Opposition asks about the uncertainty surrounding negotiations with Griffin Coal's counterparties and the conditions the government requires them to meet. The government's response is vague, stating the uncertainty relates to the time it takes for counterparties to reach an agreement and that the government expects a commercial agreement based on a price that supports the mine's operation.

AnsweredQoN 1225Legislative Council
Asked
12 October 2023
Portfolio
State and Industry Development, Jobs and Trade

QuestionView source ↗

GRIFFIN COAL — KPMG AND AD ASTRA CORPORATE
ADVISORY
1225. Hon Dr STEVE THOMAS to the minister representing the
Minister for State and Industry Development, Jobs and Trade:
I refer to my question without
notice 1070 of 19 September 2023 on the advisory roles, duties and deliverables
and measurable outcomes of consultants Ad Astra Corporate and KPMG in their
engagement with the insolvent Griffin Coal.
(1) What is ''the
significant uncertainty'' as to when negotiations with the
counterparties can be resolved to the satisfaction of the government?
(2) Who are the
aforementioned ''counterparties'', and who or whom specifically
represents them?
(3) What
conditions does the government require the counterparties to agree upon, and
what time frame has government applied to the meeting of these conditions?
(4) Who or whom determined the scope and detail of
conditions required to be met by the so-called counterparties?

AnswerView source ↗

I thank the Leader of the
Opposition for some notice of the question.
(1) The
significant uncertainty relates to how long it may take the counterparties to
undertake negotiations and reach agreement.
(2) The
counterparties are the parties connected to Griffin Coal, its customers and any
other commercial party that may have an interest in the mine or its output.
(3) The
government has expressed the firm belief that Griffin Coal's financial
difficulties should be resolved through
commercial agreement with Griffin Coal's customers based on paying a price
for coal that supports the stable operation of the mine. The government
has not set a time frame.
(4) Not applicable.

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