Business
6 March, 2026
Wollondilly in shock as 238 colliery workers face immediate unemployment
The Wollondilly community is in shock tonight with 238 workers at Tahmoor Colliery facing immediate termination.
The Wollondilly community is in shock tonight with 238 workers at Tahmoor Colliery facing immediate termination.
The NSW Supreme Court today (Friday) ordered the mine be placed into liquidation – a devastating decision for workers and their families after a 12-month layoff.
The economic impact on Tahmoor and surrounding communities could be devastating if the liquidators, McGrathNicol, are unable to find a new buyer.
Hundreds of contractors have also been without work – and without financial certainty – for more than a year.
Justice Ashley Black described it as the “toughest decision” he has had to adjudicate in 15 years – in part because of the human impact.
McGrathNicol informed the court on Thursday that liquidation would result in the immediate termination of all the mine’s permanent workers.
However Justice Black said the mine was unlikely to restart under its current management and chose liquidation over voluntary administration.
The mine has been in voluntary administration since early last month (February).
The Tahmoor Colliery is owned by British-Indian billionaire Sanjeev Gupta through his global GFG Alliance.
The mine’s operating entity, SIMEC Mining, is a division of GFG Alliance while 100 per cent of the shares in Tahmoor Coal Pty Ltd are held by Liberty Primary Metals Australia (LPMA), the primary vehicle for GFG’s Mining and Primary Steel (MPS) division in Australia.
LPMA was placed into voluntary administration in November 2025
The Australian Securities and Investments Commission today moved to wind up another GFG Alliance operation – Liberty Bay Bell in Tasmania – for failing to lodge annual reports for the past five years.
LPMA was the parent company that also controlled Liberty Bay Bell.
Thousands of people across the Wollondilly will now have their fingers crossed that McGrathNicol will find a buyer quickly.
However, workers face a tough decision – to relocate with their families and find work elsewhere or to remain where they are in the hope that the mine becomes operational again soon.
As previously reported in The Southern Wire, political leaders are confident the mine remains a viable option – if it is managed the right way.
Federal Member for Hume, and federal opposition leader, Angus Taylor has described the colliery as a “critical asset” for the region and for Australia’s steel and resources industries.
“With the right leadership and investment, I am confident Tahmoor can once again prosper, securing jobs, supporting local businesses and delivering long-term economic benefits for the community.”
Wollondilly mayor Matt Gould has described the mine as “very viable” while the Member for Wollondilly Judy Hannan MP, used a Notice of Motion in Parliament last month to slam “financial mismanagement” of the mine and accused GFG Alliance of letting a “long operational and profitable mine fall victim to financial mismanagement, instability and bad cheques”.
She said coking coal was still needed for the manufacture of steel – despite the move away from coal as a power source.
However, the Mining and Energy Union has warned that the longer the mine remains closed, the harder it will be to restart safely.
It says the mine will lose experienced workers and mine conditions will deteriorate.
Many people thought voluntary administration was the answer, but Gupta reportedly rejected a $350 million offer from RStart – the contractor that employed the Tahmoor colliery’s workforce.
The mine has been effectively closed since February 2025 after running out of cash for critical supplies.
The mine reportedly has debts totalling more than $430 million.
The main call for liquidation came from Coal Mines Insurances – which was owed $4.7 million in workers’ compensation premiums.
GFG Alliance has been accused of stripping the Tahmoor mine of its profits to support its operations elsewhere around the world.
Read More: Wollondilly, Tahmoor