Bingo Industries Limited refers to its market announcement of 19 October 2017, in relation to issues raised by the Environment Protection Authority about the company's operations exceeding its licensed processing limits at Bingo's Minto facility. As advised, Bingo reached agreement with the EPA regarding the operation of the Minto recycling facility and, at the time, it was also noted that the EPA may seek to impose a fine on Bingo in relation to this matter. Bingo has now received notification from the EPA that the regulator is seeking to impose a fine. The prior agreement with the EPA on the facility avoided the need for court proceedings on the issue of the operations for the balance of the annual reporting period under the Environment Protection Licence ("EPL"). However, the EPA has indicated there will be separate court proceedings in relation to any monetary penalty that is to be imposed as a consequence of the licence breach. The EPA has not informed Bingo of its view on the quantum of the fine that it will seek to impose. However, Bingo does not expect that any fine imposed will be material to earnings. Bingo had been operating above capacity at Minto on the understanding that a State Significant Development ("SSD") application would be approved and had been in ongoing dialogue with the EPA in this regard. As previously advised, Bingo has provided the EPA with monthly processing data and continues to be fully transparent in the provision and auditing of information in respect to all of its operating facilities. Bingo submitted a SSD application in 2016 to increase processing capacity at its Minto facility from its licensed 30,000 tonnes per annum to 220,000 tonnes per annum. A decision is expected in first quarter if 2018; all steps required to achieve consent to redevelop the site have been completed and are now with the Department of Planning for final approval. Bingo notes the approved upgrade of the Mortdale facility (announced on 9 January 2018). Completion of this upgrade will further enhance Bingo's network of waste management facilities and enable Bingo's initiatives to support the NSW State Government's identified objectives of ensuring more waste is reused and recycled to enhance the development of a circular economy and help divert the increased volumes of waste now in the market from landfill.