Representatives of the Lady Annie mine are in Mount Isa today to talk to creditors about unpaid debts, the North West Star understands.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
While no creditor would go on the record, the Star understands the mine has incurred debts to several local businesses.
The copper mine located 120 kilometres north west of Mount Isa was owned by Chinese firm CST Resources who sold out to in March 2019.
CST's indirect subsidiary CST Minerals Australia Pty. Ltd sold Lady Annie and a related loan for about $23 million after saying operations were downscaled due to depleted copper reserves.
The buyers were former mining magnate Nathan Tinkler's Bentley Resources and unlisted Australian company Kombi Mining.
Under the terms of the sale, Singapore-based Bentley Resources and Kombi Mining paid $1 for Lady Annie and assume up to $22.7 million of the $262.6 million in inter-company loans owned by CST Group's Australian arm to its parent company.
CST said at the time they expected to record a gain of about A$15 million from the disposal.
In May 2017 ASIC banned Mr Tinkler from being a director until February 2021 because of his involvement in the collapse of 11 companies across mining, horse racing and sports and at the time of the sale he denied he was getting back into mining.
"I am banned as a director, so can't be a director and I can't make decisions or advise anyone in anything," he told Mining publication Stockhead.
"That is my punishment for developing two coal mines in Qld and NSW with my own equity and foresight and employing 2000 people in regional areas in mines that pay their state over $200m a year in royalties."
Lady Annie Mine includes a number of open pits and one central processing centre at Mount Isa.
It has been operating since 2010 ramping up to full production of 25,000 tonnes a year.
There has been mining in the region for over half a century and further development at Lady Annie was one of Bob Katter's stated priorities in 2019.
The North West Star has been unable to track down representatives of Kombi or Bentley Resources for comment.
READ MORE: Copper price at five month high
While you are here, subscribe to our weekly email delivered to your inbox every Tuesday and Friday.
Derek Barry
Editor of the North West Star Mount Isa since January 2016. Prior to that, an editor at several regional southern Queensland newspapers. Passionate about telling local stories. Comes with a strange accent to due an Irish accident of birth.
Editor of the North West Star Mount Isa since January 2016. Prior to that, an editor at several regional southern Queensland newspapers. Passionate about telling local stories. Comes with a strange accent to due an Irish accident of birth.
