PERTH (miningweekly.com) – The board of embattled gold company Mintails on Friday announced the appointment of administrators.
The ASX-listed tailings extractor in October warned that several of the company’s South African subsidiaries had fallen below expectations across all aspects of production, which had continued to adversely affect the company’s output and costs.
Delays in opencut mining, lower recoveries owing to problematic ores, lower ore throughput and increased costs made 2015 a tough year for Mintails, with the company previously saying that the situation was “unlikely to improve in the near term”.
The financially distressed Mintails subsidiaries were placed in business rescue in October, under the South African Companies Act, which allowed proceedings to facilitate the rehabilitation of a company that was financially distressed by providing the temporary supervision of the company, and a moratorium on the rights of claimants against the company, as well as the development and implementation of a restructuring plan.