Cockatoo sets timeline for operations
WORK to start straight away on newly awarded mining lease.
Wednesday 29 June 2016
The only work being undertaken by Cockatoo Coal in the next six months will be on the coal deposit at Baralaba North with the goal of releasing an updated resource statement shortly.
However aside from that, a spokesperson for Cockatoo Coal says there will be no mining at any of their operations until at least March next year as the company slowly prepares itself for life under new ownership.
“We have a skeleton staff on here at the moment to keep everything on care and maintenance,” she told Shift Miner.
“However we have only just come out of administration, and we don’t even have a mine plan organised yet, so there will not be anything happening before March next year.”
This week the Queensland Government granted a 25-year mining lease (ML 80201) for Cockatoo's Baralaba North mine which the company says is critical to their longer term goals.
“The mining lease approval extends the life of the Baralaba North mine, and in conjunction with the company’s environmental authority will allow Cockatoo to produce coal at the Baralaba North mine at a rate of up to 4.1 million tonnes per annum (Mtpa) of run-of-mine (ROM) coal (approximately 3.5Mtpa of saleable coal).”
Cockatoo was forced into administration in January this year by collapsing coal prices and costs associated with their Baralaba North expansion plans which they commenced during better times.
However, US-based shareholder - Liberty Metals & Mining Holdings - offered creditors of Cockatoo Coal a life-line rescue package worth around $100 million, in return for their taking over control.
Importantly for around 75 employees of Cockatoo Coal, who were owed money at the time of administration, seventy-eight million of the $100 million debt facility went toward paying them and other small unsecured creditors.
However, large unsecured creditors like the remaining partners in the Wiggins Island Coal Export Terminal (WICET) and Aurizon had to write off millions of dollars of bad debt.