Gympie Eldorado Mining has survived an attempt by the State Government to force it into liquidation.
Gympie Eldorado Mining has survived an attempt by the State Government to force it into liquidation. Craig Warhurst

State Government tries to shut down Gympie company

GYMPIE'S troubled Eldorado gold mine has survived an attempt by the State Government to wind the company up in a dispute over late environmental fees.

A lawsuit to tip the company into liquidation was filed in the Brisbane Supreme Court in May.

The company reportedly owed nearly $350,000 in annual and late fees for its "environmental authority” right to mine the site over this financial year.

At the time the Courier Mail reported the mining company was "virtually certain” to be wound up.

However the application was ultimately dismissed by the Supreme Court, and no order issued for costs.

Supreme Court.
Supreme Court. John Weekes

No reasons for the dismissal are given on the court documents.

The court action is the latest step in an ongoing fight between the bodies.

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Last October the Department of Environment and Science won a default judgment in the District Court, with more than $173,000 awarded for the 2018-19 financial year.

The wind-up application was made following repeated requests for payment of the latest fee.

Eldorado was served with a creditor's notice, and when nothing happened the State asked the court to step in.

The mine was bought out of the hands of receivers in 2004 by investors including mining magnate Robert Champion de Crespigny.

The Eldorado gold mine is still believed to have some life left in it.
The Eldorado gold mine is still believed to have some life left in it. AAP

At the time, a spokesman for the company said they considered the mine "highly prospective and under-explored”, owing to a successful exploration the year before.

But operations at the mine were eventually reduced over the next four years and assets were sold in 2010.

A Singaporean mining and metals group took charge of Gympie Eldorado in 2014, before selling it last year.

Records show it is now under the ownership of a single Indian man: Mumbai-based Sagar Zaveri.

It has been suggested by sources that the company is holding onto the mine because the land will front the Gympie Bypass when it is built.

Gympie Times


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