contractor settlement by administators

http://www.miningweekly.com/article/platinum-australia-settles-with-disgruntled-contractor-2012-07-26



Platinum Australia settles with disgruntled contractor
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By: Esmarie Swanepoel
26th July 2012

Updated 1 hour 8 minutes agoTEXT SIZE PERTH (miningweekly.com) - The administrators of embattled Platinum Australia this week reported that a settlement had been reached between the platinum miner’s subsidiary and mining contractor Redpath Mining.

The dispute centered around an underground mining contract at the Smokey Hills mine, in South Africa, which was terminated in October 2010.

Administrators Pitcher Partners said in a statement to the ASX that both Platinum Australia and Redpath considered the outcome to be “sensible”.

In terms of settlement, Platinum Australia would pay Redparth R88-million from a R106-million bank guarantee that was initially provided as security for the contractor’s claim.

Pitcher Partners said that the dispute with Redpath had been a major impediment in the initial phase of the administration process, and a resolution of the matter was a positive outcome.

Platinum Australia went into administration in June this year, after the company voluntarily suspended share trading on the ASX. The miner launched a review of its South African operations after the Smokey Hills mine failed to reach its production forecasts, and operating conditions in the South African platinum industry deteriorated.


Edited by: Creamer Media Reporter