Blair Athol mine operator TerraCom to pay $7.5m settlement over whistleblower treatment

A Queensland mine operator has agreed to pay a multimillion-dollar settlement over the alleged treatment of a former employee who accused the company of falsifying coal quality results.

Blair Athol coal mine near Clermont

The operator of a CQ mine has agreed to fork out a $7.5m settlement ending a two-year legal stoush stemming from the alleged treatment of a whistleblower who accused the company of faking certificates about coal quality.

ASX listed company TerraCom, owner of Blair Athol open cut mine in Clermont, confirmed it had reached an agreement with the Australian Securities and Investments Commission, meaning the civil case would be dropped.

“Under the agreement the parties have agreed to jointly seek orders from the court that TerraCom pay a civil penalty of $7.5m,” TerraCom said this week, confirming it was admitting to one contravention of the Corporations Act 2001.

“With $4m to be paid within 28 days of the court ordering TerraCom to do so and $3.5m to be paid on or before June 20, 2026.”

TerraCom also has to pay ASIC’s million-dollar legal bill.

It was reported in 2020 an investigation into TerraCom’s testing practises had been sparked after former commercial general manager Justin Williams filed an unfair dismissal lawsuit against the company over allegations it manipulated official documents certifying the quality of its coal.

ASX listed company TerraCom, owner of Blair Athol open cut mine in Clermont, confirmed it had reached an agreement with the Australian Securities and Investments Commission.

Mr Williams alleged he was fired in 2019 because he refused demands by chief executive Daniel McCarthy and then chief financial officer Nathan Boom to make lab testing giant ALS change its analysis results about coal quality.

In 2020 TerraCom made two ASX announcements and published an open letter in the Australian Financial Review and The Australian denying Mr Williams’ allegations, stating the company had them independently investigated.

ASIC alleged Mr McCarthy, Mr Boom, Mr Wallace King and Mr Craig Ransley, who were all members of TerraCom’s disclosure committee, failed to take reasonable steps to ensure statements to the ASX were not false or misleading.

The announcements followed TerraCom’s independent investigation, dismissing the whistleblower allegations.

ASIC alleged by allowing the false or misleading statements to be published, TerraCom, Mr McCarthy, Mr Boom and Mr Ransley engaged in conduct that caused detriment to the whistleblower.

In 2023 ASIC commenced civil penalty proceedings in the Federal Court against TerraCom, its managing director Daniel McCarthy, chief commercial officer Nathan Boom, former Chair Wallace King and former director and Deputy Chair Craig Ransley.

At the time ASIC Deputy Chair Sarah Court labelled it a “significant case”.

“It is the first time ASIC has taken action for alleged breaches of the whistleblower provisions. ASIC alleges that TerraCom and its senior company employees engaged in conduct that harmed a whistleblower who revealed the alleged falsification of coal quality certificates,” Ms Court said at the time.

On Tuesday TerraCom made an ASX announcement it had reached an agreement with ASIC subject to Federal Court approval.

The agreement also included both parties filing an a statement of agreed facts and admissions and TerraCom also paying ASIC’s legal costs totalling $1m.

Originally published as Blair Athol mine operator TerraCom to pay $7.5m settlement over whistleblower treatment