- Cleanaway Waste Management (CWY) is expecting its New Chum inert landfill in Ipswich, Queensland, to be closed for FY23 after flood damage, costing millions
- The company is expecting to pay up to $40 million to clean-up New Chum, which includes $11 million for works to be undertaken in FY23
- In May, Cleanaway disclosed that reducing volume intake at New Chum would impact EBITDA by $10-$15 million in FY22, a further $10 million has been added due to the closure of the site
- A further $6 million of net costs will also be incurred in FY22 due to flood damage at other sites
- CWY shares drop 2.24 per cent end the day trading at $2.62
Cleanaway Waste Management (CWY) is expecting its New Chum inert landfill in Ipswich, Queensland, to be closed for FY23 after flood damage, costing millions.
During the floods in February, the company saw its new cell that was under construction flooded. Not long after, the site closed and remediation activities commenced, this included tankering water offsite for treatment and disposal.
However, May bought further rain and added to the damage.
The company is expecting $30-$40 million of costs to be incurred for the cleanup at New Chum for the 2022 financial year, this includes $11 million to cover further works to be undertaken in FY23.
These works including removing water and slit from the new cell, remediating and protecting the damaged cell, and treating and removing excess leachate from site.
Cleanaway said there is potential to recover costs related to property damage through insurance, however, no potential recovery will be reflected in FY22 financial statements.
In May, Cleanaway disclosed that reducing volume intake at New Chum would impact EBITDA by $10-$15 million in FY22. This has been further impacted by around $10 million due to the closure of the site.
Currently, Cleanaway is undertaking multiple workstreams at the site to develop a solution to reduce the body of water and manage the risk of offsite odour.
A further $6 million of net costs will also be incurred in FY22 due to flood damage at other sites.
CWY shares dropped 2.24 per cent and ended the day trading at $2.62.