CuDeco collapse leaves trail of debt and disappointment

Cava Hydraulics is among the local businesses that have worked for CuDeco since it opened its Rocklands mine in 2016, and owner Mick Tully says they had trouble getting paid from day one. His business has already successfully taken legal action to recover money owed, but he believes many others will be left out of pocket. Mr Tully was commenting after the announcement this week that three members of FTI Consulting had been appointed as receivers and managers of CuDeco following a strategic review of funding and restructuring options. He said many North Western suppliers had avoided doing business with the troubled mining for some time due to a track record of failing to pay. “Hopefully the people that worked there and were laid off when the company was suspended will get their due,” Mr Tully said. Mr Tully’s business carried out maintenance and repair works at the Cloncurry copper operation. He believed a major factor in the collapse had been the processing plant design, which had been unsuitable for the native copper component of the material mined at Rocklands. “It never was run properly. The plant was never designed for what they needed to do,” he said. “It was always a case of half fixing things instead of shutting it down and repairing it.” Operations at CuDeco’s Rocklands copper mine have been suspended since August 31 last year and its shares have been in a prolonged trading halt. State MP Rob Katter said news of the company going into receivership was welcome in that it may help close a period of uncertainty. He believed there were parties interested in taking over the Rocklands operation, which included significant infrastructure and held a good location. "It has a lot going for it it. I'm sure there will be some people that can see the benefits," he said. "I know some biggers guys have been looking at it." The receivers said on Tuesday they had secured funding from a group of lenders to complete a technical and financial review of the Rocklands project. “A thorough technical and financial review of the project will be conducted, and the receivers’ and lenders’ immediate priority is to explore all opportunities to maximise the value of the assets, either through the recapitalisation or restructure of the company with a view to financing the resumption of income generating activities at Rocklands, or by a trade sale,” the receivers said in a statement to the ASX.

CuDeco collapse leaves trail of debt and disappointment

Industry Queensland

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