The man promoting a controversial underground gold mine near Majors Creek was in charge of an Australian mine in the Philippines which discharged cyanide-laden waste into creeks, killing fish and other marine creatures.
The Philippines Government imposed a record fine of $A267,000 against Lafayette after investigating two instances of cyanide in water surrounding its polymetallic project site in 2005.
Dargues Gold Mine at Majors Creek.Credit: Rohan Thomson
Lafayette Mining chief executive at the time, Andrew McIlwain, has recently has been proposing cyanide processing near Majors Creek, at the head of the water catchment for up to 100,000 people on the South Coast.
In a 2008 report Oxfam mining ombudsman said mining at Rapu Rapu was suspended when mine waste discharged, which contained 633 times the standard for cyanide set by the Philippines Department of Environment and Natural Resources.
Last week, Unity Mining withdrew its proposal for cyanide processing at Majors Creek because of strong community objections. Mr McIlwain also announced his resignation.
Subsequently when asked, Mr McIlwain told the Bay Post/Moruya Examiner he was surprised Rapu Rapu mine's past had not come to light earlier, but was not a factor in his decision to resign.
"What happened in the Philippines was one of sabotage," Mr McIlwain said. "In fact it didn't hurt anyone and it didn't kill fish."
Majors Creek Catchment Guardians president Matt Darwon said although opponents were aware of Mr McIlwain's tenure at the Rapu Rapu Mine, they had decided to focus only on the proposed development east of Canberra.
Scientists have objected to the proposed tailings dam design at Majors Creek, saying it was based on flawed rainfall data and would fail during high rainfall. Mr Darwon is now going back to the original application, because he says key data for the original tailings dam had not been adequately scrutinised.
While Unity has withdrawn cyanide processing, it is still seeking approval to modify its mining operation. It wants to extending the life of the mine for four years until 2022, increase ore extraction from 1.2 million to 1.6 million tonnes and increase the capacity of a tailings dam and construct a vehicle crossing over Spring Creek.
Unity has appointed an acting chief executive, and is looking at other options for off-site concentrate processing. Bendigo has previously been mentioned, but in a radio interview last week, Greater Bendigo Mayor Peter Cox said the miner would strike opposition.
Cr Cox said Bendigo had a long and rich history of mining. If de-watered, you could walk through the old mining tunnels from one end of town to the other. Unity had been active, but had not been active in the past three years, and the community wanted them to rehabilitate four sites.
Cr Cox, who heads an environment review committee, said under the Mines Act the miner had no timetable for rehabilitating sites.
"It amazes us a miner can do so much work and perhaps damage the environment and move on to another site without rehabilitating the work they have already done," Cr Cox said.
At Woodvale near Bendigo an evaporation dam had been pumped out continuously for 30 years, and in summer when it dried out, dust and arsenic blew around the community.
Cr Cox said Bendigo community would be concerned if Unity trucked ore from Majors Creek through their town to a processing site.
"A mining company can only operate effectively when they have the sound extraction process, that will create wealth," Cr Cox said on ABC radio. "Now, that is a win/win for the community and the mining company. But, as important there needs to be a social contract between the community and the local mining company."