Latest news with #Hunter Valley
ABC News
a day ago
- Business
- ABC News
Dartbrook Hunter Valley coal mine cuts workforce as debt snowballs
A New South Wales coal mine on the brink of collapse has terminated more than half its staff while its debts appear to have soared to more than $800 million. Dartbrook Mine, an underground thermal coal joint-venture by Australian Pacific Coal and Tetra Resources, had sat empty for 19 years until it was revived at the end of 2024. But the Hunter Valley mine went into external administration and receivership earlier this month, after failing to meet its obligations for a $174 million loan to Singaporean commodities giant Vitol. The receivers, who are operating the mine, terminated more than 100 miners or more than two-thirds of Dartbrook's workforce, on Monday. Do you know more about this or have a similar story? Email FTI Consulting, the firm acting as the receiver that is operating the site, said in a statement making the mass terminations "wasn't an easy decision" but it was "necessary for Dartbrook's long-term future". Previously, FTI Consulting said it had been appointed as receivers to support the "long-term future" of the Dartbrook coal mine. "We intend to continue operations onsite and work with relevant stakeholders while an urgent assessment of options is undertaken," receiver Ben Campbell said previously in the statement. Mining and Energy Union (MEU) president Robin Williams said the mass terminations were "disgraceful". "Over the weekend, operations were wound down while workers were left in the dark, waiting to hear if they would be required," he said. "Many of them have now been unceremoniously notified by email that they no longer have a job. "It's hurting families and the local community." Mr Williams said that while employees had been cut, labour hire contractors at the site had been kept on and claimed that the decision was made without proper consultation with workers, breaching the enterprise agreement. The MEU said it would fight for workers and has already filed a case with the Fair Work Commission. It comes as Dartbrook's debt and number of creditors continue to climb. Minutes from a creditor's meeting held earlier this month showed that at least 51 companies claimed they were owed money. The total debts exceed $820 million, not including its $174 million loan to Vitol. The largest creditor was UK-based non-bank loan agency, Global Loan Agency Services (GLAS), which claimed it was owed more than $800 million. The ABC understands that they have claimed $202 million from four different entities. The ABC has contacted GLAS for comment. Administrators from Deloitte were appointed to another entity, Tetra Dartbrook, at the end of last week. The Deloitte administrators have applied for a six-month extension to push back the next time creditors will meet until February next year. The matter is being heard at the Federal Court on Wednesday. Deloitte was already acting as the administrator of several entities relating to Tetra Resources, while insolvency firm McGrath Nicol is administering entities involved with Australian Pacific Coal. Local businesses owed money have voiced their concerns about those debts ever being paid, especially in the wake of the job cuts. Hunter Valley business EMF Group is subcontracted to work at Dartbrook's coal washery and is owed $282,000. Director Jason Anderson said after hearing news of the mass redundancies, it was "not looking good". Jim Eastley, a Hunter Valley local, said his business, CE Mining, was owed more than $500,000. "It's pretty tough to swallow," Mr Eastley previously said. "We're hoping that things can turn around and the mine will become productive … but that's a long way off at the moment." Muswellbrook Shire Mayor Jeff Drayton previously said the debts Dartbrook owed local businesses were "enough that it might be enough to break some of these smaller companies". He said half a dozen local businesses with debts exceeding $3 million between them had contacted him. Cr Drayton said Dartbrook also owed the Muswellbrook Shire Council unpaid rates.
ABC News
6 days ago
- Business
- ABC News
Mount Pleasant coal mine expansion halted after community legal challenge
A Hunter Valley community group has won a legal challenge to bring one of the largest coal mine expansions in New South Wales to a halt. In 2022 the Independent Planning Commission (IPC) approved MACH Energy's application to extend the life of its Mount Pleasant coal mine to 2048 and increase its output. The Denman Aberdeen Muswellbrook Scone Healthy Environment Group (DAMSHEG) appealed the approval in the Supreme Court, arguing that the impacts of the project on the environment and climate were not properly considered by the IPC. The NSW Court of Appeal sided with the group on Thursday morning. DAMSHEG president Wendy Wales said it was a "landmark case". "We're just over the moon," she said. The group had requested a judicial review of the approval but that was denied by the Land and Environment Court. The Court of Appeal ruling has rendered the IPC's approval invalid. It will be subject to a review in the Land and Environment Court. The proposed expansion would allow the company to mine an additional 247 million tonnes of coal by 2048. In court DAMSHEG argued that the impact of scope 3 emissions — those created from the burning of exported coal — was not adequately considered. Justice JulieWard ruled there was "nothing" in the IPC's reasoning that showed it had accepted the scope 3 emissions would contribute to global climate change. "Thus, I consider that it has been established that the commission failed to consider a mandatory consideration in this regard," she said. Ms Wales said she wanted the region to move away from reliance on fossil fuels. "We would like to see that Mount Pleasant doesn't go through till 2048, doubling its rate of production," she said. The judge ordered MACH Energy to pay the costs incurred by DAMSHEG for the appeal. The ABC has contacted MACH Energy for comment. The case will now proceed to the Land and Environment Court for a decision on whether the expansion approval should be reversed. The mine employs more than 400 people in the Upper Hunter region and was previously approved to mine until the end of 2026. Ms Wales says bringing new jobs to the Muswellbrook region needs to be the priority. "We need to be working at how we do that and it takes all the collective brains to work towards that," she said. "[Muswellbrook Shire] Council has been calling for much more investment in and attention to how we're going to look after the workers and the rehab of our area."
