Cockatoo Coal workers still waiting for entitlements

Former Cockatoo Coal employees from the Baralaba Coal Mine have not been paid their entitlements.

Around 70 workers were sacked from the central Queensland operation in early February, following the company being put into administration in November 2015.

The ABC reported workers were told they would receive their entitlements in the week following their dismissal.

Administrator PPB Advisory has said a new deed of Company Arrangement signed with Liberty Metal and Mining Holdings (LMM) on March 15 will enable the release of funds to pay outstanding employee entitlements in April.

The deal with LMM will ensure the injection of a $6 million cash subscription for 6 billion ordinary shares and a $100 million debt facility.

The Cockatoo Coal share price saw 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 in February, 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.”

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