Cockatoo Coal has taken another tumble, with the Baralaba mine now going into care and maintenance to preserve cash and assets.
Workers have already been notified and given redundancy packages on Monday morning.
The administrators of Cockatoo Coal, PPB Advisory, were brought in to assess the company in November last year, when it was understood that Cockatoo would lose their ANZ bank guarantee in January.
The company share price has seen consistent decline since 2011, when it was going for around 50 cents, however the current listing is for 0.001c.
Cockatoo faced objection to the environmental authority for the Baralaba Expansion Project, which was due to increase production from 1Mtpa to 3.5Mtpa, however on 23 November the Queensland Land Court had recommended that an EA amendment application be approved,
In the September quarter Stage 2 Works on the Baralaba Expansion project reached 99 per cent completion of civil works, and 95 per cent completion of the new train load out facility.
In a statement to the ASX, the company said: “The administrators have determined to take this action due to an unsustainable level of cash outflows, which have been compounded by poor weather impacting production levels and the current low coal prices.”
“The Administrators have received a number of indicative proposals to restructure the group.
“Any proposal capable of resulting in a transaction will be the subject of a formal report to creditors.”
The Baralaba Mine is owned by a joint venture of Baralaba Coal, Cockatiel Coal and Wonbindi Coal.