Aurora Metals hadn’t paid superannuation for two years, former workers say
Aurora Metals didn’t pay its workers’ super contributions for two years and owes more than 150 Queensland businesses over $52m.
Base metals miner Aurora Metal failed to pay its worker’s superannuation for up to two years ahead of its collapse, and hundreds of workers are still to receive any of the $6.5m they are owed in back-pay and entitlements more than two months on.
Federal Employment Minister Tony Burke is under growing pressure to use his discretion to authorise early payments to workers left financially stranded by Aurora’s collapse from the government’s Fair Entitlements Guarantee (FEG) scheme, with outspoken Queensland MP Bob Katter this week adding his voice to the campaign, saying families affected by the failure were becoming increasingly desperate.
The FEG scheme is normally only accessible when a company enters liquidation, which has not yet occurred for Aurora as receivers GrantThornton are still trying to sell the company’s mines and processing plants on behalf of secured creditors.
Workers could be forced to wait until at least December if those rules are applied, with a Department of Employment and Workplace Relations spokesman noting the Federal Court had granted an extension of the administration period until November 28 to enable the receivers and managers to sell the assets or recapitalise the company.
“The department is closely monitoring the situation and continues to engage with the voluntary administrator,” he said.
GrantThornton is understood to be hoping to close a deal to sell some or all of the company’s assets over the next month, but Mr Katter told The Australian Mr Burke should immediately use his discretion to authorise FEG payments to former workers who were not kept in their roles at Aurora’s mines by its receivers.
“Every wage earner in the country lives from week to week. And if suddenly you’re caught with no income coming in at all it causes real hardship,” he said.
“Mr Burke has got to act straight away.
“People are in terrible trouble – there’s no reason to delay.”
The first creditors report prepared on Aurora by administrators KordaMentha said the company had run out of food in its workers camps, fuel for its vehicles and power by July – and had operated its mines without insurance from May after failing to pay its bills. Some workers went unpaid for the last two months of the company’s operations, and a former employee told The Australian some underground workers had been forced to provide their own hard hats and other safety gear at the company’s mines as money ran out.
Mr Katter’s comments come as new documents filed with the Australian Securities & Investments Commission by GrantThornton show the extent of Aurora’s debts by the time of its failure.
The company owed $1.6m in unpaid wages to its 200 employees, plus another $3m in leave and redundancy entitlements, and $1.8m in unpaid superannuation contributions.
Access to FEG payments will ease some of the immediate financial pressure on Aurora’s former workers, but more than 150 unsecured trade creditors – collectively owed $52.2m – will have to take what they can from any funds remaining from the sale of the company’s assets, after the $242m owed to secured creditors is paid.
Aurora’s former leadership team also presided over a previous bust of the company – then known as Consolidated Tin Mines – in 2016, before returning to business after a recapitalisation in 2017.