June 8, 2016
Coal Reuse chairman Rodney Hudspeth says “restructuring and refinancing” of the business is on track to be completed by the end of June.
The company, which has a 10-year contract to remove fly ash and other combustion waste materials from the Tarong and Tarong North power stations, is currently the subject of an application lodged in the Supreme Court by creditors seeking that it be wound up.
Mr Hudspeth said on Wednesday he “sympathised” with creditors and was “personally dealing with each key creditor to ensure he understood exactly how best to take the most appropriate steps to assist them”.
“We are moving forward confidently, and appreciate the patience of those affected,” he said.
At least one South Burnett business claims to be owed more than $80,000 by Coal Reuse Pty Ltd.
Mr Hudspeth said Coal Reuse had invested $5 million to date and was “well advanced on spending another $1 million on equipment” for Tarong North fly ash requirements and additional capital at Tarong to fulfil its obligations to Stanwell Corporation.
He said that in the second half of 2014, Coal Reuse had embarked on an “innovative strategy” to open access to Stanwell coal combustion products for south-east Queensland.
“Unfortunately, part of that implementation strategy has been delayed,” Mr Hudspeth said.
“The restructuring and refinancing of Coal Reuse Pty Ltd will be beneficial to our creditors, the South Burnett community, and to the market for coal combustion products in Queensland.
“Coal Reuse has a 10-year contract with the Stanwell, and Coal Reuse remains fully committed to ensuring our obligations under that contract are fulfilled.”
Mr Hudspeth said Coal Reuse had been notified on Monday that the Department of Environment was “seeking information on the best use of coal combustion products” and would work with the Department to ensure that Coal Reuse continued to meet its obligations with full transparency.
“We are seeking a meeting with the Department on this matter, and are confident that Coal Reuse operates within the guidelines provided,” he said.
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