Liquidator rejects the latest TNMC offer.
Mmegi
Business
TNMC re-opening delayed
FRANCISTOWN: Fresh information from the liquidator of the mines under the BCL Group suggests that Tati Nickel Mining Company (TNMC) will not open in April next year as anticipated.
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CHAKALISA DUBE |
Tue 19 Dec 2017, 18:00 pm (GMT +2) |
- : No deal: Dixon- Warren rejected an offer price tabled by the TNMC suitor
The news will not be well received by the mine’s former employees, residents of Francistown and surroundings who have been eagerly waiting for the mine to resume operations. TNMC played a vital role in the economy of the city prior to its liquidation.
“We had put the April 2018 time frame (as the date TNMC was supposed to resume operations) because we anticipated that the potential buyer of the mine will put a firm offer (which would result in the conclusion of the sale) before the end of the year. Last week the potential buyer put an offer, which he wanted us to present to the creditors.
“We declined the offer because it was not that convincing. We now have to continue negotiating, meaning that the mine will not open in April as planned,” said the liquidator of the mine, Nigel Dixon-Warren yesterday.
Owing to the recent developments, Dixon-Warren said he could not speculate as to when the mine will re-open. “I think in January or sometimes early next year, that is when I will be able to speculate or put a definite date as to when the mine will re-open.”
He also highlighted that the exclusivity agreement signed with the potential buyer of the mine has expired.
The exclusive arrangement gave the prospective buyer some protection from another party from outbidding him. The agreement signed in October was to last until the last quarter of the year according to Dixon-Warren.
“We have already informed the bidder who we have been in talks with that going forward we will not be solely negotiating with him. We have three companies that have in the past made enquiries but were barred from submitting bids because of the exclusivity deal. We will be opening talks with them in January.”
Meanwhile, last week Thursday the High Court confirmed through a notice that BCL Mine in Selebi-Phikwe will be placed under final liquidation.
The court indicated that TNMC would remain under provisional liquidation until April next year. TNMC is still deemed a viable business entity than BCL mine.
The liquidator of the mine has also often maintained that his priority is to sell TNMC as conditions of its sale are less complex because it is under provisional liquidation.
The two mines that belong to the BCL Group were liquidated in October last year due to cash flow problems. At TNMC 705 employees directly lost their jobs while at BCL over 4,000 people lost their jobs. Companies servicing the two mines also shed jobs.
As often stated this is a waiting game.....it must be remembered both Airstrip Copper and Dibete prospects are on permits which form part of the BCL JV. I would imagine whomever buys TNMC or another will be looking at the Selebi-Phikwe smelter, and as we know Maibele North/Airstrip/Dibete lie between Tati and Selebi. It is also worth remembering BCL were buying and processing the Tati ore when/before both were shut down.
Today's press is full of reports of strong copper markets due to supply deficits, Nickel tonight is 5.44US$/lb, Copper 3.17, and cobalt strong as always.
Regards to all.
Palladium Price 1,064.00 USD/ozt (886.32 EUR/ozt) 29 Dec 2017 21:59 UTC - 52 Week Low 675.05 USD/ozt 52 Week High 1,076.20 USD/ozt (InfoMine again).
