Former NSW premier Morris Iemma to take up top role at a struggling tin mining outfit

WHY former pollie Morris Iemma wants the job is anyone’s guess, given the fact that Consolidated Tin Mines has quite a chequered history and continues to lose heaps of money.

Former New South Wales premier Morris Iemma.

FORMER NSW premier Morris Iemma is poised to take up the chairman’s role at a struggling tin mining outfit active in Queensland as it expands in to other base metals.

But why the former pollie wants the non-executive gig is anyone’s guess, given the fact that Consolidated Tin Mines has quite a chequered history and continues to lose heaps of money.

Iemma, who also chairs Greyhound Racing in NSW, said this week he was “excited’’ to get the job as part of a board restructure that will see more new directors appointed.

“Consolidated is well-positioned to pursue new opportunities, adding to its existing production of zinc, copper, lead and gold,’’ Iemma noted.

He will replace Cairns-based company co-founder Ralph De Lacey and another bloke who served as joint chairs. De Lacey, a former professional fisherman, will stay on as managing director.

Consolidated just wrapped up a $12 million capital raising last month and, gee, do they need the dough.

The latest quarterly accounts show the firm chewed through nearly $24 million of cash in the last financial year.

It also suffered a $16 million net loss in the December half.

At that point it revealed it had just $1.6 million in the bank and a working capital deficiency of an astonishing $89 million. The outlook is so precarious that auditors have repeatedly warned there remains a “material uncertainty’’ about the company’s ability to stay afloat.

TOUGH TIMES

CONSOLIDATED is no stranger to tough times.

The company nearly collapsed in 2016 owing more than $50 million and its shares have been suspended on the ASX for more than two years.

After a decade in operation, Consolidated entered voluntary administration two years ago despite Chinese investors tipping in excess of $100 million. It narrowly dodged liquidation when creditors approved a deed of company arrangement in late 2016.

The deed was terminated early last year following the establishment of a $10 million creditors trust.

Since then, the company has secured a lifeline from Melbourne-based financiers, who have advanced $36.5 million and loaned an additional $23.5 million.

MORE DRAMAS

IN case all this wasn’t challenging enough, Consolidated has battled a raft of environmental headaches.

The Department of Environment and Heritage Protection alleged last year that the firm had illegally released two megalitres of contaminated wastewater from the Baal Gammon copper mine in 2015.

Regulators also charged the company and one of its subsidiaries with two counts of “wilfully contravening’’ their operating license.

De Lacey himself was hit with two charges of failing to ensure Consolidated and the same subsidiary complied with the Environmental Protection Act.

Both he and the firm denied any wrongdoing in the cases, which were dismissed by a court.

But, in a bid to rid themselves of the headache, Consolidated paid $1.8 million to Denis Reinhardt’s Baal Gammon Copper Pty Ltd last year to assume responsibility and liability for the project.

The Queensland Government is now pursuing legal action against Reinhardt’s company to secure an additional $2 million-plus bond to safeguard the area around the mine. He did not return a call seeking comment yesterday.

PINGED BY ASIC

BRISBANE liquidator Peter Dinoris learned this week he’ll be scrutinised by the corporate cop based on a court ruling that he had failed to rigorously pursue a case in 2010.

A Federal Court found that Dinoris didn’t contact a company director by phone after learning he withdrew $236,500 from a bank account just a day prior to appointing administrators.

ASIC will now examine four cases handled by Dinoris to verify that he has overhauled his practice. If not, he could lose his registration.

After a long stint at Vincent’s Chartered Accountants, Dinoris left in late 2016 and set up his own practice, Artemis Insolvency.