Mining and Metals
A proven track record is the best way to demonstrate our strength and depth of expertise. Below are examples of our team’s recent appointments.
Exploration Due Diligence
The exploration arm of an international operator entered into a joint venture with their local partners in sub- Saharan Africa. Our Partners undertook an enhanced due diligence on the local companies, their directors and their overall business profiles. This work, whilst satisfying the Foreign Corrupt Practices Act and similar regulatory and compliance demands, provided assurance to institutional lenders and political risk insurers in advance of a major long-term capital project.
Product Vulnerability Assessment
Following reports of product loss from a mine, ourPartners conducted a product vulnerability assessment and identified a significant number of liabilities in the recovery, storage and transportation of product. The assessment highlighted key weaknesses in the security resource, systems, policies and procedures.
The company had reportedly suffered loss from internal and external criminal elements and, under the existing operating infrastructure, it was felt unlikely that further losses could be prevented.
A Security Support team was deployed for a period of six months to stabilise the security operation whilst an agreed improvement strategy was developed and implemented.
During this period, we assumed overall management of the security operation whilst vulnerabilities were addressed and a platform for effective security operations was put in place.
Following implementation of the new security strategy, the client has reported a significant improvement in the recovery of product.
Following the decision of a South African government to contract out the management of a state owned mine, officials identified an urgent need to address reported large-scale theft of product and a requirement to develop controls to assure government royalties through increased transparency of recovery and reporting processes.
We were engaged to develop and implement a security programme to reduce the large-scale organised theft of product. Applying a proven mine security concept was instrumental in identifying numerous risks to the mining operation. Structured control mechanisms reduced the level of criminal activity and provided accountability throughout the recovery process.
This improvement programme addressed the fundamental risks that threatened the longevity of the mining operation
Chrome and Platinum Mine
Umnotho weSizwe Resources (Pty) Ltd (“UWR”), based in South Africa, owns and operates a chrome and platinum group metals mine with proven reserves of 20 million tons of premium grade chrome.
UWR began developing the mine in 2010 and started production in April 2011. However operational challenges as well as poor commodity prices led the shareholder to place the company into Business Rescue during February 2013, in terms of Section 131 of Chapter 6 of the Companies Act.
A refinance agreement was put in place to settle all pre-commencement claims and fund the ongoing running of the mine whilst the business rescue plan was implemented. Operational changes to the mine were implemented including, as well as finding a new investor and restructuring the existing bank debt.
The mine has now changed name and is currently operational and profitable and contributing to the local economy in a meaningful manner.
Optimum Coal Holdings and Optimum Coal Mine
In 2015, the board of directors and management of Optimum Coal Holdings and Optimum Coal Mine resolved to place both the companies in Business Rescue due to operational and financial difficulties and extremely difficult coal market conditions.
We were able to negotiate on supply contract pricing as well as entering into an accelerated sales process in order to find a strategic investor.
A strategic investor was found to settle the senior bank debt of R2.5bn and over 3 000 employee and contractor jobs were saved.
GlassRatner Advisory & Capital Group, LLC was retained by the United States Department of Justice in its Clean Water Act penalty lawsuits against BP Exploration & Production, Inc., a subsidiary of BP p.l.c., and Anadarko Petroleum Corporation related to the Deepwater Horizon oil spill in the Gulf of Mexico.
GlassRatner provided litigation support services and performed financial analyses regarding the economic impact on the defendants’ and each defendant’s ability to pay a multi-billion dollar penalty. GlassRatner provided five separate reports in this matter, including rebuttal reports, and Mr. Ratner testified for over 6 hours during the multi-week trial.
After the trial, BP Exploration & Production, Inc. entered into $20+ billion settlement with various governmental agencies. This settlement included $5.5 billion for the Clean Water Act penalty. A $160 million Clean Water Act penalty judgement was issued by the Court against Anadarko Petroleum Corporation, even though Anadarko had no operational involvement and was only an investor in the project.
Nova Biosource Fuels Inc.
We were appointed as financial advisor to the official committee of unsecured creditors in the Nova Holding Clinton County LLC bankruptcy in the district of Delaware. Nova is a 70 million gallon refiner and marketer of renewable diesel fuel products and related co-products using both animal and vegetable feedstock. Our services included a review of operating results and projected budgets, review analysis and oversight of the 363 sale process, evaluation of reorganization and/or 363 sale proposals, forensic investigation in historic use of cash for operations and constructions, and analyzing claims, amongst other things.