A foreign investor's bid to save the Ballarat Gold Mine and its 200 employees from ongoing financial struggles has been thrown into doubt following a "fiery" creditors' meeting.
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A resolution put to creditors at the Mercure Ballarat on Tuesday to replace appointed administrators from accounting firm Hall Chadwick with advisory and investment firm Kordamentha was lost 67 votes to 139, leaving the mine's largest creditor and biggest hope for recapitalisation "uncomfortable" with the outlook.
Singapore-based Belgian businessman Jean-Michel Paul previously offered mine owners Balmaine Gold Pty Ltd a $10 million loan to assist with restructuring and development, after the mine suffered a reduction in production and sales in 2022.
Mr Paul told The Courier he was more confident in Kordamentha's ability to oversee the administration process than Hall Chadwick because Kordamentha had "extensive experience" in the mining industry and because Hall Chadwick could not say where they would get the funds to keep the mine going.
He did not say whether he would withdraw his offer, but that he would be "following closely" as the situation evolved, and hoped to be a part of a creditors' inspection/investigation committee.
"At this stage, we're not aware of the plans of the other administrator [Hall Chadwick] and somewhat uncomfortable proceeding with further investment," Mr Paul said.
A source who attended the meeting said the mine's total debt was about $38 million, divided between secured creditors ($20m), unsecured creditors ($12.7m), and employees ($5m). The source said there there were some "fiery arguments" at one stage of the meeting, but that the outcome would not have a big bearing on workers' job security in the short term.
"Both administrators [Hall Chadwick and Kordamentha] know the importance of keeping the mine operating, because if the workforce disappears, that makes it a less attractive purchase for any new owner," they said.
"It just comes down to who would've done a better job with recapitalisation."
The mine's Singapore-based directors are challenging Hall Chadwick's appointment in federal court, with the next hearing scheduled for today, Wednesday March 22.
Mr Paul said the directors succeeding in court would "reset the situation" and "allow [him] to be more comfortable with administration under Kordamentha or somebody else who has extensive mining experience".
Creditor GI 306 Pty Ltd appointed Hall Chadwick on March 8 after Balmaine allegedly defaulted on a $25,000 interest payment on a $2.2m loan. Hall Chadwick declined to comment.
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