NO. 013

The Federal Treasurer, Mr Peter Costello, today welcomed the announcement by the Australian Securities Commission that it will examine the circumstances under which Cobar Mines Pty Ltd continued to trade in the lead-up to its closure and the likely payments to creditors.

The closure of the copper mine has inflicted great hardship on the people of Cobar, and especially on former employees and their families.

The Securities Commission has wide-ranging powers to act if it finds any evidence of breaches of the law on the part of the company directors and officers. It can also take action to recover penalties for such breach.

The Federal Government will ensure that this matter is vigorously pursued to ensure any wrongdoing is addressed.

CANBERRA

18 February 1998

Media Contact:

Niki Savva Treasurer’s office (02) 6277 7340