Hellyer Metals Faces Liquidation as Liquidator Appointed
Hellyer Metals has entered liquidation following the appointment of liquidators amidst ongoing financial struggles. The Australian Securities and Investments Commission (ASIC) confirmed the engagement of Liam Bailey from the Sydney-based insolvency firm O’Brien Palmer to oversee the process.
Ongoing Financial Challenges for Hellyer Metals
Hellyer Metals, which operates the Hellyer mine and tailings reprocessing facility in Tasmania, faced a significant challenge last November when the Tasmanian government issued a cease work order. This was attributed to the company’s failure to pay royalties. Resources Minister Felix Ellis stated that Hellyer had “fallen significantly behind in paying their debts” and deemed the action necessary to prevent worsening conditions.
- Cease work notice issued in November 2022 due to unpaid royalties.
- Order lifted three weeks later after necessary payments were made.
- Mine employs approximately 80 individuals at full capacity.
Legal Disputes and Financial Losses
In December, Hellyer’s spokesperson claimed that the government’s order led to an estimated loss of $100 million, describing the order as “unlawful and unilaterally imposed.”
Additionally, Hellyer is embroiled in a protracted legal dispute with Goshawk Mining, which recently obtained a freezing order from the Supreme Court of Tasmania. This order prohibits Hellyer Metals from transferring assets valued at up to $36 million to Celestial Investments and associated entities.
Impact of Liquidation
Despite the liquidation, Hellyer Metals claims that mining operations remain unaffected. A company spokesperson indicated that control of the mining operations had transitioned to the Celestial group, suggesting Hellyer only retained minimal assets.
- Ongoing litigation with Goshawk Mining over asset transfers.
- Goshawk alleges breach of court-imposed freezing orders.
Staffing and Operational Issues
Rumors of staffing shortages and unpaid suppliers have circulated, complicating Hellyer’s efforts to return to normal operations. A spokesperson confirmed that recent challenges had led to staff resignations due to uncertainty.
To address these issues, Hellyer has taken steps to proactively manage resources, including recruitment efforts. As of recently, the company reported that its “aged payables” of around $4 million have been settled.
Future Prospects
Hellyer is working toward resuming full production, with plans to ship lead and zinc concentrate via the port at Burnie to its Chinese offtake partner, Chenzhou Jieyin Mineral Co., based in Hunan. The company remains optimistic about reaching full operational capacity in the near future.
