The liquidator was appointed by Hellyer Metals, which until recently operated the Hellyer mine and tailings reprocessing facility in western Tasmania.

Creditors on Thursday appointed Liam Bailey of Sydney-based insolvency specialist O’Brien Palmer to liquidate the company, according to documents filed with corporate regulator Australian Securities and Investments Commission (ASIC).

At full capacity, the Hellyer mine employs approximately 80 people. The state government issued a notice to suspend operations due to non-payment of royalties.

Resources Minister Felix Ellis said at the time that Hellyer was experiencing “significant delays in debt payments due to the Crown and other compliance issues that continue to escalate.”

The government order was lifted three weeks after the royalties were paid.

In mid-December, a spokesperson for the mine operator claimed that the stop-work order caused losses of $100 million and was “unlawfully and unilaterally imposed due to minor issues, issues that do not justify the forced closure of the complex, continued underground mining operations, and forced closure of tailings reprocessing operations.”

Hellyer Metals is also the subject of a long-running legal dispute over a broken business agreement with another quasi-resources company, Gohawk Mining.

Last month, Gortaka Mining obtained a freezing order from the Tasmanian Supreme Court to prevent Hellyer Metals and its affiliates from transferring up to $36 million worth of assets to a new company, Celestial Investments, and associated entities.

A spokesperson for Hellyer told the ABC that the mining operation would not be affected by the liquidation as it is now owned by the Celestial Group of companies and Hellyer Metals no longer owns anything.

“Hellyer’s assets were legally restructured long before that. [freezing] The order was given without their advocacy or knowledge,” the spokesperson said.

“Goshawk has not been proven to be a creditor of the company.”

In a statement to the ABC, Goshawk Mining said it was notified by Hellyer creditors yesterday morning of the appointment of a liquidator.

“Gotaka believes these actions are a violation of the court’s freezing order and intends to pursue all available legal avenues to protect its position and the interests of its stakeholders.”

The ABC has contacted liquidator O’Brien Palmer and the state government for comment.

The Hellyer mine is struggling to restart operations at full capacity amid rumors of staff shortages and unpaid suppliers.

In early January, a Hellyer spokesperson acknowledged that the company was short on staff and skills, including for the underground mine as well as dredging workers at the tail dam.

A spokesperson said: “As a result of the illegal stop work notice which resulted in the closure of Hellyer Mine, a number of staff have resigned due to uncertainty.”

“During this time, we are proactively managing our resources to ensure continued operations, including recruiting and mobilizing our workforce.”

A spokesperson advised yesterday that Hellyer’s approximately $4 million in “past due payments” have been paid and brought up to date.

Hellyer was aiming to transport lead and zinc concentrate via the Burney port to Chinese offtake partner Chenzhou Jiefang Mineral Co., Ltd., based in Hunan province.

Yesterday, Hellyer announced that mining operations have returned to near full production.