IN A surprising turn of events, Mossman Mill has received a stay of execution thanks to the appearance of a mystery investor.
Canegrowers Mossman chairman and grower Matt Watson was breathing a "big sigh of relief" on February 29, following a meeting where creditors met to determine the future of the Far Northern Milling mill.
"It was a shock to everyone...it was a bit of a bombshell when this investor, this company came in at the last minute," he said.
"Thank god they did. I'm not sure what would have happened if they hadn't swooped in when they did.
"It's still early days yet...it's not a simple process to take over a sugar mill and they're just working out the details of what's expected from them and the growers to bring the mill back up to its glory days.
"There's a lot to work through between now and the start of the season, but the initial talks we've had with them are promising."
The future of the mill hung in the balance as creditors voted on whether or not it would be placed into liquidation.
"We've got a crop, about 60m ready to go. We've been planting and fertilising and getting the crop ready for the season this year. But up to this point, we were still not sure if we'd able to cut that crop," he said.
"Rumours were floating around and the mill workers had been left in the dark. It was a bit frustrating not knowing what's going on.
"We all knew we were staring down the barrel of the end of the sugarcane industry in Mossman and all the consequences that would flow from that.
"It's a big sigh of relief for sure. It's pouring rain here at the moment, but feels like the sun is shining."
Mr Watson said while the identity was still unknown, it had been confirmed that the investor was an Australian man who he imagined would have an "understanding of farming and the ups and downs of it".
"I look forward to meeting them...I'd like to have an opportunity to shake their hand."
Earlier this week the administrator advised grower and mill representatives that a potential investor had come forward to provide funding alongside energy company, Clever Power.
"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," Mr Watson said.
"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 today not knowing for sure what the outcome of all the hard work would be.
"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.
"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," Mr Watson 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."
Before the meeting, Daintree Bio Precinct creditors approved the Clever Power plan, on the administrator's recommendation.
The administrator and investor now have 15 days to produce a legal document and finalise financial arrangements and sign on the dotted line before the deal is finalised.
Without the deal, the mill could find itself facing liquidation again in a matter of weeks.
The Daintree Bio Precinct Group and its subsidiaries, including Mossman Mill operator Far Northern Milling, went into voluntary administration in November 2023.
Earlier this month, Canegrowers Mossman made the appeal for state government intervention to help save the region's largest employer.
The Queensland Agriculture Minister Mark Furner told industry leaders on February 21 that the government had yet to decide whether it would step in to save the small far north community.
Just hours after the meeting with Minister Furner, the Administrator handed down his report in which he recommended to creditors that the company be liquidated.
On February 28, after pressure from local growers, Premier Stephen Miles offered Mossman a $12m funding package aimed at attracting a viable buyer to take on the 127-year-old mill or else transition it away from the sugar industry.
On November 10 2023, a letter from FNM chairperson Rajinder Singh was sent to growers, stating the FNM had been "forced to reconsider" whether Mossman Mill was in a financial position to crush for the 2024 season.
"The viability of the Mill for the 2024 season can no longer be assured," the letter read.
The factors behind change in position were cited as a "significant reduction in actual crop tonnage as against that which was forecasted at the beginning of the 2023 season", "significant reduction in actual CCS (commercial cane sugar) as against that which was forecasted", "extended cane supply stoppages", and "adverse weather conditions".
Growers were advised to consider 2024 season pricing and farming expenditure as matters of priority.
A first meeting of creditors was held on November 30 2023, followed by a second meeting of creditors was held on December 22 which was adjourned to allow more time for a Deed of Company Arrangement to be sourced and considered.
The reconvened the second meeting on February 29.
In a report to creditors by voluntary administrator John Goggin, it was stated that he had engaged with various interest parties who "expressed interest in supporting the group with a view to advancing the Daintree Bio Precinct concept".
"The concept of the Precinct project was to transform the Mossman Sugar Mill into a modern Biosynthesis and clean energy precinct by 2030," the report read.
"The mill aims to transition away from the production of raw sugar and diversify toward a high value bio hub supported by advance clean energy, waste management and re-cycling infrastructure.
"It is intended that the project will be a substantial biofuel producer including products such as sustainable aviation fuel (SAF) and renewable diesel for remote communities."
Mossman Mill is supplied by 80 cane growers from around the region, employs around 150 staff and supports 500 indirect jobs in the community.
