The future of more than 1,000 employees, contractors and suppliers at three Queensland mining sites has been secured, according to the premier, after a newly formed company purchased a majority shareholding in Bowen Basin mining company Fitzroy Resources.
Fitzroy Resources operates Broadlea, Carborough Downs and Ironbark mines near Moranbah in central Queensland.
Argo Queensland, formed two months ago, has acquired a 70 per cent stake in the company for an undisclosed sum.
Premier David Crisafulli said the deal was struck during negotiations he led at a recent trade mission to India and Japan.
In a letter to employees, the company said the sale marked an end to an “extraordinarily challenging” period for staff, contractors and suppliers.
“Fitzroy has been through a difficult period and we are grateful for the support of our team and stakeholders as we have successfully worked through it,” the letter reads.
“This transaction will deliver a significantly strengthened balance sheet, which puts Fitzroy in a stable position to manage our financial commitment to you and our contractor partners and suppliers.”
In a statement, CEO Dan Clifford said the transaction could take up to four months and was a strong vote of confidence in the long-term potential of the mines.
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