Dartbrook Hunter Valley coal mine cuts workforce as debt snowballs
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.
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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.
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