ZCI devrait recoter fin juillet : 8 repreneurs en lice pour ses mines
More suitors for Mowana Mine
Up to eight suitors are conducting due diligence into African Copper’s suspended mines, Mowana and Thakadu, with a view to possibly making formal bids, BusinessWeek has established.
By Mbongeni Mguni Fri 10 Jun 2016, 12:55 pm (GMT +2)
African Copper shut Thakadu and Mowana in May and November last year respectively citing end of life and associated costs as well as plummeting prices of copper.
In April, liquidators involved in the disposal of the operations said at least three bidders had expressed interest in taking up the mines.
PricewaterhouseCoopers managing director, Butler Phiri said about eight bidders were in the running to take over the mine.
“We are in the due diligence process at the moment where the potential bidders are accessing data on the mines in respect of geology, the extent of the ore reserves, quality of the plant and others,” he told BusinessWeek. “That will inform their decision to bid for a purchase.”
It is understood the bidders include mining companies in Botswana, in the region and internationally. Phiri said the due diligence process for potential bidders would end on June 30, 2016 before matters proceed rapidly to a conclusion.
Potential bidders will have to make
their formal bids by July 7, ahead of a creditors’ meeting, where formal offers will be tabled for consideration.
“My plan is to call a creditors’ meeting by July 28 in which I expect that the liquidation accounts will be laid before the Master (of the High Court) and creditors,” Phiri said.
“That’s when I expect that the liquidation process will be substantially ended,” he added.
Last year, creditors pushed for Mowana to be placed under liquidation, in order to squeeze out payments from African Copper running into hundreds of millions of pula.
Diesel Power Mining Services, which signed a P1.2 billion contract for mining works at Mowana in 2014, led the creditors’ charge, demanding settlement of a P47 million debt.
African Copper is also heavily indebted to its major shareholder, ZCI Limited, as well as local banks.
At least 500 workers were retrenched after Mowana closed in April, with hundreds more having been axed after Thakadu’s closure.
More suitors for Mowana Mine
Up to eight suitors are conducting due diligence into African Copper’s suspended mines, Mowana and Thakadu, with a view to possibly making formal bids, BusinessWeek has established.
By Mbongeni Mguni Fri 10 Jun 2016, 12:55 pm (GMT +2)
African Copper shut Thakadu and Mowana in May and November last year respectively citing end of life and associated costs as well as plummeting prices of copper.
In April, liquidators involved in the disposal of the operations said at least three bidders had expressed interest in taking up the mines.
PricewaterhouseCoopers managing director, Butler Phiri said about eight bidders were in the running to take over the mine.
“We are in the due diligence process at the moment where the potential bidders are accessing data on the mines in respect of geology, the extent of the ore reserves, quality of the plant and others,” he told BusinessWeek. “That will inform their decision to bid for a purchase.”
It is understood the bidders include mining companies in Botswana, in the region and internationally. Phiri said the due diligence process for potential bidders would end on June 30, 2016 before matters proceed rapidly to a conclusion.
Potential bidders will have to make
their formal bids by July 7, ahead of a creditors’ meeting, where formal offers will be tabled for consideration.
“My plan is to call a creditors’ meeting by July 28 in which I expect that the liquidation accounts will be laid before the Master (of the High Court) and creditors,” Phiri said.
“That’s when I expect that the liquidation process will be substantially ended,” he added.
Last year, creditors pushed for Mowana to be placed under liquidation, in order to squeeze out payments from African Copper running into hundreds of millions of pula.
Diesel Power Mining Services, which signed a P1.2 billion contract for mining works at Mowana in 2014, led the creditors’ charge, demanding settlement of a P47 million debt.
African Copper is also heavily indebted to its major shareholder, ZCI Limited, as well as local banks.
At least 500 workers were retrenched after Mowana closed in April, with hundreds more having been axed after Thakadu’s closure.
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