Wollongong Coal, with its Wongawilli mine shut down over serious safety concerns, has also been hit with the news that it has failed to satisfy the corporate regulator it hasn't massively overvalued its mine assets.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
The company will spend weeks trying to satisfy the Resources Regulator its mine can be made safe to re-open, after a series of roof collapses.
But Wollongong Coal is also in the sights of the corporate regulator ASIC.
Last December it was suspended from trade on the ASX after ASIC issued a "please explain" notice questioning the companies valuation of its mines at more than $385 million each.
Asset valuation is relevant to assessing a firm's financial health, and whether it remains solvent.
Three months later ASIC has announced it is not satisfied over the valuations, and set new sanctions on the miner.
ASIC's punishment is that WCL can't use a "special content prospectus" for any further capital raising, and must issue a full prospectus to any potential investor. ASIC said it would "continue working with" Wollongong Coal to resolve the concerns.
