PERTH (miningweekly.com) – ASX-listed project house Watpac has given fellow-listed Pluton Resources two months in which to pay its debts, after the miner retired its receivers and managers.
The Pluton administrators ordered Watpac in November last year to limit the scope of work being undertaken at the Cockatoo Island operations, after the mining services contract was suspended following Chinese creditor Rizhao Port Group's decision to appoint receivers and managers to Pluton.
Pluton subsequently reached an agreement with Rizhao on a revised payment regime to satisfy the debt owed to the Chinese firm. The company also ordered a shipment of ore to its security holder General Nice Resources Commercial Offshore De Macaw Limitada (GNR).
The ASX-listed miner this week said GNR had retired the receivers and managers, with focus now shifting to reducing costs and improving mine planning.
“We still have a number of challenges facing Pluton, not the least of which is a declining iron-ore price. However, Pluton is fortunate to have a high-grade, low-cost operation at Cockatoo Island that is capable of operating profitably even in this market,” Pluton chairperson Paul D’Sylva said this week.
Watpac on Tuesday said that while the company had substantial entitlement owing from Pluton, from when the company entered into receivership, Watpac had agreed not to enforce any action to recover any amounts owing, for a period of up to two months.
During that time, the company would work with Pluton and GNR on a suitable agreement on the terms on which the outstanding debt could be paid.
In the meantime, Watpac would retain its 5% shareholding in Pluton.
“As a substantial shareholder, we remain committed to working closely with Pluton and its management team, as it looks to create a long-term sustainable operating model at Cockatoo Island and future value for all shareholders,” Watpac MD Martin Monro said.