Battle for Caledon
The future of Queensland oldest underground mine heads to court after buy offer rejected
Tuesday 24 October 2017
A court case that starts in the Supreme court tomorrow will decide the future of mining at Cook Colliery near Blackwater.
Administrators of Caledon Resources - PPB advisory - have taken the matter to court after one of Caledon’s secured creditors - the Bank of China - refused to accept an offer from Bounty Mining to buy the mining lease.
The court case will also involve mining giant Glencore who owns the Cook Colliery but had leased out the operation to the now-defunct Caledon Resources.
A spokesperson for PPD advisory told Shift Miner that there were two possible outcomes.
“If the court upholds the Bank of China objection to the sale of the lease we have applied to have the assets disclaimed which means the lease will return to Glencore and no longer be part of the liquidation process for Caledon,” he said.
“If the court rejects the Bank of China, we can move forward with the sale of the mining lease to Bounty Mining.”
Bounty mining has historically operated in the Bowen Basin as a thin seam mining specialist using technology it developed in the US. However, like so many other contractors, they lost key contracts during the downturn and had since turned their attention elsewhere.
“Right now for a contractor it is friggin’ hard,” Bounty Mining Gary Cochrane told Shift Miner in 2013.
“I have been around long enough to know that it will come back; this is the fourth cycle I have been through.
“But the big unknown is when things will come back, and how big it will be when it does.”
Despite more than 30 expressions of interest in Caledon coal, administrators put the company into liquidation in August after Cook Colliery - their main operating asset - was flooded on the 7th March from an unknown source.