Rapaport News




Advanced search
Latest Articles
Rough Markets
Polished Markets

Trans Hex to Liquidate Struggling Mining Unit

Talks to sell West Coast Resources have fallen through.
Oct 23, 2019 10:46 AM   By Rapaport News
Print Print Facebook Facebook Twitter Twitter Share Share

RAPAPORT... South Africa-based diamond miner Trans Hex has been forced to liquidate its failing West Coast Resources (WCR) subsidiary after a potential sale of the business fell through.

Takeover negotiations with Kernel Resources have terminated, leaving Trans Hex unable to run the unit, the miner reported last week. As a result, “WCR is not in a position to meet its working capital requirements without the necessary funding being made available,” Trans Hex said.

WCR, which operates the Namaqualand mine, has struggled in the weak market, with rough prices declining 27% in recent months, and mining grades falling to unexpectedly low levels, Trans Hex explained.

Kernel began negotiations with Trans Hex in May with a view to buying 70% of Namaqualand, which is located close to the west coast of South Africa. Kernel also bought Trans Hex’s Lower Orange River operations in April 2018.

The liquidation is the latest in a string of difficulties for Trans Hex. Llewellyn Delport, the company’s CEO since 2004, stepped down in August following continued operating losses that also forced the miner to issue a warning about its ability to stay in business.

Image: The Namaqualand mine. (West Coast Resources)
લેબલો: Kernel Resources, Llewellyn Delport, Lower Orange River, Namaqualand, Rapaport News, Trans Hex, WCR, West Coast Resources
સમાન લેખો
ટિપ્પણીઓ: (0)  Add comment ટિપ્પણી ઉમેરો
ટિપ્પણીઓ ગોઠવો અંતિમ થી પ્રથમ

અમને ફોન કરો: ૧-૭૦૨-૮૯૩-૯૪૦૦
Member License Agreement   RapNet Trading Rules & Code of Conduct    ગોપનીયતા નીતિ  
twitter twitter
વિશે Rapaport
અમારી સાથે જાહેરાત કરો