A mining contractor with a long history in the Illawarra has gone into receivership, putting at least 25 jobs at risk in another blow to the region’s coal industry.
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WDS, previously known as Walter Diversified Services, announced this week it had appointed voluntary administrators after its financial position became perilous.
Locally, the Mercury understands WDS employs 25 workers at the Appin mine, operated by South 32 (formerly BHP Billiton).
These Illawarra workers remain in limbo while they wait to see whether another company will take over WDS’s contracts.
WDS had been in a trading halt since early last week owing to a contractual dispute with one of its customers.
This week WDS told the stock exchange that Eagle Downs Coal Management, a miner which WDS was servicing in Queensland, cashed a $14.2 million bond on WDS, putting it in a position where the WDS board could not be confident the company would remain solvent.
More to come.
