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.
Administration of Mostyn's, a curtain and soft furnishing retailer that has been trading since 1950 and has an annual turnover of £7m. The company employed 128 staff at its 35 retail outlets and 59 at its head office and manufacturing operation.
Despite a good reputation and solid underlying business and sales, difficult trading conditions together with the costs of dealing with certain historical problems, including onerous property leases, has resulted in the company being put into Administration.
Our team managed to sell the company, preserving the business as a going concern and safeguarding the majority of jobs.
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.