Tahmoor Colliery Acquired, Restart Possible Within Months
Renewed optimism is sweeping through the Tahmoor community as the financially troubled colliery has been sold to a consortium led by Golden Energy and Resources (GEAR) and M Resources. This acquisition, pending government approvals, signals a potential return to operations and the rehiring of hundreds of former workers.
The sale marks a significant turning point for the mine, located southwest of Sydney, which entered liquidation after amassing over $430 million in claims. This debt included a substantial portion linked to the former owner, GFG Alliance. The colliery’s collapse in March resulted in the redundancy of 238 permanent workers, following the earlier loss of over 250 contractor positions.
Union Welcomes Deal, Foresees Job Reinstatement
The Mining and Energy Union (MEU) has hailed the sale as a crucial development, expressing confidence that mining operations could resume within months. Andy Davey, MEU South Western District secretary, emphasized the positive impact on workers who have faced lengthy commutes and time away from home since the mine’s closure.
“With the spread of 400 people that’ll be coming back to the area, back to their families, back to their beds every night, it’ll be a massive shot in the arm for the local economy,” Davey stated. He described the sale as “absolutely brilliant news” for employees, creditors, and the wider community, highlighting the colliery’s remaining lease of approximately nine to ten years.
Davey noted significant interest in the mine during the sale process, with around 20 parties expressing intentions. He conveyed the union’s initial concerns about potentially inexperienced overseas ownership but expressed confidence in the new consortium’s experience and financial stability. “They run coal mines, they’re a big business, they’ve got the money behind them,” he added.
New Owners Bring International and Australian Expertise
Golden Energy and Resources (GEAR), a Singapore-based entity, is a major shareholder in Stanmore Resources Ltd and GM3, and holds a 50 percent interest in Australian gold production through Ravenswood Gold. M Resources is an Australian investment and coal marketing company specializing in metallurgical coal, wholly owned by Brisbane-based mining executive Matt Latimore.
This partnership is not new for Latimore and GEAR, who, through their GM3 joint venture, acquired the Appin and Dendrobium coal mines in the Illawarra region earlier this year. The consortium was also among the final bidders for the Whyalla Steelworks.
According to information from the liquidators, the successful bidder plans to re-engage with former employees, prioritizing the rehiring of qualified individuals as part of the restart strategy. Davey confirmed that M Resources and its team had approached the MEU regarding their plans for workers and the terms of employment.
“Under the terms and conditions of the enterprise agreement, obviously, it’s still in place; they’ll have to follow it,” Davey said. “They’ll bring our members back and move forward and start getting some coal out of there.” It is also understood that the contract for the mine’s main on-site contractor, R-Star, will be continued.
Financial Recovery Expected for Creditors and Government
Liquidator Shaun Fraser indicated that the sale is anticipated to result in a full recovery for secured creditors, employee entitlements, and the NSW government. Unsecured creditors are expected to receive a partial return on their claims. “The transaction is clearly the best possible outcome for creditors, current and former employees and the local Tahmoor community more broadly,” Fraser stated.
Independent Wollondilly MP Judy Hannan expressed satisfaction with an established mining operator, including Australian involvement, taking over the colliery. “I’m very excited for the people that work there and it appears like it’s a binding agreement and hopefully we’ll get everybody back to work as quickly as possible,” Hannan commented.
Timeline for Restart
Attention now shifts to the timeline for resuming production. While restarting an underground coal mine is a complex undertaking, Davey suggested the process could move relatively swiftly. “We’re probably still looking at 12 to 16 weeks minimum,” he said, adding, “They’re going to have to start employing people very shortly.”
A spokesperson for the NSW government welcomed the development and pledged cooperation to ensure necessary authorisations are in place for a safe and prompt restart. “The NSW government will work with the parties to ensure appropriate authorisations are in place to support mining operations to restart safely and as quickly as possible,” the spokesman stated. “As part of the liquidation process, the government took concrete action to protect the interests of taxpayers.” M Resources and GEAR have been approached for further comment.
