Last week, it emerged that Bluewaters was seeking to appoint a controller to run the Griffin mine following months of failure by the operation to supply contracted volumes of coal. ( Credit Wikipedia Commons/ swiss-image.ch/Photo Remy Steinegger) Paul Singer, founder of Elliott Management, is one of the most feared activist investors in the world. 'Even a few, perhaps four or five years ago, if I'd suggested or predicted that coal would fall out the WA power system this quickly, well, I wouldn't have believed it myself, I don't think. 'Western Australia is becoming a bit of a microcosm for the future of coal,' he said. He said the West Australian example was of global significance. He noted this was in contrast to eastern states coal suppliers, which had been making windfall profits in recent months after Russia's invasion of Ukraine sent fossil fuel prices soaring.ĭespite this, Mr Nicholas said the long-term outlook for east coast coal miners was not pretty, and that forecast falls in demand for coal-fired power could accelerate given the high prices. 'We just don't see any good news, any improvement to the long-term outlook anymore.'Īccording to Mr Nicholas, Western Australia's coal industry was particularly vulnerable to the rise of renewable energy and the reduction in demand for coal-fired power because it did not have access to export markets. 'It's always bad news for coal-fired power. 'This is a ratchet that only turns in one direction,' Mr Nicholas said. It may also head off moves to take control of the mine by Bluewaters, which is owned by huge Japanese conglomerates Sumitomo and Kansai but ultimately controlled by some of the most feared activist investors on Wall Street. The apparent preparedness of Griffin to appoint receivers brings to a head a long-running saga that has been playing out ever since Indian interests acquired the operation from the wreckage of fallen coal tycoon Ric Stowe's failed business empire. In court earlier this week, he said the document was still subject to 'some negotiation' but the situation was 'near to some form of closure'. However, Griffin lawyer Konrad De Kerloy has acknowledged creditors to the mine, including Indian bank ICICI, have already prepared a draft receivership document. Lawyers for the Indian-owned mine have been fighting in the West Australian Supreme Court to stop a bid by its biggest customer, the Bluewaters power station, to take control of the operation. Expectations are growing that the Griffin Coal mine near Collie, about 180km south of Perth, will be tipped into receivership in coming days following years of heavy losses believed to exceed more than $1 billion.

Power plant tycoon