Mossman sugar mill meeting draws hundreds ahead of creditors vote

Dozens of concerned Mossman residents are planning to front up to state government ministers this week in a bid to prevent one of the town’s largest employers from folding.

Dozens of Mossman locals deeply concerned about their town being on the “knife’s edge” are expected to front up to state ministers in Cairns this week.

It comes after about 200 people attended a snap meeting on Monday night about the imminent closure of the Mossman Sugar Mill.

Creditors are set to vote on Thursday on whether to liquidate Daintree Bio Precinct, the parent company of Far Northern Milling, after it was revealed millions of dollars were owed to workers and unsecured creditors.

The mill has already been propped up by about $60m in state and federal government funding since 2012.

Douglas Chamber of Commerce interim president Peter Capp said everybody at Monday’s meeting wanted the mill, which employs about a third of Mossman’s population, to survive.

About 200 concerned residents attended a snap Douglas Chamber of Commerce meeting in Mossman on Monday night over concerns about the town's sugar mill. Picture: Supplied

“We had a show of hands (on Monday) and the entire audience were in agreement,” he said.

“The impact of 150 direct employees, the 570 indirect jobs that would be lost, the $180m to our local economy … the job losses and economic loss can’t really be quantified if we lose the mill.

“The flow-on effect, coupled with Cyclone Jasper, has really put our town on a knife’s edge.

“There were a lot of businesses in the audience and every one of them is feeling the pinch.

“We don’t have a lot of tourism in Port Douglas at the moment and should this mill go under, what (they’re) feeling now is a fraction of what’s to come.”

The chamber, along with local police, are offering to assist Mossman locals to travel down to a community cabinet session in Cairns on Wednesday.

While some have secured meetings with key state government ministers, others have been encouraged to bring signs and placards as part of a demonstration outside the town hall meeting.

Mr Capp said if another company, the state government or the commonwealth did not step up to offer the mill a financial lifeline, a “rescue package” would be necessary to save the town.

“We don’t want to see multiple houses vacant … 15 or 20 empty shops where once thriving businesses were … because people have decided to move their families on because there’s no industry here,” he said.

“It’s not a scare tactic, it’s the reality of what’s going to happen.”

The Mossman sugar mill is facing collapse after creditors recommended the company be liquidated to pay back millions of dollars of debt.

Financial lifeline for Mossman mill the only solution

Several companies have put out feelers for the ailing Mossman sugar mill but no concrete offers to rescue the business have materialised, with a creditors meeting to vote on whether to liquidate the company set for Thursday.

Administrator John Goggin of Worrells said in his most recent report to creditors he had talks with companies including Super Char, Jet Zero, Solace Private Equity, CSIRO and Renewable Developments Australia.

“I have received an indicative proposal from RDA, however, I am unable to properly assess the proposal as it does clearly address the fundamental requirement of funding the mill operations for the 2024 crushing season,” Mr Goggin said in the report.

“I am continuing to engage with all relevant parties in an effort to find a solution to the funding issue.

“At this point, it is not viable for the mill to continue operations past the end of February unless a funding facility is agreed in principle.”

The report revealed there was $2m damage to rail infrastructure from ex-Cyclone Jasper.

The mill, owned by Daintree Bio Precinct Ltd and its subsidiary Far Northern Milling Pty Ltd, was bought in 2019 from Mackay Sugar, which intended to shut it down, in July 2019.

Since then it has received a total of $45.8m in state and federal government funding.

According to the report, secured creditors are owed $2.62m, there are employee entitlements of $1.23m, statutory creditors are owed $503,000 and contingent creditors are owed $2m.

The mill directors advised the companies owed a further $3.144m to related party employees.

Most of the nation’s mills are owned by international conglomerates such as Chinese state-owned China Oil and Foodstuffs Corporation, and German company Nordzucker AG, which owns Mackay Sugar, but none of these companies have shown an interest in Mossman Mill.

The Thai-based Mitr Phol Group owns MSF Sugar, which has a mill at Mulgrave, Mareeba and Innisfail.

Originally published as Mossman sugar mill meeting draws hundreds ahead of creditors vote