Contractor in administration
Downturn and low prices claims another contacting scalp
Wednesday 07 June 2017
Queensland and NSW mining contractor Delta SBD has called in the administrators, meaning more than 300 miners - mostly in NSW - will be out of work.
As recently as last September the company said it had: “identified growth opportunities” in Central Queensland and was expecting ongoing work at Peabody’s North Goonyella mine over the next two years.
In July last year, Delta SBD convinced Wollongong Coal to reopen the mothballed Wongawilli coal mine and use them as contractors under a new super low-cost structure.
Delta’s Chief Executive Officer Mr Neville McAlary said at the time they were confident they could reach the required production targets to keep the mine viable.
“The platform is now set for the project team and experienced workforce to seize a real opportunity,” he said.
“Delta is confident that the required production levels can be achieved at Wongawilli.
“It is a real benefit that Delta has recently overhauled relevant equipment for the project, and this will supply the experienced workforce with both safety and production fundamentals.”
However this week Delta SBD called in the administrators, with some rumours slow payment terms may have played a role in the demise of the business.
In a statement, Wollongong Coal said it was hopeful of employing the contractors themselves and restarting the mine.
“The company is in discussions with the administrators about putting in place arrangements to reinstate the contractor’s workforce necessary to recommence the provision of the mining services at the Wongawilli Colliery," they said.
Delta SBD Limited was formed in October 2007 from the merger of two underground coal mining services companies, Delta Mining Pty Ltd and SBD Services Pty Ltd. Both businesses forming Delta SBD had a history dating back to the late 1990’s.
Steve Bisacca, the founding partner in SBD and current Managing Director, spent much of his early career in the Bowen Basin.He was responsible for the purchase and commissioning of Queensland’s first modern longwall at Central Colliery in 1985, and subsequently was the project director for the design and development of the Southern Colliery Project in 1988.