January 18, 2017
by Anne Miller
Stanwell has dismissed a plan put forward by former Coal Reuse spokesman – and now creditor – Wentworth Hill to use the government-owned corporation’s resources to pay back businesses owed millions of dollars when the coal waste removal company went broke.
Earlier this month, Mr Hill released to the media a document entitled a “no-cost, cenospheres commercial-sales profit plan” which suggested the sale of by-products from the burning of coal at the Tarong and Tarong North power stations.
Since the collapse of Coal Reuse in September last year, waste from the two stations has been removed by temporary contractors as well as being put into a “void” – a former coal pit – at Meandu Mine.
When Coal Reuse was placed into liquidation – just over two years into its 10-year contract with Stanwell – it reportedly had about 1400 tonnes of cenospheres from the power stations stored in industrial sheds at Gympie and Pinkenba awaiting a buyer.
southburnett.com.au understands these stockpiles were sold by the liquidator to help raise funds.
With the Coal Reuse cenospheres gone, Mr Hill’s plan suggests the sale of cenospheres owned and stored by Stanwell to pay Coal Reuse’s unsecured creditors.
He said this sale would enable unsecured creditors of Coal Reuse, owed $3.35 million, to be paid 100 cents in the dollar over 2.5 years instead of the 1-3 cents anticipated by the liquidator.
Mr Hill said he had put the proposal to Stanwell on December 8 “only to hit a brick wall”.
“This (plan) was knocked back by Stanwell Corporation just days before Christmas,” Mr Hill said. “This is despite Stanwell sitting on $30 million plus of cenospheres stock doing nothing in a dam and a mine void in Queensland other than be monitored environmentally and costing Stanwell money to look after. “
Mr Hill then took the proposal to “relevant Ministers” in the State Government as well as the leaders of the LNP and One Nation.
“Taking up this no-cost, cenospheres commercial-sales profit plan for 100 cents in (the) dollar to unsecured creditors would demonstrate the Queensland Government is of the people and for the people and is operating in the interests of fairness and compassion for victims of one of its own organisations,” Mr Hill said.
“There is a sound and community relevant basis for the Queensland Government to be seen to be doing the right thing by the Coal Reuse unsecured creditors, who are owed $3,347,820.95, given Queensland-based contractors amount to some $750,000 – contractors who in the main are hard working, largely blue-collar operators focused on supporting their families and meeting their business and financial obligations.”
He said existing stored stocks of Stanwell cenospheres, valued at more than $30 million, could be withdrawn and sold overseas “to meet sales opportunities arranged offshore through one of the world’s leading cenospheres marketers”.
A Stanwell spokesperson told southburnett.com.au the previous management of Coal Reuse “had ample opportunity in the months prior to the appointment of liquidators to either sell cenospheres or recapitalise the company and pay their creditors but failed to do so”.
“In addition, there were numerous occasions that Coal Reuse made commitments to Stanwell that were never satisfied.”
The spokesperson said Stanwell had begun in November a “public, transparent and competitive process for the future offtake of coal combustion products (including cenospheres)”.
This was progressing and “it would be inappropriate to stop this process”.
“Any preferential, direct and/or exclusive disposal of coal combustion products granted to Coal Reuse outside of this process, as proposed by Mr Hill and (former Coal Reuse chairman Rodney) Hudspeth, would raise value, probity and competition issues.”
The corporation spokesperson also noted that Stanwell was not a party to the contracts between Coal Reuse and the businesses which either purchased coal combustion products from Coal Reuse or provided services to Coal Reuse (whether on Stanwell’s sites or otherwise,) and Stanwell was not aware of the details of those contracts.
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- Good News (And Bad) From Stanwell
- Businesses Told To Stop Trading With Coal Reuse
- Fly Ash Firm In Liquidation
- Fly Ash Contractor Under Fire … Again
- Coal Reuse ‘Sympathises’
- DEHP Investigates Fly Ash Claims
- Application Lodged To Wind Up Coal Reuse
- Work To Start On Fly Ash Plant
- Drivers Toast The Good Times
- Contractor Begins 10-Year Fly Ash Deal
