Indonesian Miner Ithaca Resources Agrees to Buy Collapsed Vitrinite Assets for Over $200 Million

Indonesian coal miner Ithaca Resources has agreed to purchase the assets of Vitrinite after the Queensland mining company collapsed earlier in the year.

Vitrinite's Vulcan coal mine in the Bowen Basin was put into care and maintenance on February 27, and receivers, KordaMentha, were appointed.

When the company collapsed, it owed $400 million, including $16 million to workers.

An administrator's report from Cor Cordis revealed the Vitrinite group was effectively insolvent from September 30, 2025, and its financial difficulties were caused by "high operational costs" and volatile coal prices.

Four months on from Vitrinite's collapse, Ithaca has agreed to a purchase of more than $200 million.

Ithaca is an Indonesian coal-focused resource company that launched in 2007. The Vulcan project would be Ithaca's first mine outside Indonesia.

KordaMentha has indicated the new owner intends to restart operations at the mine.

Local businesses impacted

Seamus Taylor, owner of an automotive service business in Dysart, was one of many local businesses hit by Vitrinite's financial fall.

Vitrinite engaged Mr Taylor's company to maintain its new haulage fleet in 2025.

He invested about $750,000 in setting up a facility for the work.

"It was probably one of the single-biggest commitments we have made, in what's now 15 years of operation, to a customer for just one particular service," he said.

Within the first seven months, Vitrinite's overdue invoices mounted into the "hundreds of thousands" of dollars.

Mr Taylor's business managed to recover the debt before the company went into receivership.

"We were one of the lucky ones who managed to get it back," he said.

A sign of the times

John Rolfe, a regional economic development professor at Central Queensland University, said Vitrinite's sale was indicative of a wider trend in mining, in which larger players were divesting from coal.

Glencore divested from coal almost a decade ago, and in the past four years, BHP sold its 80 per cent stake in Mitsui Coal, as well as the Blackwater and Daunia mines it owned as part of the Mitsubishi alliance. BHP also said it would wind down its Mt Arthur coal mine in 2030.

This year, Anglo American sold its five steelmaking coal mines in central Queensland to a UK mining company for up to $5.43 billion.

"For the big companies with very diverse holdings, they've been feeling a lot of shareholder pressure from investing in fossil fuels," Professor Rolfe said.

"Rather than fight those pressures, they've gradually wound down their operations because they've got other fish to fry."

Professor Rolfe said these companies had been moving their investments to other in-demand resources such as minerals used in renewable energy.

In their place, more small to medium-sized specialised companies are now entering the industry, evidenced by recent acquisitions from names like Yancoal, Whitehaven, Dhilmar, and now Ithaca.

The future of mining communities

For people living and working in mining communities, Professor Rolfe said the difference would be whether smaller companies were as willing to invest in community infrastructure, and whether they could withstand volatile markets.

"Whether they're able to ride out those tougher times and maintain their support for the regional areas, I think is a question we don't know the answer to," he said.

For now, at least, Professor Rolfe said the quick, four-month sale of Vitrinite's assets pointed to confidence in the economics of Bowen Basin operations.

"Even though there's a lot of change afoot, the mines aren't short of buyers," he said.

Professor Rolfe said Ithaca's commitment to repay some of Vitrinite's debt in the transaction, including employee entitlements, signalled an intent to restart operations soon.

"That's one of the reasons why it's such a good deal for the regional area because it may soften the pain of Vitrinite going bust and leaving some debts behind."

Mr Taylor said he hoped Ithaca would seek local contracts.

"I implore all of the mining operations, small, big and medium to use as much local labour force, local suppliers as they possibly can," he said.

A second meeting of creditors will be held on June 29.