Owners of Bowen Basin mine enter administration amid coal price slump
It has left about 500 jobs at Bowen Coking Coal's Burton Coal Complex in doubt.
Mark Holland and Shaun Fraser from restructuring firm McGrathNicol have been appointed as voluntary administrators.
In a statement, they said Bowen Coking Coal's operations would continue to trade on a "business-as-usual basis while a sale and/or recapitalisation process is undertaken".
"This includes the operations at the Burton Mine Complex located in the Bowen Basin of Queensland, which will continue uninterrupted," the statement said.
A meeting of creditors will be held by August 8.
Bowen Coking Coal bought the Burton Coal Complex, north of Moranbah, in 2021.
Indonesian contractor BUMA Australia had operated the mine for the past two years, before its agreement expired on June 30, 2025, leaving the owners to oversee operations.
Bowen Coking Coal advised investors it had received a letter of demand for payment of invoices totalling $15,288,017 from BUMA on June 15.
In a statement to the Australian Stock Exchange on Wednesday, the mine owner announced that it had failed to make arrangements with its two largest creditors, BUMA Australia and the Queensland Revenue Office (QRO).
It said a decision to appoint administrators came after its request to the QRO to defer royalty payments was rejected.
The company's board stated the decision "reflects the current challenging environment for the coal industry in Queensland from higher costs, lower global coal prices and higher royalty rates introduced by the Queensland government in 2022".
The Queensland Resources Council said operating conditions in the coal industry had become extremely difficult.
"The announcement will cause deep uncertainty for hundreds of Queensland workers and their families who face the prospect of losing their jobs if the Burton Mine closes permanently," chief executive Janette Hewson said.
She said other mining companies could face similar struggles, with coal prices falling close to 17 per cent lower than they were a year ago.
"Energy and production costs have risen significantly for coal producers while coal prices are stubbornly low and Queensland producers are paying the world's highest coal royalty tax rates," Ms Hewson said.
BUMA Australia declined to comment.
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