The future of the Tahmoor coal mine in the NSW Illawarra has grown even more uncertain, with two sets of legal proceedings now threatening its survival.
Coal Mines Insurance, the industry’s workers’ compensation provider, has filed an application in the NSW Supreme Court to wind up Tahmoor Coal Pty Ltd over “significant and prolonged” unpaid debts. At the same time, the mine’s parent company, Sanjeev Gupta’s GFG Alliance, has launched a separate case in the Federal Court to strip away a legacy debt security linked to the collapse of Greensill Capital.
Coal Mines Insurance, which is part of Coal Services, said it had exhausted efforts to reach agreement with Tahmoor’s owners before resorting to insolvency proceedings.
“While this is not the outcome we had hoped for, it is a necessary and responsible step,” Coal Services managing director and CEO Angela Hunter said. “Our priority remains ensuring that impacted workers are well supported and protected in line with our statutory obligations. We are committed to delivering on our responsibilities to the broader NSW coal industry with fairness and transparency.”
The insurer’s move follows months of stalled production. Workers were stood down in February, and while they continue to receive wages, the loss of production bonuses has forced some to seek work elsewhere. Union representatives say members want certainty. “Workers at Tahmoor have endured seven months of uncertainty,” an MEU spokesman said. “They’re ready for this issue to be resolved so that they can get back to work.”
While one arm of the mining sector seeks to wind up Tahmoor Coal, its ultimate owner is pursuing relief of its own in a different courtroom.
Liberty Primary Metals Australia, part of Gupta’s GFG Alliance, has asked the Federal Court to remove a Greensill Capital security registration, arguing the underlying debt was fully repaid last year.
“GFG Alliance has already secured the support of new investors and [is] willing to provide further capital for Tahmoor Colliery. The only impediment to closing these transactions is a legacy Greensill security for an LPMA-specific debt paid off in full on June 30, 2023,” a GFG spokeswoman said.
She added that negotiations with Greensill’s administrators and KordaMentha had been “protracted and unproductive”. “In order to protect jobs, maintain operations, and enable new investment, GFG Alliance is left with no option but to seek urgent relief from the courts to deregister this security and we are hopeful the court will take swift action,” she said.
The mine has not produced coal for more than six months. GFG acknowledges the asset is losing about $4 million a week covering operating expenses, wages and utilities. Its creditors, according to the company, are “rapidly losing patience.”
The refinancing effort at Tahmoor comes against a backdrop of wider financial strain on Gupta’s Australian interests. The Whyalla steelworks and associated mines have been under administration since February, after debts of more than $1.5 billion piled up. CreditorWatch records show Tahmoor Coal has also accumulated more than 50 payment defaults to suppliers.
The dual proceedings highlight the extent to which the collapse of Greensill Capital continues to ripple through Gupta’s business empire. The supply-chain financier’s downfall in 2021 left GFG reliant on fresh injections of capital and sparked multiple legal actions. Ten separate lawsuits worth a combined $7 billion have been lodged in the Federal Court against Greensill’s former insurer, IAG, and a further case has been brought against former broker Marsh McLennan.
For insurers, reinsurers and brokers, the Tahmoor situation underscores how unresolved security disputes and prolonged insolvency proceedings can magnify operational risk. With court battles stretching into 2026, professionals across the industry will be watching closely for how capital providers, creditors and underwriters absorb the fallout.
