Administrators from BRI Ferrier have been appointed to entities within the New Wilkie Energy Group following falling coal prices.
One of the entities that has entered administration is the company charged with overseeing the Wilkie Creek coal mine near Dalby in the Sturt Basin, Queensland.
The mine is still running, with BRI administrators Andrew Cummins, Jonathon Keenan, Peter Krejci and Stefan Dopking taking over operations.
Over the period of administration, they will determine whether to sell the mine or whether a debt restructuring deal is viable.
“Our initial inquiries indicate that there may be a viable business remaining to save or restructure,” the administrators said in an initial report to creditors, The Australian Financial Review (AFR) reported.
The mine’s financial difficulty followed thermal coal prices falling from $US400 per tonne (t) in 2022 to $US170/t in May 2023.
New Wilkie Energy acquired the mine from Peabody Energy in 2021 after it was shuttered in 2013.
The company restarted the mine in April 2023 with the aim of using former mining areas for a solar energy project.
Wilkie Creek was expected to produce 2.4 million tonnes of coal per year, destined for Asian markets.
The AFR said New Wilkie’s head group entity is not in administration, and examinations of the mine’s contracting and start-up costs are underway.
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