Griffin Coal debts reach $2.35 billion as the Government increases the taxpayer’s bailout to $308 million and pays overseas banks $13.5 million

Shadow Minister for Energy Dr Steve Thomas says the debacle of the management of the Collie coalfields has hit high farce with revelations in Parliament that the debt owed to the insolvent and foreign owned Griffin Coal has now hit $2.354 billion and the taxpayer’s funding to cover Griffin’s operating losses until the 30th of June 2026 has risen to $308 million.

At the same time, it has been revealed in Parliament that $13.5 million of WA taxpayers’ money has already been paid to four overseas banks who are secured creditors, with another $18 million likely to go to the same creditor banks.

“The outcome to date of the Government’s mismanagement of Griffin Coal is that WA taxpayers are subsidising the administrators of Griffin $308 million, including payments of $31.5 million to foreign banks that invested in a now insolvent company and nearly another $180 million to Griffin Coal itself to cover the company’s operating losses” Dr Thomas said.

“Griffin Coal was purchased by Lanco Infratech in 2011 for $750 million.

“In 2022 the company was placed in receivership, with debts at that time reported at $1.5 billion.

“At the end of 2022 the Labor State Government under former Premier Mark McGowan announced $19.5 million would be used to prop up Griffin Coal, which was at risk of folding.

“The $19.5 million soon blew out to $23.2 million, and soon after that in June 2022 the Government added another $15.9 million in subsidies to Griffin.

“That was a total of $39.1 million, but in December 2023 the new Premier Roger Cook announced a new and additional $220 million bailout of Griffin Coal.

“Now the Premier has added to that total of $259 million another $49 million in the state budget released two weeks ago.

“The sad part of the subsidies is that they simply kick the problem down the road rather than offer any kind of long term solution to the financial disaster happening in the coal fields.

“Just in case anyone thought the problem was being resolved, answers to other questions in Parliament  have revealed that the total debt owed to Griffin Coal’s secured creditors alone has reached $2.354 billion.

“Which means that while the Labor Government has been tipping $309 million into Griffin Coal, the company’s net position has not improved; it has seriously deteriorated.

“It is astounding to me that this financial outcome is apparently acceptable to the State Labor Government.

“The $309 million handout from Western Australian taxpayers has not solved the financial problems of Griffin or the wider coalfields, it has simply allowed it to get worse.”