More than 500 jobs in jeopardy as Bowen Coking Coal appoints McGrathNicol Restructuring as voluntary administrator

Sky News AU

30-07-2025

More than 500 jobs are in jeopardy after a coal company in Queensland appointed administrators amid challenging business conditions and financial strains.
Bowen Coking Coal on Wednesday appointed Mark Holland and Shaun Fraser from McGrathNicol Restructuring as administrators.
It followed failed discussions with lenders and after the company could not secure a cash injection to save the business.
The company said 'the current challenging environment for the coal industry' due to higher costs and lower global coal prices had led to its collapse.
It also said the Queensland government's progressive royalty structure - which was imposed in 2022 - had hurt the company's bottom line.
Bowen appointing administrators follows the Queensland Revenue Office rejecting the company's submission for these royalty payments to be deferred.
'The decision to appoint administrators is very disappointing,' the company said in a statement to the ASX.
Bowen had opened its Burton mine, located about 160kms east of Mackay, in 2022, but the administrators may now sell the asset.
'The Burton Mine Complex is a quality asset, and management has been successful in delivering operational improvements that have seen the company transform Burton into one of the most productive and low-cost metallurgical coal mines in Australia,' Bowen said.
'The administration process is expected to provide a window which will allow for a sale or recapitalisation to be completed.'
The voluntary administrator confirmed it has taken control of the company and will ensure it continues to operate until next steps can be determined.
'The Administrators have assumed control of the BCB Group's operations and intend to continue trading on a 'business as usual' basis while a sale and/or recapitalisation process is undertaken,' McGrathNicol Restructuring said.
'This includes the operations at the Burton Mine Complex located in the Bowen Basin of Queensland, which will continue uninterrupted.'
Bowen stopped trading on the ASX in June.
Its share price had plummeted from almost $40 in early 2022 to seven cents when it halted trading.
In June, Bowen warned it would be forced to halt operations if market conditions did not improve.
The coal operation's collapse comes as Australia's heavy industry continues to struggle under high power prices, which has forced many plants to beg for government handouts.
Nickel smelter Glencore recently revealed it is on the brink of collapse in a threat to 17,000 jobs.
Rio Tinto-owned Tomago, which is Australia's largest aluminium producer, is seeking billions of dollars from the federal and NSW governments amid high power prices and as cost-effective and consistent renewables remain largely unavailable.
Two Australian smelters owned by international minerals and metals producer Nyrstar are also under threat and the local CEO has begged various state and federal governments for a handout as losses mount to "tens of millions a month".