Coal mine owners walk away and leave rehabilitation to state

In central Queensland, the Bluff coal mine operated by Bowen Coking Coal (BCC) has been abandoned and will now be managed by the state government. The owners of the mine, BCC, went into voluntary administration in July last year and the administrators are McGrathNicol's Mark Holland and Shaun Fraser. The mine, located south of the town of Bluff and 20 kilometers east of Blackwater, is currently under the control of the Queensland Department of Natural Resources and Mines.

The liquidators have disclaimed the mining lease, environmental authority and exploration permits for the mine, thus making the mine an abandoned site. The Queensland government has secured the site and is working with relevant agencies to manage risks to public safety and the environment. Bowen Coking Coal purchased the mine from Carabella Resources in 2021, who had originally been granted the 15-year mining lease over the site by the state government in 2016.

Due to falling coal prices, Carabella Resources went into voluntary administration in November 2020 and the mine was placed into care and maintenance in December 2020 before being restarted in the first quarter of 2022. The mine was planned to produce 5 million tonnes of coal by 2024. However, the mine has now been abandoned. Rehabilitation works at the site will be managed through the Queensland Department's Abandoned Mine Lands Program.

This situation raises concerns, as most abandoned coal mines in Queensland are managed by the government after they reach the end of their life. The mine was still active when it closed, so the rehabilitation plans will need to be redrawn. The rehabilitation cost is estimated at $12,251,470.50, but this may be too low. The site has been left with a large hole in the ground, ponds of water, and ongoing environmental concerns such as dust management.