Company collapses over failure to pay its share of CQ mine
A BUSINESS with a significant share in a Central Queensland mine has gone bust over an outstanding $24 million.
McGrathNicol Restructuring has been appointed as receivers of ICRA Rolleston Pty Ltd - directed by John Canavan, the brother of Rockhampton-based Senator Matt Canavan, - which holds a 12.5 per cent interest at the Rolleston Coal Mine.
Legal proceedings between Rolleston Coal Holdings Pty Ltd and ICRA Rolleston Pty Ltd have been ongoing since July, over a number of outstanding cash calls after ICRA failed to make payments as the thermal coal price plunged.
Despite challenging the validity of several of the cash calls, the Supreme Court ruled against ICRA in late November, with court documents indicating Glencore was still owed about $24m, The Australian reported.
"The costs of operating the Rolleston Mine are significant and require payments to be made to employees, contractors, suppliers, government (for royalties), rail providers, shipping terminals and other third parties," the court documents stated.
The Rolleston open cut coal mine is managed and operated by Glencore.
Glencore holds 75 per cent interest with each ICRA Rolleston and Sumisho holding 12.5 per cent interest.
The receivers reportedly intend to immediately undertake a sale for the joint venture interest.