Melior Resources has announced the appointment of a voluntary administrator for its Goondicum mine operations at Monto in Central Queensland.
It is understood about 50 employees are affected by the move.
“In the opinion of the directors of the subsidiaries, the subsidiaries are insolvent or are likely to become insolvent at some future time,” the Canadian company said in a statement announcing the administration of its Australian subsidiaries.
“The subsidiaries have been unable to obtain additional funding necessary to satisfy the ongoing cash needs of the business resulting from the continuing production underperformance at the Goondicum mine.”
It expressed hope that the administration would allow breathing space for Melior to pursue a technical review and work-out plan or sales strategy to maximize any recovery from the subsidiaries.
North Burnett Regional Council is still waiting for more information on the outcome for what is a significant employer in the Monto area, according to Mayor Rachel Chambers.
“Any loss of industry is always a loss to our community,” she said.
Melior restarted the Goondicum ilmenite and apatite operation in November last year and had produced 45,120 tonnes of ilmenite and 4444 tonnes of apatite by the end of June.
In a statement to the market in July, Melior Resources said the project was yet to consistently produce the targeted top quality Goondicum AA specification ilmenite and that it was making changes to the processing circuit.
Bryan Hughes and Daniel Bredenkamp from Pitcher Partners are the administrators for Goondicum Resources.
The first meeting of the creditors of the company is due to be held in Brisbane on September 17.