Queensland-based miner Bowen Coking Coal said on Tuesday that it had received a A$15.3-million demand notice from former mining contractor BUMA Australia, sending the ASX-listed company's stock down 25% to A$0.075 apiece.

The letter of demand, delivered after market close on July 14, calls for payment of A$15 288 017.28 (including GST) by midday on July 16, according to a company announcement to the ASX.

The development raises doubts over Bowen’s ability to continue ongoing negotiations with BUMA and senior secured lender Taurus, as well as recapitalisation discussions with the Queensland Revenue Office.

“Unless BUMA immediately withdraws the demand or offers an extension of time for payment to allow further negotiation, the company is compelled to consider whether continuing commercial negotiations . . . remain viable,” Bowen said in the statement.

The demand follows Bowen’s decision to terminate contractor-led operations at its Burton Mine Complex, officially transitioning to an owner-operator model on July 1. The company is currently running a scaled-down mining fleet at its Ellensfield South and Plumtree North pits in a bid to conserve cash, amid a steep downturn in coking coal prices and unusually wide discounts for lower-tier metallurgical coal.

On Monday, Bowen had flagged ongoing cash conservation measures, disclosing that it had already cut its operating excavator fleets in half and reduced production targets for the September quarter to about 500 000 t of run-of-mine coal - prioritising only low-cost export tonnage.

“This decision has not been taken lightly,” the company said in its update on Monday, noting that if pricing conditions did not improve or refinancing is unsuccessful, Burton operations could be paused entirely.

Metallurgical coal markets have remained under pressure despite a brief price spike in May. Platts premium low-vol HCC FOB Australia prices have dropped from a peak of $195.80/t in late May to about $177/t in mid-July. Meanwhile, second-tier HCC products — such as those produced at Bowen’s operations — have seen persistent 30% discounts to benchmark prices, eroding margins across the sector.

The situation has been compounded by Chinese steel export surges, ongoing trade friction, and declining seaborne met coal volumes, which were down 14% year-on-year.

As of July 11, Bowen reported A$45-million in cash, though A$19-million of that remains restricted. The company has appointed advisers and is exploring debt, equity, and hybrid financing alternatives to shore up liquidity. Negotiations with creditors, lenders, and tax authorities remain ongoing, but the company has stressed that “there can be no assurance of success".