Hellyer Metals Enters Liquidation
Liquidators have been appointed to Hellyer Metals, the company that until recently operated the Hellyer mine and tailings reprocessing facility in Tasmania's west. Creditors appointed Liam Bailey of Sydney-based insolvency practitioners O'Brien Palmer on Thursday to wind up the company.
Mine Operations and Government Intervention
The Hellyer mine, which employs approximately 80 people at full capacity, has faced significant challenges. In November, the state government issued a cease-work notice due to unpaid royalties.
Resources Minister Felix Ellis stated at the time that Hellyer had "fallen significantly behind in paying their debts due to the Crown," and other compliance issues had escalated.
The government order was eventually lifted three weeks later, once the royalties were paid.
In mid-December, a spokesperson for the mine operators claimed the cease-work order caused $100 million in losses.
They described the order as "unlawful and unilaterally imposed, arising from what were minor issues."
Legal Disputes and Asset Transfers
Hellyer Metals has also been embroiled in a legal dispute with Goshawk Mining over a collapsed business agreement. Last month, Goshawk Mining obtained a freezing order from the Supreme Court of Tasmania. This order aimed to prevent Hellyer Metals and its affiliated companies from transferring assets worth up to $36 million to a new entity, Celestial Investments, and its associated entities.
A spokesperson for Hellyer stated that the mining operations are unaffected by the liquidation proceedings. They asserted that these operations are now owned by the Celestial group of companies, and that Hellyer Metals no longer owns any assets.
The spokesperson claimed the Hellyer assets were legally restructured before the freezing order was issued, and that Goshawk is not a proven creditor.
Goshawk Mining stated it was notified about the liquidator's appointment by Hellyer creditors. Goshawk understands that, based on recent ASIC filings, Hellyer transferred assets and shares around the same time of entering liquidation. This occurred despite these assets being subject to court freezing orders.
Goshawk believes these actions constitute a breach of the court's freezing orders and intends to pursue legal avenues.
Staffing and Production Status
Rumors of staff shortages and unpaid suppliers have emerged at Hellyer's mine, which has struggled to restart operations at full capacity. In early January, Hellyer's spokesperson confirmed staff and skill shortages, particularly in areas like dredging tailings dams and underground mining. The spokesperson attributed these shortages to staff resignations resulting from uncertainty caused by the initial cease-work notice. The company stated it has proactively managed its resourcing needs.
The spokesperson also advised that Hellyer's "aged payables," amounting to approximately $4 million, have now been paid and are up to date. Hellyer aims to ship lead and zinc concentrate via the port at Burnie to its Chinese offtake partner, Chenzhou Jieyin Mineral Co. Yesterday, Hellyer reported its mining operation was almost back at full production.