An Australian coal mine company, listed on the ASX, has buried a report into whistleblower allegations, sparking concerns about potential conflicts of interest among senior managers. The Dartbrook coal mine, a joint venture between ASX-listed Australian Pacific Coal (AQC) and Tetra Resources, has faced financial turmoil since its revival in 2024. The mine's collapse into administration and receivership in July 2025, due to a $202 million loan default, has raised questions about the involvement of key executives.
A whistleblower's report, investigated by financial firm Mcgrath Nicol, uncovered damning findings of apparent conflicts of interest by senior managers. The report, which examined the mine's finances from January 2022 to June 2024, revealed a web of connections between the mine and Tetra Resources, the joint venture partner. Tetra Resources owns 20% of the Dartbrook mine and was responsible for its management, with its CEO, Michael Mapp, and executive chair, Brian MacDonald, potentially involved in awarding contracts to companies they directed.
The investigators identified over a dozen deals between the mine and third parties as 'non-arms length' due to professional and personal relationships. Tetra's CFO, Shane Kuflik, was also found to be an indirect shareholder of PBE Mining, a company linked to the mine's operations. The report highlighted a lack of transparency and potential breaches of conflict of interest rules and the code of conduct, as well as the joint venture agreement.
Despite the preliminary findings, AQC appears to have taken no action. The mine's financial implosion has led to a $5 million debt to unsecured creditors, including local operators facing bankruptcy. The then-AQC chief executive, Ayten Saridas, resigned in late 2024, citing ignored concerns about governance and financial management. The company's stock has been suspended since October, and the administrators and receivers have declined to comment on the report.
The controversy surrounding Dartbrook's financial turmoil and the buried report highlights the importance of transparency and accountability in corporate governance, especially in industries like coal mining, where potential conflicts of interest can have significant financial and environmental impacts.
