Monday, September 21, 2020

BCL Liquidator in talks with two potential buyers

By Kabelo Seitshiro

Liquidator of BCL Group, Nigel Dixon-Warren, is engaged in talks with two potential buyers of the mine to re-commence operations.

Although he has not denied that such talks are taking place Dixon-Warren has remained tight-lipped on the disclosure of the names of the potential buyers of the mine.

“I cannot share that information with you before I even present to my client which is the Ministry of Minerals authorities,” he said.

Information contained in the end 2018 10th status report to creditors of BCL and Tati Nickel Mining Company is that the BCL and Tati mines have not reached their “end of life of mine”.

Both have sufficient known resources for future operations to resume for another eight to twelve years. The mines have potentially significant value in terms of resources and infrastructure

The report stated that engagements are very early stage with both parties currently assessing the information available with a view to developing their financial models to determine whether the mines represent a commercial opportunity.

“Three further parties have also expressed an interest and the Liquidator has commenced preliminary discussions with them,” reads the report.

Further stated is that the Liquidator is prioritising negotiations with the identified interested parties who intend to re-commence operations to determine whether substantive progress can be made in the next three to six months.

He added that one of the key challenges for BCL and to a lesser extent Tati is the quality of the information available about the assets that will allow for ready disposal or even generation of interest by third parties.

The report stated that some work has been undertaken as part of the disposal process for Tati that was undertaken last year with testing results for one of the key resources being finalised and now being available. However, the information on the mineral resources for BCL remains inadequate. Added in the report is that it was proposed that a drilling programme be undertaken to improve the knowledge of the mineral resources but due to limitation of funds this has not been possible.

“The limitation of the knowledge of the mineral resources is a major hindrance to any potential disposal. The value of most of the infrastructure at BCL is dependent on access to the resources continuing,” reads the report.

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