Union Calls for Swift Sale of Tahmoor Mine to Local Consortium
The Mining and Energy Union (MEU) has issued a strong plea to the owners of the Tahmoor coal mine, urging them to promptly accept a substantial $350 million offer from Illawarra-based contractor RStar Mining. This local bid, described as serious and credible by union officials, aims to resolve the ongoing uncertainty surrounding the colliery's future.
Pressure Mounts on Mine Owner to Finalise Deal
MEU district president Bob Timbs has publicly called for an end to the protracted drama, emphasising that further delays could jeopardise the mine's viability. "The drama must end now," Mr Timbs stated. "If this mine is not sold to a serious and reputable operator soon, it will become harder and harder to restart it safely."
He highlighted that each month the Tahmoor Colliery remains inactive increases the risk of losing its experienced workforce and allows mine conditions to deteriorate. The mine's workforce of approximately 500 employees has been stood down for twelve months due to financial constraints preventing the necessary movement of a longwall mining machine.
Local Consortium Aims to Secure Mine's Future
Wollongong-based RStar Mining, which currently supplies around half of the labour to the Tahmoor colliery, has formed a consortium with mine staff and other investors to purchase the operation. This bid comes as the mine's owner, Liberty Primary Metals Australia (LPMA) – a company owned by Sanjeev Gupta's GFG Alliance – remains in administration.
Tahmoor represents the primary asset available to realise value for creditors. Mr Timbs argued that accepting the RStar offer would clear the mine's considerable debts and provide Mr Gupta with a tidy sum, allowing him to move on from the venture.
Administration Process Creates Tension
However, representatives for Mr Gupta's GFG Alliance maintain that any potential sale must proceed through the formal Expression of Interest (EOI) process being managed by administrators William Buck. A spokeswoman for the alliance stressed that this is the only avenue through which proposals will be considered.
"Its purpose is to deliver an outcome that pays all secured and unsecured creditors in full and enables the financial restart of the colliery," the spokeswoman explained. She emphasised that any party wishing to acquire or invest in Tahmoor must engage through this formal process and provide clear, credible evidence of committed funding.
The spokeswoman warned that speculative, conditional, or unfunded expressions of interest would not be entertained, describing such approaches as unproductive and distracting. She further cautioned that liquidating the company without properly funded purchasers would be devastating, resulting in immediate shutdown and total job losses.
Union Expresses Concerns Over Motives
Mr Timbs voiced suspicions about the administration process, questioning whether it serves as a "market testing" exercise rather than a genuine effort to sell the mine. "We are very concerned that Mr Gupta is playing for time to try and hold on to Tahmoor, which he has already milked for profits to fund his failed ventures elsewhere," he said.
The union leader warned that continued delays could put the mine out of action permanently and urged creditors to demand liquidation if serious offers like RStar's are not accepted. "Sanjeev Gupta does not deserve more time from creditors to meet his debts," Mr Timbs asserted.
Contractor's Position Adds Complexity
RStar Mining, which employs approximately 250 Tahmoor mine workers, announced last October that it could no longer afford to keep paying them. The consortium has not responded to recent requests for comment regarding their bid for the mine.
Meanwhile, GFG Alliance has indicated for several months that it is working with financiers to try and restart the mine, with the spokeswoman reiterating that preventing job losses and restarting operations remains their sole priority.
The situation continues to unfold as stakeholders await developments in the administration process and potential resolution of the mine's future ownership and operational status.
