Australian Securities & Investments Commission secures AUD 7.5 million penalty against TerraCom for whistleblower victimisation

The Australian Securities & Investments Commission secured a Federal Court outcome requiring ASX-listed miner TerraCom Limited to pay an AUD 7.5 million penalty for whistleblower victimisation, marking ASIC’s first enforcement outcome for contraventions of the whistleblower provisions. TerraCom was also ordered to pay ASIC’s legal costs of AUD 1 million. The contravention related to two ASX announcements on 14 February 2020 and 3 April 2020 and an open letter to shareholders published on 12 March 2020, which stated the whistleblower’s allegations were false and that employee conduct had been independently investigated. TerraCom admitted the publications caused detriment including hurt, humiliation, distress and embarrassment, and damaged the whistleblower’s reputation by portraying him as making unfounded accusations for personal gain when an independent investigation at least partially supported his allegations. The outcome follows earlier litigation over a PricewaterhouseCoopers report obtained by ASIC under a March 2021 search warrant, with the Full Court ordering TerraCom to provide ASIC with a copy subject to court-approved redactions after finding privilege had been waived by public disclosures. ASIC commenced civil penalty proceedings in February 2023 against TerraCom and several individuals, with the Federal Court dismissing ASIC’s case against the individuals in July 2025.