Wongawilli stops operating after Delta goes into administration

WOLLONGONG Coal’s Wongawilli Colliery in New South Wales has ceased operating after its main contractor Delta SBD was placed in voluntary administration last week.
Wongawilli stops operating after Delta goes into administration Wongawilli stops operating after Delta goes into administration Wongawilli stops operating after Delta goes into administration Wongawilli stops operating after Delta goes into administration Wongawilli stops operating after Delta goes into administration

Lou Caruana

John McInerney and Said Jahani of Grant Thornton were appointed joint and several administrators of the contractor on May 31 and Wollongong Coal was advised that the administrators had stood down Delta SBD’s workforce, including those providing the mining services contract.

The mining services contract between Wongawilli Coal and SBD Services dated July 17 2016 stated the contractor was to provide mining services at the Wongawilli colliery including, but not limited to, the mining and extraction of coal, maintenance of coal stockpiles and operation, inspection and testing of certain associated machinery and equipment.

“The company is in discussions with the administrators with a view to putting in place arrangements to reinstate the contractor’s workforce necessary to recommence the provision of the mining services at the Wongawilli colliery, either in whole or part, during the administration period, which is typically approximately five weeks,” Wollongong Coal said in a statement to the Australian Securities Exchange.

“The company wishes to advise that its major shareholder holder, Jindal Steel and Power (Mauritius) Limited remains supportive and their support letter remains valid, effective and in force.”

According to Delta, the administrators are undertaking an urgent assessment of the business to identify steps that may be taken to stabilise the business.

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