Late last month, days before the State Government went into caretaker mode, Mr Guy recommended the Big Hill Enhanced Development Project be rejected based on his assessment of the environmental effects.

In his assessment, Mr Guy said the environment effects statement process had determined the proposed mine could have significant environmental impacts, particularly in regard to air quality and public health, and was therefore unacceptable.

Stawell Gold Mines general manager Troy Cole said the company was working through Mr Guy’s assessment in the belief any perceived detrimental effects could be satisfactorily addressed.

‘‘During this process we have identified several material defects in the report on which Minister Guy based his recommendation,’’ he said.

‘‘We hope to have these defects addressed before the proposal goes to the statutory decision makers for a final ruling.’’

Mr Cole said Stawell Gold Mines undertook widespread community consultation and prepared a  comprehensive environmental effects statement, which included extensive economic, environmental and social studies, in a bid to win government approval for the mine. 

It is the second time the government has refused an application to mine the Big Hill area.

Mr Cole said the timing of Mr Guy’s assessment made it difficult for the company to engage with government.

‘‘However, we are working through the recommendations to try to find a way forward and to ensure we are prepared to continue discussions with whoever is in government after the election,’’ he said.

‘‘This project will employ 80 to 100 people. This does not include other employment opportunities created outside of Stawell Gold Mines. This employment is extremely important to Stawell’s and Victoria’s economy.

‘‘While we are committed to doing our utmost to preserve these jobs in Stawell, the announcement has made the future uncertain.’’

Mr Cole said he understood the concerns of some people, but was encouraged by the numerous calls and conversations from residents who wanted the company to fight Mr Guy’s decision. 

‘‘This support strengthens our conviction and encourages us to work closely with the new State Government to do what we can to have the proposal ratified,’’ he said.