PERTH (miningweekly.com) - Embattled Platinum Australia has called in administrators after voluntarily suspending its shares from trading on the ASX.
At the start of this week, the miner launched an “urgent review” into its South African Smokey Hills operation, as the mine failed to reach production forecasts and operating conditions deteriorated.
Platinum Australia has also been embroiled in a dispute with its former contractor.
In a statement to the ASX on Friday, administrators Pitcher Partners Accountants stated that the administration process would be used to restructure Platinum Australia’s affairs, to consolidate its position and to eliminate any legal issues.
The administrator said that further information on the strategy to restructure and recapitalize Platinum Australia would be released once negotiations with key stakeholders had been concluded.
The South African platinum industry has been facing severe pressure, with the government establishing a task team in an effort to save jobs.
Earlier this month, ASX- and JSE-listed Aquarius Platinum placed its second mine on care and maintenance, while South African miner Royal Bafokeng Platinum deferred R462-million in capital expenditure to preserve cash. Eastern Platinum, from Canada, recently suspended funding for a project and a concentrator plant.
