A coal mine's financial crisis has left workers in limbo and creditors demanding millions. But who's to blame?
The Tahmoor coal mine in New South Wales, Australia, has become a battleground for financial survival. In a shocking revelation, administrators were called in after it was discovered that the mine's holding company owed a staggering $30 million in unpaid royalties, just a fraction of its total debts exceeding $100 million. This crisis has left approximately 500 workers in the lurch, with half of them recently informed they would no longer receive pay.
The mine's closure in February 2025 was a result of its owner, Sanjeev Gupta's GFG Alliance, facing financial turmoil. Despite GFG Alliance's claims of injecting millions weekly to keep the mine afloat, the situation has only worsened.
Here's the twist: documents unveiled a complex web of financing deals within GFG Alliance. Profits from the successful Tahmoor Colliery were funneled to struggling parts of the business, such as the Whyalla steelworks. In 2024, Tahmoor loaned $354.8 million to the steelworks operator, OSM, which was later transferred as a dividend to its parent company, LPMA, causing a significant drop in the mine's value.
But here's where it gets controversial. Despite GFG Alliance's efforts, KPMG, Tahmoor's auditor, doubts the viability of the company's refinancing plans. KPMG's audit disclaimer casts a shadow over the company's financial assumptions, leaving the future of the mine and its workers uncertain.
The situation has sparked legal action, with creditors and the NSW government demanding unpaid royalties and invoices totaling over $17 million. The Mining and Energy Union and the NSW Minerals Council are also involved, as their jointly owned insurer, CMI, is owed $4.7 million.
As the controversy unfolds, the question remains: can Tahmoor rise from the ashes, or will it succumb to its financial woes? The fate of the mine and its workers hangs in the balance, leaving the public to wonder who will ultimately bear the burden of this economic downfall.
