Australian Owned Coal Mine in Western Kentucky Facing Financial Challenges
An Australian company operating a new coal mine in western Kentucky filed a reportwith the Securities and Exchange Commission on Jan. 8 that said the company failed to make a payment on its debt and has suspended trading of its stock.
Paringa announced at that time it had committed 70 percent of the coal from the mine to regional power companies in 2020.
But Paringa announced this week that its wholly-owned subsidiary, the McLean County-based Hartshorne Mining Group, has hired a global business advisory firm, FTI Consulting, to review its financial outlook and assess funding needed for operations.
Paringa said it has deferred a $1.5 million debt payment to Tribeca Global Resources that was due Dec. 31, 2019.
The company said that mining operations are continuing, but operational and technical challenges have kept production levels from reaching expected volumes.
The Poplar Grove Mine initially faced a legal challenge from brothers Gordon and Ken Bryant, whose family has owned land in that area for more than 100 years. The Bryants claimed that required procedures were not followed in the approval process, the mine's landfill is in an agricultural area, and toxic runoff from the project would be a concern for local farmers.