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🇦🇺 Australia /Economy & Trade

Creditors slam NT government over mine's $360m debt, demand oversight

From ABC Australia · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

News Named sources Under investigation
  • Creditors of the NT mine Nathan River Resources (NRR), which owes over $360 million, are criticizing the Northern Territory government.
  • They allege the government allowed the mine to operate for months without sufficient funds, impacting small businesses owed millions.
  • NRR, owned by a Singaporean company, has a history of collapsing and reopening, leaving contractors, suppliers, and employees unpaid.

Small business owners and workers owed millions by the iron ore mine Nathan River Resources (NRR) are demanding greater government oversight, accusing the Northern Territory government of negligence. NRR has entered voluntary administration, with ASIC documents revealing debts exceeding $360 million, including unpaid wages and royalties.

The impact that it has for us, somewhere that has such a small budget, it's felt. It's really felt.

— Michael HansenOperations manager at A.M. Cranes and Rigging, describing the financial impact of unpaid debts.

The Singapore-owned mine, located in the Gulf of Carpentaria, has a troubled history, having collapsed and reopened multiple times over 13 years. Its substantial debts include $18 million to contractors, $4.5 million to the Australian Tax Office, $2.4 million to traditional Aboriginal owners via the Northern Land Council, $6.9 million in NT government royalties, and $2 million in payroll tax. Additionally, employees are owed at least $900,000 in wages, and Glencore is owed $124 million for port usage.

It shouldn't be allowed to occur; we would have hoped that someone would have stepped in sooner to stop the situation or arrest it earlier to stop it from getting out of control.

— Michael HansenMichael Hansen questioning the lack of timely intervention by authorities.

While large corporations and governments are owed significant sums, the most severe impacts are felt by hundreds of small and family-owned businesses across the Northern Territory, Western Australia, Queensland, and nationally. These businesses are left out of pocket, struggling with the financial fallout.

If the government were aware that they were in trouble and allowed them to keep trading and having an impact on local businesses such as ours, then that's just unacceptable.

— Michael HansenMichael Hansen criticizing the Northern Territory government's alleged inaction.

Michael Hansen, operations manager at Darwin firm A.M. Cranes and Rigging, which is owed $98,000 for equipment supplied in 2024, described the situation as devastating for a small budget. "It shouldn't be allowed to occur; we would have hoped that someone would have stepped in sooner," Hansen stated, questioning the government's awareness and inaction. Humpty Doo Welding and Fabrication owner Adam Marsh, owed $51,000, called the situation a "kick in the guts" and expressed concern that unsecured creditors like his business might receive nothing. Marsh noted that non-payment by NT mining companies is not uncommon, but this instance is the worst he has experienced.

It's a kick in the guts.

— Adam MarshHumpty Doo Welding and Fabrication owner Adam Marsh on being left unpaid by the mining company.
DistantNews Editorial

Originally published by ABC Australia in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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