The Tahmoor Coal Mine, a New South Wales coal mine, has been in the spotlight due to its financial turmoil and unpaid royalties. The mine, owned by British billionaire Sanjeev Gupta's GFG Alliance, has been closed since February, leaving 500 workers without pay. The situation has raised concerns about the company's financial management and the impact on workers and suppliers.
The issue stems from a complex web of financing deals within the GFG Alliance consortium. Documents reveal that significant funds were diverted from the profitable Tahmoor Colliery to struggling parts of the business, including Whyalla. This led to a $354.8 million loan being transferred to Tahmoor's sole shareholder, LPMA, as a $427 million dividend, causing a significant drop in the mine's value.
The total equity of Tahmoor Coal dropped by more than 40 percent, from $479.8 million in June 2024 to $287.3 million by September 2025. Six months after the deal was finalized, Tahmoor was forced to close due to an inability to pay for 'operational critical supplies'.
The company has proposed further refinancing, loan tranches, and cash injections to restart operations, but the timeline is tight. Tahmoor's auditor, KPMG, has warned that there is no evidence that these plans are realistic. The situation has led to unpaid royalties and invoices, with the NSW government demanding $29.4 million in unpaid royalties and Coal Mines Insurance Pty Ltd (CMI) owed $4.7 million.
Creditors, including contractors and suppliers, are also chasing more than $17 million in unpaid invoices. The company's directors estimated that it would need to raise $244 million to fund operations until the end of 2026. The GFG Alliance has injected $60.4 million into Tahmoor since operations were suspended, but the mine's main contractor, RStar, stood down 250 workers when GFG defaulted on payments.
The controversy surrounding the mine's financial management and the impact on workers and suppliers has sparked debates about the company's responsibility and the need for an 'orderly exit' if the mine cannot be restarted. Sanjeev Gupta has stated that he remains 'open to all options' and has held preliminary discussions with potential buyers, though these have yet to bear fruit.
