The Cook colliery is Caledon’s sole operating asset and source of income. About 85% of Cook’s coal production that was sourced from the longwall mining area had been inundated.
Soon after the inundation, the company said the loss of revenue from its primary production source would have a major financial impact on it and as a result, it had been necessary to implement several measures to reduce expenditure, including standing down 70 of the mine’s 250 strong full-time workforce for an expected two-month period.
However, even these measures were not enough to keep the company afloat.
PPB Advisory’s Grant Sparks, Stephen Longley and Martin Ford have been appointed administrators of Caledon Coal and four related companies CC Pty Ltd, Blackwater Coal Pty Ltd, Bowen Basin Pastoral Company Pty Ltd and Guangdong Rising (Australia) Pty Ltd.
Caledon is a coking coal and thermal coal producer with assets near Blackwater in the Bowen Basin of Queensland. It operates the Cook colliery and has been evaluating the development of the Minyango project.
“PPB Advisory is currently undertaking an urgent review of Caledon and will work with stakeholders to assess the current position of the company and opportunities to restructure the business for the future,” PPB said.
“It is the intention of the administrators to place Caledon’s operations into care and maintenance during the administration period.
“The administrators will investigate the affairs of Caledon and will report their findings to creditors.”
Last month Caledon announced that the longwall face area of the Cook colliery had been dewatered and safe access restored through both the maingate and tailgate roadways.
Pumping of residual water from the longwall area continued, the company said in a statement.