Tahmoor Coal Mine Officially Listed for Sale After Year-Long Stand-Down
Workers at the Tahmoor coal mine in New South Wales have finally received a promising signal about their employment future, as the long-struggling operation has been officially put up for sale. The move comes after almost a year of uncertainty, with the entire workforce of 500 employees having been stood down since February 2025.
Administrators Launch Expression of Interest Process
William Buck, the administrators for mine owner Liberty Primary Metals Australia (LPMA), have commenced an Expression of Interest process to find a buyer for the Tahmoor operation. This development follows persistent calls from workers, unions, and the NSW government urging that the Sanjeev Gupta-owned mine be sold to an entity capable of reopening it.
LPMA chief executive Theuns Victor confirmed that the company is exploring all reasonable options to restart operations as soon as possible. "We want Tahmoor Colliery to be restarted as soon as possible and we are open to all reasonable options which includes a sale of the company," Mr Victor stated.
The sale process involves LPMA's entire shareholding in Tahmoor, though joint venture arrangements are also being considered as potential alternatives. "One option is a sale where the true value of Tahmoor Colliery can be realised," Mr Victor explained. "Other alternatives include joint venture structures or a standalone financing solution."
Workforce Challenges and Financial Struggles
The decision to proceed with a formal sale process may indicate that LPMA is seeking better offers than those previously received. The mine's financial difficulties have been substantial, with the stand-down occurring after the owner's failure to pay debts caused suppliers to halt their dealings.
Approximately half of the workforce has continued to receive payments during the stand-down period, while the other half employed as contractors stopped being paid in October 2025. Their employer, RStar Mining, cited inability to continue payments when owed money by the mine owner. Interestingly, RStar has been leading a local consortium bidding to purchase the mine.
Mr Victor emphasized that LPMA has maintained support for employees throughout the challenging period. "Throughout the lengthy period it has taken to clear the necessary hurdles, we have continued to inject funding to support employees and their families and maintain safety compliance," he said. "I can assure the community we are working hard to remove the remaining obstacles to restarting Tahmoor Colliery, despite a constantly changing environment."
Significant Impact on Workers and Community
The extended stand-down has created substantial hardship for workers, particularly as permanent employees have missed out on production bonuses that traditionally formed a significant portion of their compensation packages. Some workers have been forced to leave Tahmoor entirely to seek employment at other mines across the region.
Tahmoor Coal represents essentially the only asset in LPMA's possession that can generate value for the company's creditors. The situation has become increasingly complex, with winding-up proceedings initiated by multiple parties including the NSW Coal Mines Insurance body over unpaid debts.
The sale process now offers renewed hope for the mine's future operations and the livelihoods of hundreds of workers who have endured nearly a year of employment uncertainty. The outcome will significantly impact not only the workers and their families but also the broader regional economy that depends on mining operations.
