Hundreds of workers at a coal mine south-west of Sydney are set to lose their jobs after liquidators confirmed redundancies as part of the process of selling the mine.
Tahmoor Colliery, owned by Sanjeev Gupta’s GFG Alliance, was forced into liquidation last week after the British billionaire failed to stop the move.
The liquidators, McGrathNicol, met management on the site on Monday and the Mining and Energy Union (MEU) yesterday.
The liquidators today announced plans to make up to 238 full-time equivalent positions redundant.
They said consultation with the mine’s 328 workers was expected to conclude this week.
Union leaders said the decision was widely anticipated but had still come as a blow to workers and their families, many of whom have endured more than a year of uncertainty.
Bob Timbs from the MEU said the workforce had been preparing for the possibility of liquidation after months of instability surrounding the mine’s ownership.
“We have steeled ourselves for it, but it’s never easy when this happens, and it’s difficult,” he said.
“There’s real people and families being affected by it.”
The Tahmoor mine has been mothballed for 14 months amid financial turmoil surrounding its ownership group, GFG Alliance.Â
One of the mine’s creditors, Coal Mines Insurance, sought a winding-up order in the Supreme Court.
The mine has been non-operational for 14 months. (ABC Illawarra: Brooke Chandler)
Last week, the order was approved, and the mine was placed into liquidation after administrators were unable to demonstrate that the mine had secure ongoing funding.
“Unfortunately, because of GFG and Gupta’s arrogance in terms of trying to keep hold of the mine, it had to get to where it is to move forward,” Mr Timbs said.
Workers face difficult choice
Bob Timbs from the Mining and Energy Union says workers and their families are facing a tough blow after months of uncertainty. (ABC News: Richard Malone)
Mr Timbs said the union would meet workers in Tahmoor tomorrow to explain a brief window offered by liquidators that could allow some employees to avoid immediate redundancy.
“If they opt not to be made redundant, they can take a period of unpaid leave for six weeks and then review their position after that,” he said.
“[That will] give the union and members some time to take a decent look at the sales process and what type of transition of business will be required with regards to a new owner.
“What we would like to do, for those who want to stay, is a seamless transition to the new owners with a transfer of their accruals and redundancy provisions.”
Mr Timbs said many employees are exhausted after 14 months of uncertainty, with some older workers likely to accept redundancies, while younger employees may take the risk of unpaid leave in the hope of returning to work.
“A lot of them are just tired and worn out from the ups and downs they’ve been through,” he said.
The liquidators said they were working with unions, the local council and the federal government to help workers access support, including the Fair Entitlements Guarantee scheme, which can cover unpaid wages and redundancy payments.
Strong interest
Union representatives and the administrators said there remains a strong interest in the mine from potential buyers.
William Buck, the administrator for Tahmoor Colliery’s parent company, Liberty Primary Metals Australia, said more than 20 parties previously expressed interest in buying the mine.
Director Michael Brereton said the mine attracted “meaningful engagement from a number of credible parties” before liquidation halted the process.
Tahmoor Colliery workers face uncertainty as liquidators offer a brief window to take unpaid leave while the mine’s sale is explored. (ABC Illawarrra: Brooke Chandler)
Industry figures said the asset remains valuable despite the financial collapse that led to its shutdown.
“The underlying mine is still there,” Mr Brereton said, adding that the main damage to its value had come from delays in completing a sale rather than the liquidation itself.
While the parent group continued covering employee entitlements for much of the past year, administrators were unable to convince the court that long-term funding for the operation was secure.
Liquidators are now seeking urgent expressions of interest from potential buyers, with a sale process expected to run for around 12 weeks.
Whole community impact
Mark Bryant, pictured with his youngest child, says the liquidation is hitting the wider community. (ABC Illawarra: Kelly Fuller)
Workers said the impact was already being felt across nearby towns.
Mark Bryant, who works for the majority contractor RStar at the Colliery, said the liquidation was affecting not just employees but the broader community.
“It’s probably having a greater impact in Picton, Tahmoor, Bargo and Thirlmere and all the surrounding suburbs,” he said.
Workers say the situation is having a major impact on Tahmoor and the surrounding towns of Picton, Bargo, Thirlmere and into the Illawarra. (ABC Illawarra: Brooke Chandler)
“Local businesses that support the workers are also supported by all the miners, whether they come from up there or down the coast.”
Mr Bryant said the shutdown was affecting shops, services and contractors who relied on the workforce.
“So, it’s having an impact on the whole community.”