The Miners’ Union is calling on Sanjeev Gupta to take a serious offer for Tahmoor Colliery that would allow the mine to restart soon, with its existing workforce.
Alternatively, creditors must insist that the mine is put into liquidation, to force a quick sale, said Mining and Energy Union South West District President Bob Timbs.
The Australian newspaper reported today that scandal-plagued Gupta has rejected a $350 million bid from mining contractor RStar to buy the mine. RStar is a major contractor to Tahmoor mine and the employer of 250 workers who are currently stood down without pay while the mine is idle.
Mr Timbs said it was intolerable for Tahmoor to be heading into a new year without producing coal, while Gupta delays the inevitable.
“If this mine is not sold to a serious and reputable operator soon, it will become harder and harder to restart it safely,” said Mr Timbs.
“Every month Tahmoor Colliery is out of action risks losing the experienced workforce and mine conditions deteriorating.
“Mr Gupta should accept the serious offer from RStar, which would clear the mine’s considerable debts and send him on his way with a tidy sum.”
Mr Timbs said the voluntary administration process in place for Tahmoor’s parent company – Gupta’s Liberty Primary Metals Australia – looked more like a lengthy ‘market testing’ approach rather than a serious sale effort.
“We are very concerned that Mr Gupta is playing for time to try and hold on to Tahmoor, which he has already milked for profits to fund his failed ventures elsewhere.
“This could put the mine out of action permanently. He must take RStar’s offer or be forced to sell. Sanjeev Gupta does not deserve more time from creditors to meet his debts and we are urging Tahmoor creditors to demand liquidation if he does not come to the table on serious offers.
“Mr Gupta’s record is one of disaster and broken promises for regional communities. The drama must end now.”
Contact details:
Ned Bukarica - 0439 060 556