40 jobs go in voluntary liquidation
DOWNTURN too long for yet another CQ mining business
Wednesday 28 September 2016
Liquidators SV Partners Mackay are working through the process of closing down Spartan Mining after the director placed the business into voluntary liquidation.
Spartan Mining started back in 2007, and at its peak employed more than 200 people on contracts at Anglo American’s Grasstree and Moranbah North mines, BMA’s Broadmeadow mine, and projects in NSW.
SV Partners Senior Manager, Mr Frank O'Neill told Shift Miner the closure reflected the ongoing economic conditions.
“General economic conditions in the mining sector made it very difficult for the business to continue,” he said.
“A number of key contracts recently ended and were not renewed, and when we were appointed, there were not enough funds to keep trading.
“Unfortunately 40 of the 43 employees have lost their jobs, with the final three assisting with the winding up process.”
The failure of Spartan Mining is yet another hit to the Mackay economy which has been devastated by the size and length of the mining downturn.
While the 40 former employees are owed wages and entitlements, these are expected to be paid through the Federal Government’s Fair Entitlements Guarantee (FEG), who will then, in turn, seek to recoup that money through a claim made against the business.
However, in the short-term, it will mean less money circulating in the Mackay economy.
FEG claims usually take three months to process and it is unknown at this stage whether there will be a dividend to the company’s unsecured creditors [such as local small business].
Despite rumours the collapse was partly due to the hyper-extended payments terms that the region's big miners have forced onto their contractors through the downturn, Mr O’Neill said “investigations are ongoing, but it’s due to a number of factors and not just one event”.
Spartan Mining Services Pty Ltd was established in November 2007 by Eddie Algie and Milton Ruhito to fill the demand for labour and equipment hire in the Central Queensland underground coal mining industry. In 2012 it became the Spartan Group when Fernside Mining Services & DB Mine Hire came under the same roof.