ASX-listed Australian Pacific Coal (AQC) has effectively relinquished control of its Dartbrook mine in New South Wales following administrator and receiver appointments amid a debt default to creditor Vitol.

Dartbrook Operations, the mine’s operator, entered voluntary administration on July 3, prompting Vitol Asia to appoint receivers and managers to secure the mine’s assets – including all shares in AQC’s joint venture (JV) vehicle, AQC Dartbrook. Similar receiver appointments were made over funds in certain reserve accounts ring‑fenced for the mine’s operations.

On July 4, McGrathNicol’s Shaun Fraser and Jonathan  Henry were appointed voluntary administrators for AQC Dartbrook and its management subsidiary.

AQC said in a statement on Monday that “it is unlikely that the company will receive any distribution after the conclusion of the receivership and concurrent voluntary administration”.

“The company’s current working assumption is that there is no value to its interest in the Dartbrook mine,” stated AQC.

The coal miner has provided a parent company guarantee for all moneys owing by the Dartbrook JV under the secured facility at the time of the execution of the senior secured facility in January last year. While Vitol has not yet made a demand on that guarantee and the directors have formed the view it has no present intention to do so, the contingent liability under that guarantee greatly exceeds the company’s currently available assets. However, the directors stated that the company was solvent having regard to current available cash resources.

The fallout stems from a default on a $174- million loan facility, backed by a January 2024 senior secured financing deal with Singapore-based commodities company Vitol.

Dartbrook, an underground thermal coal operation in the Hunter Valley near Muswellbrook, first came to life in 1995 under Anglo Coal, but was placed into care and maintenance in 2006 following operational hurdles and falling commodity prices.

Australian Pacific Coal acquired the mine in 2015 and, after securing necessary approvals to restart operations in 2019, began reviving the site in late 2023 and early 2024.

By September last year, the Hunter Tunnel conveyor system was dewatered and coal reached the surface for the first time in 18 years. The mine held capacity approvals for six-million tonnes a year thermal coal.

However, the project was heavily reliant on external funding, notably a $90-million debt facility from Vitol and equity injections totalling A$20-million in October 2024 to assist the restart.

An inability to satisfy required production thresholds triggered breach notifications from Vitol in June.