IGO: 'No pathway' for Kwinana even as lithium rebounds

On Tuesday, billionaire Sanjeev Gupta placed his Tahmoor coal mine into voluntary administration after a year of uncertainty.Mr Gupta’s latest grapple to retain control came just hours after creditors, led by Coal Mines Insurance (CMI), appeared in the Supreme Court in Sydney to push Tahmoor into liquidation over unpaid insurance claims.The hearing was adjourned until February 18, but Mr Gupta took things into his own hands when Tahmoor Coal’s board, which includes Mr Gupta, placed the company into voluntary administration.This last-ditch effort prevents creditors from forcing liquidation over the unpaid debts and allows Mr Gupta more time to find an alternate pathway for Tahmoor.During the hearing, workers’ compensation provider CMI sought $4.7m in unpaid insurance premiums. Financial statements for FY24 were also bought forth, reporting unpaid creditor claims that exceeded $18.9m.Mining and Energy Union south-west district president Bob Timbs says Mr Gupta’s record is one of disaster and broken promises for regional communities.“If this mine is not sold to a serious and reputable operator soon, it will become harder and harder to restart it safely,” he said.Last week, Tahmoor parent company GFG Alliance rejected a $350m purchase offer from a consortium led by the site’s main contractor RStar — the employer of 250 of the 500 Tahmoor workers who are currently stood down without pay while the mine is idle — according to the Mining and Energy Union.“We are very concerned that Mr Gupta is playing for time to try and hold on to Tahmoor, which he has already milked for profits to fund his failed ventures elsewhere,” Mr Timbs said.“This could put the mine out of action permanently.”The Tahmoor coal mine is the latest victim in an extensive trail of resource businesses led by Mr Gupta that have fallen into administration across Australia.In February last year, the South Australian Government forced Whyalla Steelworks’ operator OneSteel Manufacturing into administration to avoid it becoming ‘irredeemable’ under Mr Gupta who was the previous owner.Legislation was pushed through state parliament to allow the South Australia Government to act on the significant outstanding debts, including unpaid royalties of $18.5m and a $15m bill to SA Water, owed by Whyalla Steelworks' owner GFG Alliance — which is headed by Mr Gupta.In November, Mr Gupta appointed William Buck as the voluntary administrator for his company Liberty Primary Metals Australia (LPMA). The decision came prior to a Federal Court hearing scheduled to discuss its liquidation for unpaid debts to NRW Holdings (ASX: NWH) subsidiary Golding.LPMA held majority of shares in Tahmoor coal mine and was also a previous owner of the Tahmoor colliery, Whyalla steelworks and Liberty Bell Bay manganese smelter.Mr Gupta has been under scrutiny since 2021, following the collapse of GFG’s largest creditor, Greensill Capital. Administrators for the company were unable to verify financing and sales invoices, totalling about $400m, related to loans to GFG as companies listed on the invoices denied ever working with Mr Gupta or his companies.In 2021, the UK Serious Fraud Office launched a criminal investigation to investigate suspected fraud, fraudulent trading and money laundering in relation to the financing and conduct of the business of companies within the GFG Alliance, including suspected fraud links to the collapse of Greensill Capital.In 2024, Greensill Capital’s appointed administrator released a report claiming the company was owed about $1b (£472m) form GFG Alliance.The SFO investigation is ongoing.

The Queensland Government has launched a 10% subsidy on below-rail access charges for the next four years for users of the Mount Isa line in an effort to support industry and strengthen freight corridors.The Mount Isa line is a strategic freight corridor connecting the north-west minerals province (NWMP) to the Port of Townsville, playing a critical role in keeping exports moving.According to the Queensland Government, lowering rail transport costs will enable significant cost savings for operators within the region. For example, a rail user moving .5mtpa of minerals concentrates in a bulk operation between Cloncurry and Townsville would save about $1.4m annually and $5.6m over the four years, says the Queensland Government.Queensland Transport and Main Roads Minister Brent Mickelberg says the four-year subsidy is about backing the industries that keep the state moving by delivering practical support they can rely on.“By lowering rail transport costs, we’re making rail a more competitive option for industry, improving freight corridors and supporting growth across the NWMP,” he said.“We know transport costs can be a real pressure on industry in the north and this subsidy will encourage a shift from road to rail, improving safety on our roads and strengthening long-term freight resilience.”Minerals concentrate, fertiliser, acid, mining inputs, refined metals and cattle are all moved along the Mount Isa line.Queensland Natural Resources and Mines Minister Dale Last says the Queensland Government is serious about unlocking the full potential of Queensland’s north-west.“Queensland’s resources are world-class, and demand is strong, with the elevating phosphate to  list of critical minerals late last year,” he said.“But to meet that demand, we need to get our resources to the coast, and that’s where the Government’s Mount Isa rail subsidy kicks in.“The Mount Isa line is the backbone of the north-west economy, moving mineral concentrates, processed metals, fertilisers, phosphate rock and acid to export markets.”

Westgold restarts Cue gold mine Westgold Resources (ASX: WGX) has successfully fired the first high-grade stope at its Great Fingall mine — now accessing virgin areas last mined more than a century ago.Gold grades from initial stopes are in line with expectations, averaging between 3-4 g/t.Located near the town of Cue in WA, the Great Fingall mine produced 1.2moz of gold between 1891 and 1918 — from just 1.9mt of ore, notably without the benefit of modern mining technology.Westgold managing director and chief executive Wayne Bramwell comments on the restart.“The recommencement of stoping at Great Fingall is a proud achievement for all at Westgold and the WA underground mining community,” he said.“This historic mine, which produced over 1.2moz of gold at outstanding grades in the early 1900s, has now been revitalised as a modern, high-grade operation through our strategic investment in the Murchison portfolio.“The high-grade output from Great Fingall will complement the volume from Big Bell, strengthening our operations and creating lasting value for our shareholders.”At steady state production from 2027, Great Fingall will deliver about .5mtpa of high-grade ore to Westgold’s Cue processing hub, supplementing ore feed from its nearby +1mtpa Big Bell mine.The Great Fingall mine is forecast to ramp up steadily through FY26 toward a combined steady state production rate of about 40,000t per month by late FY27.Westgold continues to drill the lower open extents of the multiple lodes at Great Fingall from underground, targeting extensions to the current six-year mine life.

Viva Energy’s (ASX: VEA) Geelong refinery will operate at reduced capacity in the short term following a fire last week, with diesel, jet fuel and petrol production all impacted. Diesel and jet fuel output will run at around 80% capacity, while petrol output will run at around 60%.The company says it has sufficient fuel stocks to cover the reduced production and expects to maintain normal fuel supply. “The Geelong refinery does not typically source Middle Eastern crude, with current crude sourced predominantly from North and South America, Southeast Asia, and Australia,” the company said. “These crude supply flows have not been impacted, and the Geelong refinery has firm crude supply through to July with high confidence that this supply can continue.” Viva Energy’s fuel sourcing has continued without interruption, supported by import cargo commitments through to the end of May. The company has also entered into an agreement with the Federal Government to purchase additional cargoes beyond its normal requirements. Viva Energy says the fire occurred in the alkylation unit which forms part of the gasoline complex. The other major processing units at the refinery, including the crude distillation units, reformer and residue catalytic cracking unit (RCCU) are unaffected, but the RCCU is offline while operations are stabilised. The company expects to be in a position to restart the RCCU and lift production of diesel, jet fuel and petrol to more than 90% of capacity in the next few weeks.