BUMA Australia is keeping the heat on Burton mine complex owner Bowen Coking Coal, issuing a creditor’s statutory demand for more than $6.8 million.
Under the Corporations Act, failure to pay the amount demanded within 21 days would constitute a deemed insolvency event, Bowen Coking Coal said.
This would entitle BUMA to file an application to wind up Bowen Coking Coal unless the company files an application to set aside the statutory demand within that period.
Bowen Coking Coal said such a deemed insolvency event would result in a breach of its debt facility agreements.
‘BCB is considering its position, but remains committed to seeking a commercial resolution ofBUMA’s claims and, to this end, is actively engaging with BUMA, although no agreement has been reached yet,’ it said in an update to the ASX this morning.
Bowen Coking Coal remains suspended from trading on the ASX after being hit with a demand from its former mining contractor on Monday for almost $15.3 million.
It said today the amount of the statutory demand ($6,818,017.28) since issued took into account liquidated damages claimed by the company against BUMA, which are the subject of ongoing dispute.
BUMA Australia provided mining services at the Burton complex from mid-2022 until its contract ended last month.
Bowen Coking Coal has already scaled down production at its Burton coal complex near Moranbah and has previously flagged ‘pausing’ mining there in the face of financial woes.
The company’s Burton mine complex near Moranbah encompasses the Ellensfield South and Plumtree North mines, a coal handling and preparation plant (CHPP) and train loadout facility. The co-located Lenton and Issac pits are undeveloped open-cut projects.
Bowen’s other assets include the Broadmeadow East mine near Moranbah and the Bluff Mine near Blackwater, which are both under care and maintenance.
The company also holds the Isaac River, Hillalong, Cooroorah, Carborough, and Comet Ridge coking coal development projects and is a joint venture partner in Lilyvale and Mackenzie with Stanmore Resources.