Coal quality faking allegations spark probe

Bowen Basin coal miner TerraCom has blasted as 'unfounded' allegations filed in an unfair dismissal case that it was involved in a scheme producing fake analysis of coal samples. The case has prompted testing service ALS to launch an independent, forensic investigation into the processes applied to the certification of coal samples by staff employed within the ALS Coal business stream. National business media this week reported that a former TerraCom commercial general manager Justin Williams alleged in a Federal Circuit Court filing that TerraCom had worked with ALS to falsely upgrade the quality of its coal in export documentation. “TerraCom categorically denies these allegations,” the company said in a statement to the ASX, adding that the company and six directors named as respondents would vigorously defend the case. TerraCom said it took the allegations extremely seriously and had had the conduct of its employees independently investigated. It said coal exported from the Blair Athol mine in Central Queensland was subject to three stages of independent testing. The first was when the coal arrived at the Dalrymple Bay Coal Export Terminal, the second on board the vessel and the third by Japanese and South Korean customers when shipments arrived at the dock. Certificates amended without 'proper justification' In a separate statement to the market, ALS said preliminary investigations had identified that a number of certificates of analysis from two laboratories were amended before their issue without 'proper justification'. The laboratory firm said four staff members of the coal superintending unit had been suspended pending the outcome of ongoing investigations. It has appointed external advisors to conduct an independent, forensic investigation into the processes applied to the certification of coal samples by staff employed in the coal superintending and certification unit within the ALS Coal business stream. “We have acted quickly as soon as these issues were identified, to deal with them and put additional processes in place to ensure they cannot happen again,” chief executive officer and managing director Raj Naran said. The Australian Federal Police said they had received a referral in relation to alleged fraudulent activities of Terracom Resources and Noble Resources International. "The matter was not accepted for investigation," a spokeswoman stated. "The AFP assessed the referral and based on the material provided, there was insufficient evidence to support the allegations. The AFP has referred the matter to ASIC."

Coal quality faking allegations spark probe

Industry Queensland

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