The troubled Dartbrook underground coal mine near Aberdeen will be placed into care and maintenance, just 12 months after production resumed.
The mine was placed in the hands of administrators and receivers in July owing creditors around $200 million. Soon after, nearly two-thirds of its workforce – about 100 jobs – were cut.
The company was suspended from trading on the ASX on September 30 after it failed to lodge its annual accounts.
In a statement, administrators FTI Consulting said underground operations would be suspended following an operational review, although the coal handling and preparation plant would remain unaffected.
“The Receivers have been provided funding to ensure employee entitlements for any affected employees can be met in full, and a period of consultation with the workforce is underway,” a spokesperson said.
Muswellbrook Mayor Jeff Drayton labelled the decision “the worst possible move,” arguing it would undermine the mine’s future.
“You can’t seriously expect to sell a mine or make the case for an extension when you’ve just halted operations,” he said.
“It’s the latest in a series of failures that have let down workers, the Muswellbrook community and the long-term future of the mine.”
Mayor Drayton also criticised the operators for years of unpaid rates to council, saying the community needed “clarity, accountability and better decisions for local businesses, workers and families.”
Dartbrook has long been one of the most controversial mines in the Upper Hunter.
In 2006, former operator Anglo American mothballed the site after persistent issues with flooding, gas, spontaneous combustion and three workplace deaths.
The mine later recorded NSW’s first case of Black Lung disease since the 1970s.
It was purchased in 2017 by Australian Pacific Coal, despite the company having no mining experience.
After a lengthy court process, it secured approval in 2019 to operate until 2027.
According to the NSW Resource Regulator, Dartbrook currently holds $10.8 million in security bonds, short of the $14 million required. Rehabilitation of the site has been estimated to cost tens of millions, with concerns raised about water discharge into the Hunter River
While administrators insist employees will receive their entitlements, the decision raises fresh questions about the mine’s long-term viability and the economic impact on the Muswellbrook community.
For now, the mine remains in limbo — another twist in a saga stretching back nearly two decades
