The board of iron ore miner Pluton Resources has regained control of the company after its major shareholder, General Nice Resources, retired KordaMentha as receivers yesterday.
The board of iron ore miner Pluton Resources has regained control of the company after its major shareholder, General Nice Resources, retired KordaMentha as receivers yesterday.
Pluton chairman Paul D'Sylva said that, with the backing of General Nice, a focus on reducing costs and improving mine planning, and the continued support of major trade suppliers, the company was in a position to return the company to good standing.
“We still have a number of challenges facing Pluton, not the least of which is a declining iron ore price,” Mr D’Sylva said.
“However, Pluton is fortunate to have a high-grade, low-cost mining operation at Cockatoo Island that is capable of operating profitably even in this market.”
The board’s immediate focus will be to update its financial reports and hold an annual general meeting, both of which were delayed due to the appointment of receivers.
Watpac Civil & Mining, which has provided mining services for Pluton since November 2013 and has retained a 5 per cent shareholding in the company while it was in receivership, said it was pleased Pluton had the opportunity to once again commence normal operations at the Cockatoo Island iron ore project.
The company has also agreed to not enforce any action to recover an outstanding $19 million owed to it for work at Cockatoo Island for a two-month period.
“Watpac will work closely with Pluton management and representatives from General Nice over this time in negotiating a suitable agreement for how and under what terms the outstanding pre-receivership debts can be repaid,” the company said.
Watpac said it had no reliance on the recovery of any pre-receivership entitlement in its June 30 financial year profit forecasts.
Managing director Martin Monro said the Cockatoo Island project off the coast of Derby was an important contract for Watpac.
“Throughout the receivership period we have continued to support Pluton, both financially and through the provision of continuous limited scope mining services,” he said.
“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 of its stakeholders.”
Watpac shares were 0.6 per cent higher at 78 cents per share at 10:30am.
