The state government has again topped up its multi-million-dollar lifeline to fund the insolvent Griffin Coal Mining Company.
The state government has again topped up its multi-million-dollar lifeline to fund the insolvent Griffin Coal Mining Company.
In Parliament, Premier Roger Cook today announced an additional $4.1 million funding on top of the $23.2 million the state government has already committed towards Griffin Coal, bringing the total funding so far to $27.3 million.
Griffin Coal owns the Ewington coal mine in Collie, supplying material to its biggest customer, Bluewaters power station.
Cor Cordis partners Tom Birch and Jeremy Nipps were appointed as liquidators of Griffin Coal in September 2022, joining receivers Deloitte.
Mr Cook said the state government has executed a further funding assistance agreement with the receivers and managers of Griffin Coal.
"Under this agreement, goverment has discretion as to how much support to offer for the period of the state agreement extension to June 2024," he said in parliament.
"Since my last update, I can confirm the government has provided $4.1 million to stabilise Griffin Coal operations under the progress agreement, in addition to the $23.2 million provided for the period January to June 2023."
The state government initially announced a $19.5 million commitment for Griffin Coal earlier this year.
Shadow energy minister Steve Thomas has slammed the upgrade, saying the state government was propping up Griffin Coal by paying the difference between income and costs.
“The $23.2 million handed over up to the 30th of June to a foreign owned company under receivership and administration has had to be increased, with another $4.1 million of taxpayers money being handed over by Roger Cook,” he said.
“And as I have previously said, this will potentially have to repeated for years to come until a final resolution occurs.
“That final solution probably means the winding up of Griffin Coal, which has no capacity to pay back the taxpayer handouts it is receiving or the $1.4 billion it owes to the bank.
“It is subsidising the operating losses of a company with both administrators and receivers appointed, and that the Government itself has recognised may have been trading while insolvent since last year, perhaps longer according to court disputes recently.
Griffin Coal is owned by Lanco Infratech, based in India.
