Australia's TerraCom to pay about $5 million fine for whistleblower protection breach (updated)

Terracom

27/08/2025 07:54

Adds details and background from paragraph 2 onwards

Aug 27 (Reuters) - Australia's corporate regulator fined TerraCom TER.AX on Wednesday a penalty of A$7.5 million ($4.87 million) after the coal miner breached whistleblower protections.

The Australian Securities & Investments Commission (ASIC) had filed a lawsuit in March 2023 against the miner, alleging it breached whistleblower protections after a former employee claimed it had falsified the quality of its coal for export.

Following the whistleblower's claim, TerraCom made announcements in 2020 denying these allegations.

The company admits that their actions have damaged the whistleblower's reputation by representing him as someone willing to make unfounded accusations for personal gain, ASIC said on Wednesday.

"ASIC took this case because whistleblowers shed light on important issues. Where corporations engage in conduct that harms whistleblowers, even unintentionally, they risk disincentivising others from coming forward," said ASIC Deputy Chair Sarah Court.

TerraCom has also been ordered to pay ASIC's legal costs of A$1 million, ASIC added.

TerraCom did not immediately respond to a Reuters request for comment.

($1 = 1.5389 Australian dollars)

 (Reporting by Sherin Sunny in Bengaluru; Editing by Rashmi Aich)

 ((Sherin.Sunny@thomsonreuters.com;))