The Illawarra Mercury reported the deal between Thin Seam Mining and Great Pacific Bellambi had fallen through with GPC disputing that it renewed the mining lease for a further five years. GPC Bellambi bought the mine site for $26 million after the disintegration of Allied Coal at the start of last year.
Thin Seam Mining will now have to win a court battle against GPC in order to action a rescue plan with new partner, Global Capital Corporation.
“The change of mind has come as quite a surprise to everyone. It is still our intent to mine the coal,” Thin Seam general manager Earl Cook told the Illawarra Mercury newspaper.
Creditors met late last month to discuss the fate of the colliery where they voted 50-1 in favour of accepting 20 in the dollar in two years and allowing the company to come out of voluntary administration. The company appointed an administrator in April for creditors to approve a plan.
The meeting was expected to be adjourned at time of writing, to allow creditors to contemplate the plan put forward by the administrator.
Bellambi West mine workers have also come off second best with 190 originally laid off when Allied Coal collapsed, and last month Thin Seam Mining stood down 70 miners.
