
Gold production paused last year when the mine's current tailings storage facility reached capacity, but production resumed when the mine received approvals to continue using the facility until early next year.
City of Ballarat ultimately approved an application for a new tailings dam despite strong resident opposition.
Residents are now taking the matter to VCAT, with a compulsory conference scheduled for next week.
The mine has had a chequered safety history, with a tunnel collapse in 2021 triggering an Earth Resources Regulation investigation.
There is a long history of gold mining in Ballarat, with gold first discovered in the town in 1851 and sparking the Victorian gold rush.
The current mine is a deep network of tunnels under Ballarat streets, buildings, and homes.