Former Hellyer Mine Executives Fail to Set Aside Bankruptcy Ruling Over $8.5 Million Misappropriation

The former chief executive and chairman of the Hellyer mine in north-west Tasmania have failed to set aside a bankruptcy ruling in the federal court.

Brad Monks and Rodger Johnston have been ordered to repay a combined $8.5 million in allegedly misappropriated funds, as well as interest, and the court has ordered their estates be sequestered.

Mr Monks and Mr Johnston both denied the allegations, but in a ruling handed down on Monday, federal judge Kylie Downes found the conduct of the two men during the drawn-out proceedings was "improper", and they had not provided enough evidence to raise a "real question of fact concerning [their] knowledge of, and possible assent to, the impugned transactions".

The transactions in question took place in 2022, when Mr Monks and Mr Johnston were both directors of Hellyer subsidiary Pieman Resources.

At that time, $2.9 million was transferred from a Pieman trust account to two related entities of Mr Monks, Corporate Hustle and Wilson Street Capital.

Separately, another subsidiary, Hellyer Gold Mines (HGM), alleged Mr Monks had misappropriated a further $2.4 million by way of further payments to related entities and unauthorised credit card expenses.

New owners took over the Hellyer mine in early 2024 and commenced proceedings against Mr Monks and Mr Johnston in the federal court in July that year, claiming damages for "breaches of their statutory and fiduciary duties as directors in causing company funds to be misappropriated for their own benefit".

In January 2025, the Hellyer entities obtained bankruptcy notices for a combined $8.5 million in a court judgement that criticised the defendants' conduct as "bordering on bizarre" and apparently "deliberately delaying the proceedings".

The bankruptcy notice against Mr Monks was for $5,474,241.86, and $3,016,025.95 for Mr Johnston.

Mr Monks and Mr Johnston subsequently sought to have those bankruptcy notices set aside and filed a series of affidavits.

They argued that Corporate Hustle and Wilson Street Capital were owed the money, and that the trust account transfers were consented to by the relevant company boards by circular resolution, and the funds were used for the benefit of the broader Hellyer group.

Justice Downes rejected those arguments on Monday, finding they lacked detail and were not supported by documentary evidence.

"That improper conduct continued in these proceedings."

She concluded: "I am not persuaded that sufficient reason has been shown by the respondents for questioning whether behind the judgement there is in truth and reality a debt due by each of the respondents to Pieman and HGM".

In a statement, Mr Johnston and Mr Monks said "in an unfortunate series of events we have been bankrupted on a claim that hasn't been proven".

"We are taking advice as to how to address that, and we intend to provide further information at the appropriate time."

The ruling may be subject to an appeal.

Hellyer Metals was placed in liquidation earlier this year as part of a corporate restructure after the state government issued a three-week stop-work order in October 2025, over alleged compliance failures and unpaid mining royalties.

The mine's current owners, who have rebranded the mine as Celestial Pacific, have claimed the stop-work caused in excess of $50 million in financial damages.

The mine has resumed operations this year, recommencing shipments out of Burnie Port.