A Balzan-born bishop in Australia who has been described as an “exceptional pastor” passed away on Monday, aged 62, at a Melbourne hospital, after the recurrence of a blood disorder.

Bishop Joseph Grech was one of Australia’s youngest Roman Catholic bishops, a tireless worker with young people and refugees. He was made bishop in 2001 and was responsible for emigrants, refugees and young people in the name of the Australian Episcopal Conference. He was bishop of the Sandhurst diocese in northern Victoria.

The president of the Australian Catholic Bishops Conference, Archbishop Philip Wilson, said Bishop Grech was an “exceptional pastor”.

“He has made a tremendous contribution to the Church in Australia because of his deep faith and spirituality, which has been shown especially in the zeal with which he dealt with issues of migrants and refugees and his outreach to young people,” he said in a statement.

Speaking from Rome, the Australian Ambassador to the Holy See, Tim Fischer, said Bishop Grech was one of Australia’s youngest bishops. He said the Sandhurst diocese and Australia had lost “a very dedicated bishop and citizen” who greatly inspired people, especially the young.

“Only in October he was larger than life here in Rome, leading a group of Sandhurst pilgrims to the canonisation of St Mary MacKillop,” Mr Fischer said. “He returned to Australia via Malta, where he was born in 1948 and where in November 2010 he attended and helped with the ordination of Sandhurst priest, Father Robert Galea.

“In the decade he was bishop of Sandhurst, he gave generous, warm and open leadership, which will be hugely missed.”

Bishop Grech found himself enmeshed in controversy earlier this year and apologised over a breach of confidentiality in connection with a woman’s statement that she had an affair with her parish priest.

The Age newspaper reported in June that Bishop Grech, in naming the Eaglehawk woman, Michelle Goldsmith, had broken the rule designed to protect a clerical abuse victim.

The parish president had told The Age that Bishop Grech indicated Mrs Goldsmith was “crazy” when the bishop twirled his finger around the side of his head and said “that girl needs professional help”.

Bishop Grech conceded he was sanctioned for talking with the parish president, but told The Age he was concerned only for Mrs Goldsimith’s welfare and had “no wish... to undermine anybody”.

His letter to Mrs Goldsmith said he regretted the distress caused by his general “interaction with you”.

A Mass was held for Bishop Grech at Bendigo’s Sacred Heart Cathedral yesterday night.