An Australian company operating a new coal mine in western Kentucky has asked the Australian stock exchange to extend the halt of trading of the company’s securities. Paringa Resources is facing financial and geological challenges.
The Australian Securities Exchange first suspended the trading of Paringa Resources stocks at the request of the company on Dec. 23.
That’s when Paringa reported that its Poplar Grove Mine in McLean County encountered a geological fault that had not been identified by consultants who prepared the original plan for the mine.
That fault required the coal company to cut through rock, substantially reducing production and negatively impacting revenues.
The company initially planned to make an announcement to the Australian Securities Exchange by Dec. 27.
The Poplar Grove Mine is operated by Hartshorne Mining Group, a wholly-owned subsidiary of Paringa.
On Jan. 8, Paringa announced that Hartshorne had not made its debt payment of $1.5 million that had been due at the end of last year.
Paringa has told the Australian Securities Exchange that it plans to make an announcement by Jan. 28 with an update on discussions with the company’s lenders.