The collapse of a WA company has endangered the country’s second garnet mine just as it was ramping up to full production, according to a report in The West Australian yesterday.
The newspaper says that administrators from KordaMentha were appointed to Australian Abrasive Minerals (AAM) on Thursday after a cash shortfall triggered by budget overruns on the development of the Harts Range mine in the Northern Territory.
The project, 170km north-east of Alice Springs, was only commissioned a year ago and had just recently produced its first garnet, which is used in abrasive blasting and waterjet cutting.
It is believed the new project has already absorbed tens of millions in development funds.
Joint administrator Richard Tucker said AAM had been unable to fund the capital expenditure needed to get the mine to nameplate production, according to the newspaper.
The project, which employs about 20 staff on-site, has been put on care and maintenance while the administrators pursue a recapitalisation of AAM.
Harts Range was the first mine developed in the southern half of the NT since the 1980s, says the newspaper.
AAM, which also has a processing plant closer to Alice Springs, had spoken of a mine life exceeding 30 years.
– Courtesy The West Australian