Ebony Battersby (25th September 2014 7:02 AM)
AS the first shiploader for the Wiggins Island Coal Exporting Terminal arrives in Gladstone, one of the eight proponents of the project, Bandanna Energy, has entered into voluntary administration.
The 14% shareholder was scheduled to deliver four million tonnes of coal to the WICET facility annually from its major development project, The Springsure Creek Coal Project, south-east of Emerald.
The coal-exploration company was also earmarked as an investor for stage two of the terminal's expansion. It also invested in infrastructure to transport coal to the Port of Gladstone.
Chairman John Pegler said delayed approval of the Springsure Creek mining lease "and the deepening cyclical decline in seaborne thermal coal prices" had exacerbated delays in investor interest and participation.
Advertisement
WICET chief executive officer Robert Barnes did not wish to comment on the circumstances but said his terminal had been set up to cope with changing markets.
"(The) terminal was established with a robust legal and financial structure which has been designed to accommodate changing circumstances," he said.
Federal MP for Flynn Ken O'Dowd said the news was a reflection of the downturn.
"I am very disappointed at the loss of jobs and investment in the region," he said.