Mining minnow calls in administrators

Still unclear what it will mean for jobs at Vulcan South

It’s still unclear how many jobs will be lost from the Vulcan South coal project following the board’s decision to put parent company Vitrinite into voluntary administration this week.

Vulcan South is a small-scale open-cut project near Dysart with a production target of just under 2 million tonnes of coking coal a year and a three-year life.

According to Administrators Korda Mentha, the business will continue to operate as usual while they seek a buyer.

Like the three other mines that have recently been put into care and maintenance in the Bowen Basin, the main problem has been cyclical low prices. However, Vitrinite has also faced difficult mining conditions, further compounding the problems.

Lobby groups like the Queensland Resources Council have also tried to blame government coal royalties.

Less than 12 months ago, Vitrinite was optimistic about the future when it officially began mining with a HW300 highwall miner at Vulcan South.

The highwall miner provided access to coal seams that traditional methods couldn’t reach, improving operational safety, reducing production costs, and minimising land disturbance.

According to Vitrinite Chief Operating Officer Michael Callan, there were just 90 in operation worldwide at the time.