Creditors of NT mine with $360m debt call for more government oversight

Creditors of Nathan River Resources have criticised the NT government for its lack of oversight of the struggling company. (Supplied: Nathan River Resources) In the wake of Nathan River Resources entering into voluntary administration, creditors have criticised the NT government for its lack of oversight of the struggling company. ASIC documents show the mining company has more than $360 million in debt, including in unpaid wages and royalties. Small business owners who have been impacted by the mining company's collapse have called on the NT government to take a more active watchdog role. Link copiedShareShare articleSmall business owners and workers owed millions of dollars by an iron ore mine that has gone into administration are criticising the Northern Territory government for allowing it to keep operating for months without enough money to pay its bills. Iron ore mining company Nathan River Resources (NRR) has gone into voluntary administration, with ASIC documents showing it owes more than $360 million in debts, including in unpaid wages and royalties. The Singapore-owned mine on the Gulf of Carpentaria has collapsed and reopened several times over 13 years. The iron ore mine is located in the Northern Territory's Gulf of Carpentaria. (Supplied: Nathan River Resources) The company's debts include $18 million to contractors, $4.5 million to the Australian Tax Office, $2.4 million to Aboriginal traditional owners — paid through the Northern Land Council (NLC), $6.9 million in NT government royalties, $2 million in NT government payroll tax, and at least $900,000 to employees in wages. It also owes $124 million to another miner, Glencore. Nathan River Resources used Glencore's Bing Bong port near Borroloola to export its ore. While Nathan River Resources owes governments and big companies millions of dollars, some of the biggest impacts are being felt by hundreds of Northern Territory, Western Australian, Queensland and national businesses — some of them small and family-owned — that have been left out of pocket. A.M. Cranes and Rigging in Darwin is one of hundreds of business who have been left out of pocket. (ABC News: Dane Hirst) Darwin firm A.M. Cranes and Rigging supplied equipment to Nathan River Resources to the tune of $98,000 in 2024 that it has never been paid. "The impact that it has for us, somewhere that has such a small budget — it's felt. It's really felt," Michael Hansen, the company's operations manager said. "It shouldn't be allowed to occur; we would have hoped that someone would have stepped in sooner to stop the situation or arrest it earlier to stop it from getting out of control." Michael Hansen says the impact on A.M. Cranes and Rigging has been significant. (ABC News: Dane Hirst) "If the government were aware that they were in trouble and allowed them to keep trading and having an impact on local businesses such as ours, then that's just unacceptable." Humpty Doo Welding and Fabrication owner Adam Marsh said his business would not have kept doing work for the miner in February and March if it knew it wasn't going to be paid $51,000 it was owed. Adam Marsh says he's worried small businesses won't get paid anything as unsecured creditors. (ABC News: Marcus Kennedy) "We're in damage control at the moment and fingers crossed they might reopen or we won't get paid." Mr Marsh said his company had been left unpaid by Northern Territory mining companies before. "It is quite common, we've had a couple of bad ones in the past but this is the worst so far." Matthew Ryan says it is devastating to traditional owners that the mine has left $2 million in royalties unpaid. (ABC News: Pete Garnish) NLC chairman Matthew Ryan said it is "incredibly disappointing" the company has shut down owing traditional owners over $2 million. He criticised the NT government for its response. Nathan River Resources went into administration and owes about $360 million to creditors including the NT government and traditional owners. "The Northern Territory government should be monitoring miners properly, and making sure they are paying the royalties and fees that they are meant to be paying as per their agreements," he said. "The government needs to put their foot down really and I'm calling on the Mining Minister Mr Maley to do so." The Northern Territory government is legally obliged to make sure mining companies have adequate funds to meet all their liabilities in a so-called fit and proper person test before they are allowed to start operating. The NT organiser of the Electrical Trades Union David Hayes said it would be staggering if the NT Government did not know the company was struggling after it stopped paying worker wages on time in December, along with all of its government taxes. "I believe that the NT government would have known because there were complaints made," he said. David Hayes is questioning how the NT government could not have been aware the company was in fina

Creditors of NT mine with $360m debt call for more government oversight

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