Hellyer Metals Enters Liquidation Amid Money Laundering Allegations and Government Review
Hellyer Metals, the company operating the Hellyer mine and its tailings reprocessing facility in Tasmania's west, has entered liquidation. This development unfolds as the Tasmanian government reviews the mine's operating license, following allegations that the facility was previously used for money laundering and that former owners had ties to organized crime. The company has also been embroiled in significant legal disputes and faced operational challenges, including temporary cessation of work orders from the state.
Hellyer Metals Enters Liquidation
Liam Bailey of Sydney-based insolvency practitioners O'Brien Palmer was appointed as the liquidator for Hellyer Metals. The company, which at full capacity employed approximately 80 people, has been grappling with a series of financial and operational issues.
Government Scrutiny and Operational Compliance
The Tasmanian government has initiated a process to potentially revoke the Hellyer mine's operating license. This action stems from serious allegations detailed in a letter to Mineral Resources Tasmania (MRT) and referenced in court proceedings. These claims assert the mine was previously a "vehicle for money laundering" and that former owners had associations with individuals linked to organized crime.
In November, Tasmania's Resources Minister, Felix Ellis, directed Hellyer to cease mining operations. This decision was based on significant unpaid debts to the state—which the Minister stated included outstanding royalties—and escalating operational non-compliance issues. Reports indicated the mine was struggling to pay workers and creditors, while CEO Graham Cox incurred substantial corporate credit card expenses. The cease-work notice was lifted in December, or three weeks later, after Hellyer addressed or undertook to address the outstanding non-compliances and paid the royalties.
Following the shutdown, Hellyer CEO Graham Cox wrote to Tasmanian Premier Jeremy Rockliff in December, claiming the shutdown caused over $50 million in damages and accusing MRT of undue "political influence." A spokesperson for the mine operators also stated in mid-December that the cease-work order caused $100 million in losses, describing it as "unlawful and unilaterally imposed." Cox highlighted the current owners' stated efforts to remove alleged "criminal influence" from the company and their continued assistance to federal and state authorities with investigations. The Premier did not reply, and MRT confirmed that the process concerning the potential revocation of the Hellyer mining lease is ongoing.
Mine History and Ownership Changes
The Hellyer mine, located on Tasmania's west coast, operated as an underground lead-zinc mine until its closure in 2000. It left behind millions of tonnes of waste material (tailings) estimated to contain significant gold value.
In 2022, the mine was acquired out of administration by EV Equity Holdings for US$4.7 million. EV Equity Holdings was led by financial adviser Brad Monks, whose firm, Wilson Street Capital, included LW Property Investments among its owners. New owners later stated that LW Property Investments was "affiliated with" the Lone Wolf bikie gang and alleged money laundering under previous ownership contributed to the mine's issues.
Corporate records indicated a patched member of the Lone Wolf bikie gang, who faces trial for importing cocaine, was listed as a co-director of Wilson Street Investments alongside Brad Monks. MIB Family Holdings, another major investor brought in by Wilson Street Capital, was primarily owned by Khaled Baluch. His brother, Mostafa Baluch, pleaded guilty to cocaine importation following an arrest in a related operation. The Australian Taxation Office (ATO) is reportedly investigating the source of funds used in the 2022 acquisition, with Brad Monks and his lawyer confirming cooperation with investigations by the ATO and ASIC. Questions have also been raised regarding the pricing charged by drilling companies, Apex Mining Services and Central Deep Hole Drilling (CDHD), which were jointly controlled by MIB and LW investors.
EV Equity Holdings' attempt to raise $80 million with a "green-tinged pitch" in early 2023 was unsuccessful, and the firm faced a US$55 million debt to ING bank. Brad Monks subsequently connected with Alan Bates and Graham Cox, who eventually purchased the business. Monks later departed amid allegations of misuse of company funds and is now in bankruptcy proceedings after Hellyer sued him for $2.4 million. Wilson Street Capital also entered liquidation.
Legal Disputes and Asset Transfers
Legal disputes intensified, including a case where Goshawk Mining obtained a freezing order from the Supreme Court of Tasmania against Hellyer's assets, specifically aimed at preventing Hellyer Metals and affiliated companies from transferring assets worth up to $36 million to a new company, Celestial Investments, and its associated entities.
During a court-ordered mediation, Goshawk Mining alleged that current Hellyer directors Graham Cox and Alan Bates claimed Khaled Baluch and the controller of LW were under ATO investigation for money laundering. Goshawk also alleged Cox and Bates linked legal action against MIB and LW to an attempted murder of Alan Bates, whose home was firebombed. NSW Police investigated the firebombing but suspended the case, finding no direct connection to the legal dispute.
A spokesperson for Hellyer stated that the mining operations are unaffected by the liquidation, as those operations are now owned by the Celestial group of companies, and Hellyer Metals no longer owns any assets. The spokesperson claimed the Hellyer assets were legally restructured before the freezing order was issued and that Goshawk is not a proven creditor.
Goshawk Mining stated it was notified about the liquidator's appointment by Hellyer creditors. Goshawk indicated that, based on recent ASIC filings, Hellyer transferred assets and shares around the same time of entering liquidation, despite these assets being subject to court freezing orders. Goshawk believes these actions constitute a breach of the court's freezing orders and intends to pursue legal avenues.
Operational Status and Production
The mine, which employs approximately 80 people at full capacity, has faced rumors of staff shortages and unpaid suppliers. In early January, Hellyer's spokesperson confirmed staff and skill shortages, including for dredging tailings dams and in underground mining. The spokesperson attributed these shortages to staff resignations resulting from uncertainty caused by the cease-work notice, stating the company has proactively managed resourcing. The spokesperson also advised that Hellyer's "aged payables" of approximately $4 million have now been paid and are up to date. Hellyer aims to ship lead and zinc concentrate via the port at Burnie to its Chinese offtake partner, Chenzhou Jieyin Mineral Co. Recently, Hellyer reported its mining operation was almost back at full production.