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Port Aboutusgeneric_1 Club Persons of the Year were Roydon Brown, Shane Pingel, Merry and Allan Pidgeon fifo csg csg dragline Aboutusgeneric_2 mine Jo-Anne Burke, DB Scaffolding; Susan McGuire, Mayogroup Under 17's Girls Award Winners Greg Byrne, Downing; Ian Reed, QNP (L-R) Bronte and Fallon Under 15's Award Winners Aboutusgenericimage_3
Port Aboutusgeneric_1 Club Persons of the Year were Roydon Brown, Shane Pingel, Merry and Allan Pidgeon fifo csg csg dragline Aboutusgeneric_2 mine Jo-Anne Burke, DB Scaffolding; Susan McGuire, Mayogroup Under 17's Girls Award Winners Greg Byrne, Downing; Ian Reed, QNP (L-R) Bronte and Fallon

Miner into administration
ONGOING low coal prices claim another victim.
Wednesday 18 November 2015  

BOWEN Basin miner, Cockatoo Coal, has called in the administrators in a move which is likely to cost more than 100 jobs in Central Queensland.

Nearby residents in Baralaba are holding onto the slim hope that the administrators PPB Advisory will be able to restructure the company, or sell it as a going concern.

However, given the effort Cockatoo Coal has put into restructuring the business to keep it viable in the current mining downturn, a silver bullet solution to their problems seems unlikely - other than a coal price recovery.

In a short statement, PPB Advisory - who is also handling the Bandanna Energy administration - said no jobs have been lost yet.

“We are currently undertaking a review of Cockatoo and working with all stakeholders to assess the current position of the company and identify opportunities to restructure the business for the future,” they said.

“During this time, Cockatoo will continue to operate on a business-as-usual basis, with all staff continuing in their roles.”

As foreshadowed by Shift Miner in October, the administration follows the decision by the ANZ bank to pull an AU$81 million bank loan.

In a written statement last month, Cockatoo said it was looking at its options.

“Cockatoo has received a notice from ANZ, pursuant to which the LC facility will be terminated on the 15th January 2016,” they said.

“The option remains for the company to put to ANZ an alternative restructuring proposal.

“The company is exploring options for the refinancing of the amounts outstanding under the LC facility and will further update the market with any material developments.”

The announcement caps off a very difficult few years for Cockatoo Coal.

Not only have they faced plummeting coal prices, they have had to push ahead with a boom-time decision to expand coal production from about 700,000 tonnes a year to 3.5 million tonnes a year by building a new mine and load out facility at Baralaba.

In February this year, they were forced to massively dilute the value of shares in the company by issuing $125 million worth of new stock at just $0.02 a share, which was 86 per cent less than they were worth before they went into a trading halt in late 2014.

However, despite all those efforts, both their share and coal prices have continued to deteriorate, forcing the company to recently slash 86 per cent of its head office staff in Brisbane and nearly a quarter of those in Baralaba.


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