More than half the workforce at Tahmoor Colliery has been stood down without pay after contractor RStar informed workers it could no longer continue payments while the mine remains closed. The mine's owner, SIMEC Mining, a subsidiary of billionaire Sanjeev Gupta's GFG Alliance, is being urged to either restart operations or sell the asset.
The approximately 250 RStar contractors, who make up half the mine's workforce, were told on Friday they would not be paid. The mine has been paused since earlier this year after SIMEC failed to pay its suppliers. Financial difficulties have persisted for nine months, leaving contractors and employees in limbo.
Mining and Energy Union South Western District President Bob Timbs said SIMEC must pay RStar so workers can be paid, and either restart the mine or sell it. Independent Wollondilly MP Judy Hannan echoed concerns, stating workers have been let down by a lack of transparency. She noted that while some workers have found part-time roles elsewhere, many still await clarity on their employment.
GFG Alliance said in a statement it is working to finalise conditions for funding to restart the mine, and had started making payments to creditors after receiving $25 million in bridging finance. However, a delay in the next drawdown of funds caused a scheduled payment to a labour and equipment partner to be delayed.
The union has called for urgent meetings with SIMEC and the NSW government, suggesting government intervention may be needed to protect jobs and the community. Tahmoor Colliery supplies metallurgical coal to GFG Alliance's Whyalla Steelworks.
