Controversial mining company enters business rescue

The controversial Australian-owned company mining heavy minerals on beaches near Lutzville on the West Coast, has hit major operational and financial problems, and has appointed business rescue practitioners to help it pay creditors and stave off bankruptcy, reports GroundUp. Mineral Sands Resources (MSR) owns the Tormin mine where production problems started last year. Workers at the company have been told that they will not receive their August salaries. MSR is 50% owned by Australian parent company Mineral Commodities Ltd (MRC) that has also run into financial difficulties and has voluntarily stopped trading on the Australian stock exchange. Late last year, the two companies withdrew long-running defamation cases against a group of SA environmental lawyers, community activists and a social worker. However, the executive chairperson of MRC, Mark Caruso, who had by then been ousted, has not withdrawn his personal damages claims against three of them. In a sworn statement, MSR director Russell Tipper, who is also a non-executive director of MRC, said he and his director colleagues had resolved to place the local company in business rescue as it was ‘financially distressed’ as a result of its 100% ownership of Tormin. Johannesburg-based business restructuring firm Engaged Business Turnaround has been appointed to manage the business rescue.

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