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Glimmer of hope as mystery investor backs Mossman industry revival
The future is looking a little brighter for the Mossman cane-growing community after a mystery investor swooped in to save the local mill just hours before the company was due to be liquidated.
Less than 48 hours before creditors were scheduled to meet to decide the mill’s fate, company administrator, John Goggins, advised grower and mill representatives that a potential investor had come forward to provide funding alongside green energy company, Clever Power.
Creditor’s met on 29 February and, after much debate, voted to accept a Deed of Company Arrangement, which triggered a 15-day window for the administrator and investor to clear any legal and financial hurdles and get a deal done.
CANEGROWERS Mossman Chairman Matt Watson said growers were shocked when told a mystery investor had come forward.
“It was a huge surprise when we were told a private investor was willing to put money on the table to save the mill,” Mr Watson said.
“Clever Power and the investor would take on the mill and guarantee crushing for at least the next four seasons as they worked to improve and increase production and make the mill more stable before looking to diversify into value-adding opportunities in the energy field.”
“We were concerned about how things would turn out when the investor seemed to have a change of heart at the last minute, and we all attended the creditor’s meeting not knowing for sure what the outcome of all the hard work would be,” Mr Watson said.
“So, we were surprised and heartened when the administrator said there was a potential way forward with a third party and that it was with Clever Power.”
CANEGROWERS had continued to work on possible solutions right up to the last minute, even having representations with Community Cabinet in Cairns on 28 February
At that meeting, Queensland Premier Steven Miles announced the government would provide $12 million to either help a third party run the mill or help the community transition away from sugarcane.
We knew we were staring down the barrel of the end of the cane industry in Mossman
“That was the first time we had it confirmed by the Premier that there was some government funding available,” Mr Watson said.
The last minute announcement of $12 million from the State Government may have helped push the Clever Power deal over the line at a time when the investor seemed to be having second thoughts.
Mr Watson praised the local council and Douglas Chamber of Commerce who made strong recommendations to government to try to save the industry.
“They called the community and businesses together to rally in Cairns at the Community Cabinet because of the real concern that the closure of the mill would be another disaster, on top of ex-Tropical Cyclone Jasper.
“We knew we were staring down the barrel of the end of the cane industry in Mossman and all the consequences that would flow from that.
“So, to have confirmed at the eleventh hour that someone has stepped forward to back the future of the industry, with a view to making the mill a profitable enterprise for the long term, it was just an amazing outcome for the industry and the community.”
Mr Watson said the Clever Power representatives had made it clear their focus over the next four years would be on producing sugar crystals and returning the mill to profitability.
“They sound like a very forward-thinking company, and they have big plans for the mill eventually, but only if those plans prove viable,” he said.
“They have assured us that they are here to work with growers and the industry. Their focus, first and foremost, will be on getting the mill operating. They are determined to make the mill profitable and one of the ways they plan do that is by increasing cane throughput.”
The combined result gives great hope to growers that after years of uncertainty, a new era is finally dawning for Mossman’s cane industry.
“It has been a stressful few years, and the past few months in particular have been especially worrying, but growers are heading into this year’s crush with a renewed sense of confidence in the future and that is fantastic news for the industry and the community,” Mr Watson said.
