Bowen Coking Coal collapses into administration
Australian miner Bowen Coking Coal has entered voluntary administration after failing to secure emergency funding or reach revised terms with key creditors.
The ASX-listed metallurgical coal producer announced on Wednesday the appointment of Mark Holland and Shaun Fraser of McGrathNicol Restructuring as voluntary administrators for the parent company and five subsidiaries, including its flagship operations at the Burton mine complex.
The decision follows the rejection on July 29 of Bowen’s final attempt to defer royalty payments to the Queensland Revenue Office (QRO), a move the company described as “very disappointing". Bowen had also failed to negotiate new commercial arrangements with its largest mining contractor, BUMA Australia, and its senior secured lender.
“The decision to appoint administrators reflects the current challenging environment for the coal industry in Queensland from higher costs, lower global coal prices and higher royalty rates introduced by the Queensland government in 2022,” the company said.
The administration process, according to Bowen, is intended to create a window for a potential sale or recapitalisation of the group’s assets.
Queensland’s coal sector has come under sustained pressure since the state government introduced progressive royalty rates in 2022, linking payments more closely to coal prices. The move drew criticism from industry participants and has contributed to a wave of cost-cutting and asset sales.
While the administrators assess options, operations at the Burton Complex are expected to continue in the short term, though uncertainty looms for employees, contractors, and local communities.
The company acknowledged the support of shareholders, local stakeholders and staff, thanking them for their “dedication and professionalism under challenging circumstances".
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