Collapsed CQ coal mine sale blocked by Chinese owner

JOBS LOST:  Cook Colliery mine workers and  CFMEU officials  protest outside the Chinese Embassy in Canberra.
JOBS LOST: Cook Colliery mine workers and CFMEU officials protest outside the Chinese Embassy in Canberra. Rebecca Nicholson

THE potential saviour of a collapsed Central Queensland mine has been delayed by the mine's Chinese owners.

Glencore-backed Bounty Mining has emerged as the likely buyer of Cook Colliery coal mine in Blackwater.

The mine, formerly owned by Caledon Coal, has been in care and maintenance since March after a flooding event in its longwall, one of the factors which led to its demise.

In May Caledon Coal was placed in the hands of administrators.

With most of Caledon's assets wound up, PPB Advisory launched a sales campaign for the mine, with a buyer considered the best outcome.

The failure of Caledon Coal, which buckled under a debt of about $4 billion, cost the jobs of about 150 Central Queensland blue-collar miners.

If Bounty Mining acquires Cook Colliery, a liquidators' report said former workers could be entitled to 100 per cent of their redundancy entitlements. Previous reports said the workers would receive 52 cents in the dollar, compared to those employed by Caledon receiving the full amount.

However, the sale agreement has had challenges, including the reluctance of former Caledon owner, Guangdong Rising Asset Management, to sell.

The Chinese state-owned entity's refusal to sell led to PPB making an application to the Supreme Court of Queensland.

On October 27 the Supreme Court of Queensland ordered "liquidators have the ability to complete the Bounty ASA (asset sales agreement) free of any security interests held by the secured creditors".

The Cook Colliery sale is expected to settle by November 25.

PPB Advisory said other factors which led to the mine's demise included Caledon Coal's take-or-pay agreement for its part-ownership of Wiggins Island Coal Export Terminal.

Meanwhile liquidators are liaising with "interested parties" for the sale of Caledon Coal's 15 per cent stake in WICET.

Caledon became the third of eight original owners of the Gladstone terminal to collapse, leaving the remaining five in a tough position.

Topics:  caledon coal coal mining cook colliery liquidation

Stay Connected

Update your news preferences and get the latest news delivered to your inbox.

Annette Mason inquest to hear from dozens of witnesses

Annette Mason. She was found dead in November 1989.

Inquest was re-opened 28 years after teen died

Pensioner whose backyard sank into hole robbed

ANOTHER BLOW: Lynn McKay, the Basin Pocket pensioner whose backyard sink hole made headlines around the world in 2016, had her handbag stolen in the Ipswich CBD. She's appealing for the thief to return the bag.

And police give her even more bad news after reporting it

GRAPHIC IMAGE ALERT: Water skier's grizzly river discovery

A Goodna resident has taken a photograph of an animal that was possibly the victim of a shark attack in the Brisbane River.

Bull shark suspected after carcass left with chunk missing

Local Partners