The state government will not ensure the entitlements of collapsed miner Griffin Coal's 500 workers, fresh reports reveal.
The state government will not ensure the entitlements of collapsed miner Griffin Coal's 500 workers, fresh reports reveal.
WA Business News understands Premier Colin Barnett has vetoed a commitment given by Energy Minister Peter Collier yesterday that the government would work with the administrator to ensure workers interests were protected.
But a report in The West Australian today has revealed that Mr Barnett said the government would not use taxpayers' money for a rescue package for the privately-run coalmining giant controlled by Monaco-based Ric Stowe.
Yesterday, Mr Collier ruled out the possibility of bailing out the state's largest coal supplier after the company was placed in administration but stated to journalists he would work with administrator KordaMentha to ensure workers interests were protected.
"We will not be bailing out Griffin, I want to make that quite clear, but at the same time we will be preserving all workers entitlements regardless of the outcome or regardless of what the administrators conclude," the minister had said.
Mr Collier said he had two priorities: to look after the workers and make sure the lights stay on.
But The West reported Mr Barnett saying that because Griffin Coal was a private company it was a matter for the administrators and the company and "there is no government money involved".
Griffin, along with Wesfarmers' Premier Coal, supplies coal from their Collie mines to electricity producer Verve.
The Mr Stowe-controlled Griffin Coal Mining group, was placed in administration with debts and tax obligations totalling $700 million.
KordaMentha has been appointed administrator of the group after it missed deadlines for the payment of debt instalments and tax liabilities.
The Griffin companies had $529 million worth of unsecured debt to US bondholders, missed a $25 million payment due on December 31, and missed a deadline for payment of $5 million to the Australian Taxation Office.
The five entities in administration are its mine and mine supply companies - WR Carpenter Holdings, Griffin Energy Group, Carpenter Mine Management Holdings, Carpenter Mine Management, and The Griffin Coal Mining Company. The entities that own Griffin's energy business, including the Bluewaters power stations, are not in administration.
Griffin Coal has coal mines in the Collie region, supplying more than five million tonnes of relatively low-grade black coal annually and employing about 500 people.
KordaMentha partner Brian McMaster said in a statement yesterday it would be "business as usual" while the state of the business was assessed.
KordaMentha began talks yesterday with creditors, employees, unions and other stakeholders, including a meeting with Mr Barnett.
"Clearly the company owns an important piece of infrastructure and is a major contributor to the South West economy," Mr McMaster said in a statement.
"Selling the business as a going concern or a restructuring are options being evaluated.
"It is a very large coal deposit within easy reach of ports and markets."
The Griffin group has business interests in a range of diverse industries including energy, coal, property, agriculture, office products and helicopters.
The Griffin companies have not been without controversy over the years.
Mr Stowe faced a nine-year tax audit of his businesses which involved deductions he claimed for his eight-seater Falcon 50 jet and boat expenses paid by his company, which in 2006 ultimately found that the reclusive mining magnate owed authorities $173 million.
Shortly after settling the epic dispute, the Perth tycoon who resides in the European tax haven of Monaco and is estimated to be worth more than $700 million, began fighting another huge tax bill after disputing a bill for the 2003-04 tax year.
