''Young Mining, based in the New South Wales Riverina, has had its licence suspended over unpaid environmental rehabilitation security deposits.

Young Mining has been ordered to suspend all operations from this morning.

The State Government's Department of Industry's Resources Regulator says the company, a subsidiary of Indian-owned company Orind Australia Pty Ltd, owes $500,000 in deposits.

The deposits are held by the Government as security, in the event of environmental damage and in case the company has collapsed and cannot pay for the clean-up.

The NSW Resources Regulator chief compliance officer, Lee Shearer, said the company had been warned about the outstanding money since 2013.

"Young Mining has been given more than sufficient time to pay the additional security deposit," Mr Shearer said.

"The regulator has provided reasonable extensions to the suspension notice to allow the company to meet its obligations.

"Despite repeated assurances from the company, the timelines have not been met and the required security deposit remains outstanding."

Young Mining has a quarry north of Young which the ABC understands employs fewer than 10 staff.

A similar number are employed at another Orind Australia subsidiary, Causmag in Young, which processes the rock into magnesium for various uses, including in agriculture.

The licence suspension means all mining operations must be stopped from today.

A manager at the local Young Mining office told the ABC yesterday he was unaware of the licence suspension.

The department said if the company failed to pay the money, the licence could be cancelled.

The company's directors were saying little, but one said the company was trying to reach a settlement with the regulator.

Editor's note (9/5/16): The NSW Department of Industry's Resources Regulator has since lifted its suspension on Young Mining after the company paid a $540,000 environment rehabilitation security deposit in late August.