Hundreds of jobs lost as CQ mine goes into administration

Seven days before Christmas, as many as 200 workers at a central Queensland coal mine have been told they won’t have jobs to return in the new year.

Workers have been left in the lurch.

SEVEN days before Christmas, about 200 workers have been left without jobs after Bounty Mining's Cook Colliery coking coal operation near Blackwater collapsed into voluntary administration.

News Queensland understands workers and contractors, including many from Rockhampton, Yeppoon and Emerald, were informed at an on-site meeting yesterday.

The mining company's downfall was also confirmed with an announcement on the ASX yesterday.

KordaMentha partner Jarrod Villani said Bounty Mining Ltd and its subsidiaries (Bounty), had appointed himself and Robert Hutson as administrations of the company.

"The appointment follows a period of depressed coking coal prices, production shortfalls in the wake of the previously announced roof-falls, and the inability of the board to source the additional funds required to support the company in its transition to place change mining," Mr Villani said.

In a separate announcement, Bounty's primary lender, QCoal Bounty Holdings Pty Ltd, appointed Ben Campbell and Chris Hill of PwC as receivers and managers of Bounty and its subsidiaries.

"Receivers and managers are now in control of the Group's assets, undertakings and operations, including responsibility for the day to day operations of the Group's business," Mr Campbell and Hill said in a joint statement.

"We intend to transition the Cook Colliery's operations into care and maintenance while we undertake an urgent assessment of the business and explore all options to sell and/or restructure the business for the future."

More to come.

Originally published as Hundreds of jobs lost as CQ mine goes into administration