Iron ore miner Nathan River Resources enters administration owing at least $300 million
Nathan River Resources operates in the remote NT near the Gulf of Carpentaria. (Supplied: Nathan River Resources)
In short:
Nathan River Resources has entered administration after a turbulent period where it closed its NT mine and stood down dozens of workers.
The company owes at least $300 million in debt, unpaid wages and payments to the NT government and traditional owners.
What's next?
Perth-based BRI Ferrier have been appointed as administrators.
Iron ore mining company Nathan River Resources (NRR) has gone into voluntary administration, owing more than $300 million in debt, unpaid wages and royalties.
The company owns the Roper Bar mine, 600 kilometres south-east of Darwin in the Northern Territory.
Work at the site stopped in April when the the company stood down its staff.
Five companies in the NRR group have been placed under external administration, with BRI Ferrier appointed as administrators in late May.
ASIC documents show the group of companies owe vast sums of money to employees, contractors, government agencies, partner companies and traditional owners.
This includes payments to traditional owner body the Northern Land Council of more than $2 million, and the NT government is owed more than $6 million in unpaid royalties.
The company also owes at least 38 staff more than $968,000 in unpaid wages and entitlements.
NRR had been exporting iron ore from the Bing Bong port. (ABC News: Michael Franchi)
Electrical Trades Union NT organiser David Hayes said workers were waiting to hear from administrators BRI Ferrier on what they might be able to recover, with some individuals owed tens of thousands of dollars.
"We've got workers missing tens of thousands of dollars from their superannuation, up to four to six weeks pay, people have still got tools left out on site," he said.
"It's an absolute mess out there."
He said the episode was "a blow" to the industry's reputation as a safe investment opportunity.
Mr Hayes said it would make prospective workers think twice before agreeing to work at remote operations in the Territory.
"If we want to attract investment into the NT in mining we need to ensure that the mining operations are financially secure and working properly," he said.
"With an occurrence like this it's going to make people think twice before going out to them [smaller mining operations]."
Staff unsurprised
Employee Adam Rice said he was not surprised by the company's collapse and felt the NT government should have conducted a better "fit and proper person test" before granting licences.
"There's a massive gap in the checks and balances done by the Territory government," he said
"At the end of the day they're the ones that issues licences.
"They're happy to do that, but when things go wrong they say 'we didn't have anything to do with it'."
Contractors who worked at the site have also raised concerns over the NT government's "fit and proper person" test with the ABC.
Environmental and safety issues were also raised by unions and contractors when the Roper Bar site closed in April.
The NT Government, Northern Land Council, Nathan River Resources and BRI Ferrier have been contacted for comment.