Imagine a profitable coal mine suddenly forced to shut down, leaving hundreds of workers in limbo and millions in debts unpaid. This is the shocking reality for the Tahmoor coal mine in New South Wales, Australia, where financial turmoil has spiraled out of control. But here's where it gets even more complicated: the mine's owner, British billionaire Sanjeev Gupta's GFG Alliance, has been accused of diverting funds from this profitable operation to prop up struggling parts of its empire, including the Whyalla steelworks in South Australia. And this is the part most people miss: while Tahmoor was turning a profit of $85.7 million in 2024, it was simultaneously loaning a staggering $354.8 million to its sister company, only to see that money disappear into a web of financial deals within the GFG Alliance.
The fallout has been devastating. In February 2025, Tahmoor ran out of cash to pay its suppliers and was forced to close, leaving 500 workers without jobs. While some were stood down with pay, about half—contractors—were later told they would no longer be compensated. The situation escalated on Monday when Liberty Primary Metals Australia (LPMA), the mine's parent company, was placed into voluntary administration. William Buck has been appointed as administrator, tasked with untangling a financial mess that includes over $100 million in outstanding debts, including $29.4 million in unpaid royalties to the NSW government.
But here's the controversial part: GFG Alliance claims this move is a restructuring effort to address financial problems in South Australia, but critics argue it's a desperate attempt to salvage a failing business model at the expense of workers, contractors, and even the government. Documents filed with regulators reveal a complex network of financing deals, with significant funds siphoned from Tahmoor to struggling GFG entities. For instance, in 2024, Tahmoor's total equity plummeted by over 40%, from $479.8 million to $287.3 million, just six months before its closure.
Adding insult to injury, creditors—including contractors, suppliers, and Coal Mines Insurance Pty Ltd (CMI), which is owed $4.7 million—have taken legal action to wind up the company. The NSW government has also imposed charges on Tahmoor's mining leases, and auditors KPMG have issued a scathing disclaimer, questioning the feasibility of the company's financial plans. Meanwhile, workers remain caught in the middle. Last week, 250 contractors were stood down without pay after GFG defaulted on payments, prompting local MP Angus Taylor to call for an 'orderly exit' if the mine cannot restart.
Gupta claims he's exploring all options, from financing to selling the mine, but so far, no concrete solutions have emerged. The question remains: Is this a case of poor financial management, or is there a deeper systemic issue within GFG Alliance? What do you think? Is Gupta's empire simply too sprawling to manage, or is this a deliberate strategy to protect certain assets at the expense of others? Let us know in the comments below.
