Bowen Coking Coal Limited (ASX:BCB) et al. - Voluntary Administration

Bowen Coking Coal Limited (ASX:BCB) et al., the owners and operators of the Burton Mine Complex in north Queensland’s Bowen Basin, entered voluntary administration on 30 July, with Shaun Fraser and Mark Holland of McGrathNicol appointed voluntary administrators. 

Bowen purchased the Burton complex in 2021 but had contracted out operations to BUMA Australia for the past two years, until the agreement between the parties expired in late June of this year.

In a statement to the market, the company said the decision to appoint administrators was made after it was unable to secure fresh capital or negotiate alternative commercial arrangements with BUMA. Bowen also cited the Queensland Revenue Office’s recent rejection of its request for a short-term deferral of royalties, as well as challenges facing the Queensland coal industry more generally, including higher costs, lower global coal prices and higher royalty rates introduced by the Queensland Government in 2022.

Following the appointment of the voluntary administrators, Ben Campbell, John Park and Joanne Dunn of FTI Consulting were appointed receivers on 31 July pursuant to security held by Global Loan Agency Services. The administrators and receivers are now working together on the companies’ ongoing operations and the sale/recapitalisation process. Approximately 500 jobs are thought to be on the line.