Gujarat Coking Coal has been cut off from a federal government scheme designed to help companies deal with the introduction of the carbon tax.
A Department of Industry spokesman yesterday confirmed that an agreement that last financial year provided the company with almost $9.7 million as part of the Coal Sector Jobs Package was terminated by the government on Tuesday. He would not specify why the government had ended the contract.
Gujarat NRE received the money at the start of the last financial year, but the spokesman said no future funding from the scheme would be paid to the company.
"Gujarat NRE Coking Coal Limited and the department entered into a funding agreement in June 2012. Gujarat was paid almost $9.7 million ... in funding under the Coal Sector Jobs Package at that time," the spokesman said.
"An event occurred which gave the Commonwealth the right to terminate the funding agreement.
"The funding agreement was terminated on Tuesday in accordance with processes set out in the agreement. The termination of the funding agreement is a legal matter for the department and the company concerned."
Gujarat NRE was one of several companies with mines in the Illawarra to receive funding under the package, which provides assistance to "gassy" coalmines to help them adjust to the carbon price, therefore supporting jobs.
Mines will receive funding until the 2016-2017 financial year, as long as they maintain mine operating levels.
Gujarat NRE did not respond to the Mercury's questions about the issue before last night's deadline.
Meanwhile, Gujarat NRE Coking Coal and related company Gujarat NRE Wonga were due to report their carbon emissions for the 2012-2013 financial year to the Clean Energy Regulator by midnight last night. The two companies were previously hit with a combined $8.4 million shortfall charge for failing to report any carbon units by the federal regulator's June 17 deadline.
They were among just four companies that missed deadline, which was met by more than 370 other big emitters.
According to the Clean Energy Regulator database, the Gujarat companies have not made any payments against the shortfall charges since June.