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ABC News
3 days ago
- Business
- ABC News
Inspections begin on fire-stricken Grosvenor mine ahead of full re-entry
Inspectors have entered an underground coal mine in central Queensland for the first time since an explosion sent miners fleeing to the surface more than a year ago. A Queensland Mines Rescue Service team took the first steps into Anglo American's Grosvenor mine on Wednesday, wearing protective equipment and respirators to carry out "preliminary reconnaissance inspections". The mine was evacuated and sealed after methane gas ignited, creating an underground inferno on June 29 last year. Black plumes of smoke blanketed the nearby town of Moranbah, where residents were told to stay indoors and keep windows shut. A similar explosion at the same mine in 2020 seriously injured five workers. The brief reopening of the mine follows approval by the industry regulator. The Mining and Energy Union has also lifted its ban on entry. Anglo American said it finished safety preparations last week. That included the unsealing of mine shafts, which were first closed last year to starve the underground blaze of oxygen. Mine general manager Shane McDowall said the first re-entry was a "significant milestone." Mr McDowall said staff would re-enter the mine once safety inspections were finished, but mining would not restart for some time. "Our crews have stepped up in amazing ways — solving problems, adapting technology in innovative ways, and rethinking how we do things underground," he said in a statement. Mining and Energy Union industry safety and health representative Jason Hill said while some sites had recovered from similar levels of damage, no-one on the ground believed mining would restart at Grosvenor any time soon. "There's nothing to say it can't return into a full production. It's just a matter of identifying what happened," he said. Mr Hill said one of the hazards would be the lining around mine shaft, which had deteriorated in the fire, damaging the surrounding structure. "It's a matter of monitoring and ensuring that there were no issues that were going to pop up," he said. Mining is also on hold at a neighbouring Anglo American mine, which was also damaged by an underground fire last year. The Moranbah North mine was first evacuated in April 2024, after reports of a dangerous carbon monoxide leak that was later confirmed as an explosion and fire. Nobody was injured in the incident. Anglo American chief executive officer Duncan Wanblad told investors this month it was costing $55 million a month to pay staff and maintain operations at both Grosvenor and Moranbah North. He said the company planned to restart operations at Grosvenor "later this year", with Moranbah North to follow in 2026. In November 2024, Peabody Energy entered a $5.7 billion deal to buy Anglo American's four steel-making coal mines in Queensland, including the two that remained out of action. But the restarting of longwall mining at Grosvenor was a condition of the final sale price. Mr Wanblad told investors he believed both companies still wanted the deal to go ahead. However, Peabody described the explosion at Moranbah North as a "Material Adverse Change" to the deal, saying it would provide an update on its position later this month. Mr Wanblad said any decision to go ahead with the purchase would "ultimately be a Peabody decision".
ABC News
29-07-2025
- 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.
