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SA Treasurer turns heat on Chinese mine backer as workers chase millions after collapse

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South Australia’s Treasurer has demanded answers from the financial backer of the collapsed Buzzard Mine, as hundreds of workers and contractors continue chasing money allegedly owed following the operation’s downfall.

The remote mine, near Woomera, has been at the centre of growing controversy since about 200 workers were stood down in October, with major contractor Agile Mining Services claiming it is owed about $43 million.

WATCH ABOVE: Treasurer slams Chinese backer of collapsed SA mine

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Workers are understood to have continued operating the site for weeks despite mounting concerns about unpaid invoices and outstanding debts, before the project ultimately collapsed.

Treasurer Tom Koutsantonis has publicly challenged the mine’s Chinese financial backer, Shaun Shan, saying those owed money deserve answers.

“I’ve met Shaun Shan many times,” Koutsantonis said.

“He has a lot of work to do here.

“There needs to be an understanding of making sure they pay their bills and most importantly for the workers.”

Treasurer Tom Koutsantonis has taken aim at Chinese national Shaun Shan after a mine near Woomera collapsed.Treasurer Tom Koutsantonis has taken aim at Chinese national Shaun Shan after a mine near Woomera collapsed. Credit: 7NEWS/LinkedIn

Pressure mounts over impacts to workers, contractors, creditors

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The state government has ordered an urgent briefing into the fallout from the collapse as pressure mounts over the mine’s finances and the impact on workers, contractors and creditors.

The Treasurer said authorities are seeking a better understanding of the circumstances surrounding the operation, including the role of its financial backers and how the project was allowed to unravel leaving significant debts behind.

The collapse has also renewed questions about Shan’s involvement in the project after it emerged he was barred from visiting the mine despite being a key financial supporter.

The businessman was deemed a national security risk by Defence and was not permitted to visit the operation, which sits within the strategically significant Woomera region, a key defence area.

That revelation is expected to form part of broader scrutiny surrounding the mine’s operations and governance as governments and creditors examine what went wrong.

For workers still waiting to be paid, however, the priority remains recovering millions of dollars allegedly owed following one of South Australia’s most dramatic mining collapses in recent years.

Millions are owed to workers after Buzzard Mine collapsed.Millions are owed to workers after Buzzard Mine collapsed. Credit: 7NEWS
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