❓ A WA parliamentary question scrutinises the government's financial support to Griffin Coal, questioning its solvency, transparency, and the Premier's involvement. The government provides some data but cites commercial sensitivity to withhold further details.
AnsweredQoN 1021Legislative Assembly
QuestionView source ↗
I refer to the decision to provide $220 million to Griffin Coal, in addition to previous grants of $39 million, and I ask: (a) How much coal did Griffin Coal mine and sell to its customers in each of past three years; (b) What was Griffin Coal’s annual revenue for each of the past three years; (c) What is the cash operating result for the Griffin Coal mine operation for past three years; (d) Has Griffin Coal sought and obtained higher prices from its coal customers if the mining operation was not cash flow positive, and if not, why not; (e) What evidence was the government presented to demonstrate the need for the substantial government assistance; (f) Has Griffin Coal been trading insolvent since the appointment of administrators and liquidators to the mine; (g) If Griffin Coal is operating lawfully by being solvent, why is the government providing funding to the company; (h) Did the Premier communicate with any parties other than company and government officials regarding the funding proposal; (i) If there was communication with other parties, who were they and why were they involved; (j) Does the Premier know what role Johnn Poynton has with Griffin Coal; (k) Does the Premier agree that such a large government payment to a company deserves full public transparency and government accountability; and (l) If yes to (k), will the Premier table Griffin Coal’s annual financial statements for the past three years along with agency briefings to government on the funding proposal, and if not, why not?
AnswerView source ↗
Answered
16 April 2024
Responded by
Minister for State and Industry Development, Jobs and Trade
Response time
5 days
(a) Griffin Coal produces financial reports based on the financial year from 1 April to 31 March. The receivers and managers have advised that:
· For the financial year to 31 March 2022, Griffin Coal sold 2.2 million tonnes to its customers.
· For the financial year to 31 March 2023, Griffin Coal sold 2.0 million tonnes to its customers.
· For the financial year to 31 March 2024, Griffin Coal sold 2.4 million tonnes to its customers.
(b) Griffin Coal produces financial reports based on the financial year from 1 April to 31 March. The receivers and managers have advised that:
· For the financial year to 31 March 2022, Griffin Coal had customer revenue of $117,846,000.
· For the financial year to 31 March 2023, Griffin Coal had customer revenue of $131,764,000.
· Audited financial statements for the financial year to 31 March 2024 are not available.
(c) Griffin Coal produces financial reports based on the financial year from 1 April to 31 March. The receivers and managers have advised that:
· For the financial year to 31 March 2022, Griffin Coal had a net cash flow of -$2,911,000.
· For the financial year to 31 March 2023, Griffin Coal had a net cash flow of $16,911,000, inclusive of Government funding.
· Audited financial statements for the financial year to 31 March 2024 are not available.
(d) The receivers and managers have sought higher prices from coal customers. These details are confidential and commercially sensitive.
(e) Government received commercial advice from Ad Astra Corporate Advisory and advice relating to funding matters and mine operations from KPMG. The receivers and managers of Griffin Coal have also provided relevant financial information to enable Government to assess funding requirements.
(f – g) Government is committed to supporting the continued operations at Griffin Coal until June 2026 to prevent a sudden mine closure, ensure energy system security, and provide certainty to the Collie workforce and community.
(h) No.
(i) Not applicable.
(j) No.
(k – l) The Government is committed to transparency and will provide as much information as possible, noting the commercially sensitive nature of the matter.
· For the financial year to 31 March 2022, Griffin Coal sold 2.2 million tonnes to its customers.
· For the financial year to 31 March 2023, Griffin Coal sold 2.0 million tonnes to its customers.
· For the financial year to 31 March 2024, Griffin Coal sold 2.4 million tonnes to its customers.
(b) Griffin Coal produces financial reports based on the financial year from 1 April to 31 March. The receivers and managers have advised that:
· For the financial year to 31 March 2022, Griffin Coal had customer revenue of $117,846,000.
· For the financial year to 31 March 2023, Griffin Coal had customer revenue of $131,764,000.
· Audited financial statements for the financial year to 31 March 2024 are not available.
(c) Griffin Coal produces financial reports based on the financial year from 1 April to 31 March. The receivers and managers have advised that:
· For the financial year to 31 March 2022, Griffin Coal had a net cash flow of -$2,911,000.
· For the financial year to 31 March 2023, Griffin Coal had a net cash flow of $16,911,000, inclusive of Government funding.
· Audited financial statements for the financial year to 31 March 2024 are not available.
(d) The receivers and managers have sought higher prices from coal customers. These details are confidential and commercially sensitive.
(e) Government received commercial advice from Ad Astra Corporate Advisory and advice relating to funding matters and mine operations from KPMG. The receivers and managers of Griffin Coal have also provided relevant financial information to enable Government to assess funding requirements.
(f – g) Government is committed to supporting the continued operations at Griffin Coal until June 2026 to prevent a sudden mine closure, ensure energy system security, and provide certainty to the Collie workforce and community.
(h) No.
(i) Not applicable.
(j) No.
(k – l) The Government is committed to transparency and will provide as much information as possible, noting the commercially sensitive nature of the matter.
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