Bowen Coking Coal (ASX: BCB) faces further financial challenges after the Queensland Revenue Office declined its initial proposal for deferring state royalty payments. The suspended ASX-listed coal miner informed investors of the setback, expressing disappointment, particularly given its ongoing debt restructuring efforts. Bowen Coking Coal is focused on the exploration, development, and production of metallurgical coal. The company aims to supply the global steel industry with high-quality coking coal.
Following the rejection, Bowen Coking Coal said it is in discussions with Queensland authorities and intends to submit a revised deferment proposal. The company hopes to negotiate a more favourable outcome to ease its immediate financial strain. This development occurs as Bowen Coking Coal navigates significant financial pressures, including a recent demand for payment from Indonesian contracting giant BUMA.
Last week, the company disclosed that BUMA is seeking payment of over $15 million, raising concerns about Bowen Coking Coal’s future viability. Adding to these challenges, Bowen Coking Coal received a creditor’s statutory demand for $6.82 million. The company must make this payment within 21 days of July 14 to avoid a deemed insolvency event.
Bowen Coking Coal continues to engage with stakeholders and explore all available options to address its financial obligations and ensure the company’s long-term sustainability. The revised proposal to the Queensland Revenue Office represents a critical step in these efforts.
