AQC Faces $1.07M Statutory Demand as Dartbrook Mine Resumes Operations

Statutory Demand Dispute Emerges

Australian Pacific Coal Limited (ASX – AQC) has formally applied to set aside a statutory demand issued by M Resources Trading Pty Ltd for the sum of A$1,074,006.85. This legal move follows the company’s earlier announcement on 11 July 2025, signaling a dispute over the creditor claim that could have significant financial implications.

Statutory demands are a serious legal instrument in Australian corporate law, often a precursor to insolvency proceedings if not resolved. By applying to set aside the demand, Australian Pacific Coal is contesting the validity or basis of the claim, buying time and potentially avoiding immediate financial distress.

Operational Context – Dartbrook Mine Restart

This legal development comes at a pivotal time for Australian Pacific Coal, which recently resumed underground mining operations at the Dartbrook Coal Mine in New South Wales. The restart followed a capital program completed in 2024 aimed at revitalizing production at this historically significant mine.

Located in the Hunter Valley, the Dartbrook mine is known for producing high-quality, high-energy, low-sulphur thermal coal meeting NEWC specifications. The mine’s strategic location near infrastructure and skilled labor pools supports its operational viability and potential for growth.

Joint Venture and Market Position

The Dartbrook project operates as a joint venture, with Australian Pacific Coal holding an 80% direct interest and a 70% economic interest, alongside Tetra Resources Pty Ltd holding the remaining 20%. This partnership structure underscores the collaborative approach to managing the mine’s assets and risks.

While the statutory demand raises questions about short-term financial pressures, the company’s focus on restarting production suggests a longer-term strategy to stabilize and grow its coal mining operations. Investors will be watching closely for updates on both the legal proceedings and operational progress.

Looking Ahead

Australian Pacific Coal has committed to providing further updates as the situation develops. The outcome of the statutory demand application will be a key indicator of the company’s financial health and its ability to navigate creditor challenges while advancing its mining activities.