In re Dartbrook Operations Pty Ltd

In July 2025, Northern Mining and Energy Union (MEU) announced that it has filed a case with the Fair Work Commission against Dartbrook Mine. The case surrounds a massive layoff at Dartbrook Mine, which took place after the Mine entered voluntary administration. Dartbrook Mine is an underground thermal coal mine in New South Wales, jointly owned by AQC Dartbrook Pty Ltd ("AQC," holding 80% interest) and Tetra Dartbrook Pty Ltd ("Tetra," holding 20% interest). After accumulating about $47 million in losses and earning less than $1 million in revenue in the second half of 2024, the Dartbrook Joint Venture voluntarily entered external administration on July 3, 2025. David McGrath and Benjamin Campbell, of FTI Consulting, were appointed by Vitol—the senior secured lender based in Singapore—as the receivers of the whole of the assets and undertaking. Despite Dartbrook Mine's default of the $174 million loan, Vitol had expressed its continued support of operating the mine, according to the statement on the Australian Securities Exchange. However, Dartbrook Mine also has debt to other creditors, the total debt exceeding $214 million. The Receivers, after an extensive review of the Dartbrook Mine's operating model, implemented a Revised Operating Model. As part of the new model, however, the size of the workforce (employees and contractors) was to be reduced from approximately 223 to 106 people. Opposing the proposal, the MEU submitted its first application to the Receivers and the appointed administrators of Tetra, seeking orders to rectify allegedly inadequate notification and consultation steps under the Fair Work Act 2009 (Cth). Although an urgent conciliation hearing in relation to the first application took place on July 28, 2025, the matter was not resolved. On the same day of July 28, 2025, the Receivers sent termination letters to 110 individuals stating that their employment or contracts were terminated with immediate effect. Meanwhile, the MEU sent a second application to the same two parties, seeking orders that the Receivers (i) withdraw all notices of dismissal; (ii) issue no further notices of dismissal; and (iii) engage in consultations with the MEU, based on an alleged failure of the Receivers to consult with and notify employees as according to the relevant enterprise agreement.