Gupta's Tahmoor mine to be liquidated

Tahmoor Coal Pty Ltd, the owner of the idled Tahmoor underground coal mine south west of Sydney, has been placed into liquidation after the Supreme Court of New South Wales granted a winding up application brought by Coal Mines Insurance over unpaid premiums, bringing an abrupt end to a short lived voluntary administration that had been intended to facilitate a sale of the mine.

Justice Ashley Black ordered the company wound up following a contested hearing in which Coal Mines Insurance sought immediate liquidation for roughly $4.5 million in unpaid insurance premiums. The Court appointed Shaun Fraser and Jonathan Henry of McGrathNicol as liquidators, concluding that liquidation was the appropriate course despite arguments that the voluntary administration should be allowed to continue while administrators pursued funding and a potential sale.

The decision follows Tahmoor Coal’s entry into voluntary administration on 9 February 2026, when its board, which includes steel magnate Sanjeev Gupta, appointed Joseph Hayes and Christopher Johnson of Wexted Advisors as administrators. That appointment occurred shortly before the winding up application was due to be heard and was framed as a measure designed to stabilise the company while administrators assessed restructuring and sale options.

Coal Mines Insurance opposed any adjournment that would allow the administration to proceed, arguing that liquidation would provide greater transparency and stronger investigative powers in light of the company’s complex financial position. Submissions to the Court pointed to substantial related party indebtedness (up to $250 million) within Gupta’s GFG Alliance group.

Justice Black acknowledged the significant impact the decision would have on workers and the surrounding community but determined that the evidence did not justify delaying the winding up. The mine has been non operational since February 2025 amid financial turmoil affecting Gupta’s Australian operations, leaving hundreds of employees stood down for more than a year.

The liquidation is expected to result in substantial job losses, with only a small number of employees likely to be retained for care and maintenance activities while the liquidators conduct initial assessments. Local officials and industry representatives have urged that any sale process prioritise a new operator capable of restarting the mine and preserving employment in the Wollondilly region.