https://www.miningweekly.com

Arrium recap and sales process to be completed by year-end

Arrium's mining consumables business incorporates Moly-Cop, which will be put up for sale.

Arrium's mining consumables business incorporates Moly-Cop, which will be put up for sale.

23rd May 2016

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

  

Font size: - +

JOHANNESBURG (miningweekly.com) – The recapitalisation and sale of collapsed Australian mining and steel group Arrium’s assets would be largely completed by the end of the year, the company’s administrator reported on Monday.

The recapitalisation and sales process would start in July and was expected to attract “genuine interest” from local and international businesses.

Arrium’s main assets include the steelworks, port and mining operations at Whyalla; its mining supplies unit Moly-Cop, which is the largest manufacturer and supplier of grinding media to mining operations globally; and OneSteel Manufacturing and Distribution, which is a steel products supplier.

Administrator KordaMentha Restructuring stated that a global investment bank would be appointed shortly to advise on the sale of Moly-Cop, which was Arrium’s most profitable business.

Arrium bought Moly-Cop in 2010 from global diversified major Anglo American and last year tried to sell the business. The board cancelled the sales process after offers were not considered high enough.

KordaMentha said it had started preparing the necessary materials that interested parties would require to conduct due diligence studies. These included an information memorandum, audited financial statements for 2016, budgets for 2017 and a comprehensive data room with relevant up-to-date information.

The administrator reported that some organisations had already contacted KordaMentha to register their interest in Arrium's businesses.

Arrium entered into voluntary administration in April, after lenders rejected a $927-million recapitalisation plan.

The South Australian government has established a steel task force to identify opportunities for restructuring and co-investment to secure the long-term future of the Whyalla steel operation.

Analysis by Flinders University shows that South Australia will lose about A$750-million and 5 000 jobs if the Whyalla operation is closed.

Edited by Creamer Media Reporter

Comments

Showroom

Showroom image
Alcohol Breathalysers

Supplier & Distributor of the Widest Range of Accurate & Easy-to-Use Alcohol Breathalysers

VISIT SHOWROOM 
Willard
Willard

Rooted in the hearts of South Africans, combining technology and a quest for perfection to bring you a battery of peerless standing. Willard...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.105 0.14s - 88pq - 2rq
Subscribe Now