Ballarat Gold Mine workers have been assured the outlook for the business is "hopeful", despite its rocky financial history.
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Accounting firm Hall Chadwick stepped in as external administrator to mine operator Balmaine Gold Pty Ltd last week, leaving about 200 workers questioning their job security.
The Australian Workers' Union has met with the administrators several times since the announcement and remains confident "workers will keep their jobs".
At one meeting, the possibility of a large investment bank financially backing the mine was reportedly discussed, boosting optimism that the mine's financial position would soon be stabilised.
The union's stance is that the current management has "worked hard to improve the business's position" after "financial mismanagement" and worker safety "compromises" under previous management.
They've acknowledged the need to be "ready for any change of circumstances" and assured members they will be looked after in the event of redundancies.
They're also exploring the possibility of state government support to help secure the mine's long-term future.
"We will continue to monitor the situation closely and take proactive measures to address any potential risks to job security," AWU organiser Ross Kenna stated in a media release.
"Our top priority remains the well-being of our members and we are committed to keeping them informed of any updates or changes that may affect their employment."
The mine has suffered ongoing operational issues in recent years, as it has outgrown its tailings storage facilities.
The business would need a cash injection in the tens of millions of dollars to get back on track - some insiders estimate $50-60 million over the next two to three years.
A source who did not wish to be named said the business had the potential to make "reasonable" profits if it could be brought back to a state of being able to "weather storms" such as gold and energy price fluctuations.
"It will never be a massive gold mine, but at its best it can be a good, medium-sized mine that injects wealth into the local community," the source said.
Some are predicting Balmaine Gold's parent company - Singapore-based Shen Yao Holdings - could sell the business, with a number of potential buyers reportedly "sizing it up".
A big question mark remains over the fate of a new tailings dam proposed to increase storage capacity at the Mount Clear mine site.
An active planning application is before the City of Ballarat council after the mine ceased ore processing late last year when its existing tailings dam neared capacity.
If the new dam does not go ahead, alternative options include dry stacking and underground storage, however these could be less cost-effective.
Hall Chadwick issued a statement on Tuesday evening that it would work with secured creditors, state government regulatory bodies, key suppliers and contractors to "ensure trading operations can continue throughout the administration period", including "continuation of employment of all employees".