The board of Bounty Mining has placed the company into voluntary administration, effective December 17.
As part of this move, Bounty intends to transition the Cook Colliery coking coal mine to care and maintenance, while it completes an urgent assessment of the business.
Bounty has stated it is “exploring all options”, including selling and/or restructuring the business for the future.
The voluntary administration appointment follows a period of depressed coking coal prices and production shortfalls following a roof fall at Cook Colliery in mid-October.
Although no workers were hurt during the roof fall, the CM13 continuous miner was buried, causing a 23,000-tonne run-of-mine (ROM) loss of production for the month of October.
Bounty estimated additional indirect losses because of the roof fall at 150,000 tonnes ROM and approximately 135,000 tonnes of reserves.
To offset these losses, Bounty halted operations of one mining panel due to the reserve losses and consequently 21 workers were laid off in November.
Bounty purchased Cook Colliery, which is about 30 kilometres south of Blackwater in Queensland’s Bowen Basin, in December 2017 from former owner Caledon Coal.
Since purchasing Cook Colliery, Bounty upgraded the Koorilgah rail loop that services the mine and restarted operations following flood damage to the site in May 2017.
The company had aimed to ramp up production to a 2.2 million tonnes ROM per year rate, but hit another snag following the roof falls.
Bounty has appointed Robert Hutson and Jarrod Villani from Melbourne-based advisory and investment firm KordaMentha as the administrators of the company.
It is forwarding any further questions regarding the company’s continued trading to these administrators.