Hundreds of Queensland mining jobs at Bowen Coking Coal are in jeopardy after administrators appointed

Hundreds of mining jobs are in jeopardy after a coal miner struggled to pay back royalties and investors, resulting in the company appointing administrators. Bowen Coking Coal appointed McGrathNicol voluntary administrators on Tuesday after it failed to secure fresh capital and negotiate new terms with its two biggest creditors – BUMA Australia and the Queensland Revenue Office (QRO). The company told ASX the decision to appoint administrators was disappointing and followed the QRO’s rejection for a short-term deferral of royalties. “The board’s decision also 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 statement read. “The Burton Mine Complex (Burton) 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. “The administration process is expected to provide a window which will allow for a sale or recapitalisation to be completed.” The company warned in June it was under extreme pressure from a depressed coal markets and the Queensland government’s “unsustainable coal royalty regime”. Bowen chair Nick Jorss told The Courier Mail soaring state royalties and low prices are to blame for the crisis being felt by central Queensland. “We’re not the only ones on the edge. Quite a lot of mines in central Queensland are cash negative, meaning a lot of jobs are at risk.” Bowen operate Burton which includes operations near Moranbah, Ellensfield South, Plumtree North, Lenton and Isaac. It also has other assets at the Broadmeadow East Mine and Bluff Mine near Blackwater, as well as other projects and joint ventures in Queensland. A statement from McGrathNicol said they had taken control of Bowen’s operations and would continue to trade while they looked for a new buyer or fresh capital. “This includes the operations at the Burton Mine Complex located in the Bowen Basin of Queensland, which will continue uninterrupted,” the statement read. Shares will be suspended during the administration process