Cockatoo Coal’s Baralaba mine in Central Queensland is being placed on care and maintenance to preserve cash and the asset value while administrators from PPB Advisory continue assessments.
The administrators were appointed in November and have been investigating options including a restructure or the sale of the mine.
In an announcement to the ASX this week Cockatoo Coal said the administrators had decided to halt Baralaba mine operations due to an unsustainable level of cash outflows, which had been compounded by poor weather impacting production levels as well as low coal prices.
The company’s December quarter report, released last month, showed the Baralaba mine achieved record quarterly sales of 463,000 tonnes of coal in late 2015.
And the Queensland Land Court in December ruled in favour of an environmental authority amendment to allow Cockatoo Coal to boost production there from 1Mtpa to 3.5Mtpa.