JOHANNESBURG (miningweekly.com) – South African miner Impala Platinum (Implats) has initiated court proceedings against a US recycler for $182-million, Implats CFO Brenda Berlin said on Thursday.
The US company A-1 Specialised Services & Supplies Inc has been one of the world’s leading recyclers of autocatalyst materials through its long-standing association with Impala Refining Services.
In 2012, the JSE-listed Implats took an impairment of R212-million against amounts allegedly owed by A-1.
However, since then, A-1 has ceased deliveries of all material.
It has also defaulted on the payment terms agreed in the last financial year and its refining contract lapsed on June 30.
Berlin said at the presentation of Implats results on Thursday that Implats had decided to impair the full remaining carrying value in the accounts of R1.2-billion.
“The filings have been made,” Implats CEO Terence Goodlace confirmed to Mining Weekly Online.
A-1 describes itself on its website as a global leader in the recycling of platinum-group metals from salvage catalytic converters, and an active marketer of platinum, palladium and rhodium to meet consumer needs.
The company, which has been supplying materials to Implats since the nineties, went into default after the global economic crash of 2008.
The date for a formal response in a court in Pennsylvania has been set down as September 10.
The supply of the platinum from recycled automotive converters represents a significant portion of new metal each year.
The profit variance in the impairment charge of R928-million is mainly owing to the full impairment of the carrying value of loans and fees owing of R1.2-billion.
“We have initiated court proceedings in the United States for the full amount owing of $182-million. But due to the unknown financial strength of the customer, it was decided to impair the full remaining carrying value in the accounts of R1.2-billion,” Berlin said.
Goodlace told BNP Paribas Cadiz Securities mining analyst Nic Dinham that he did not expect the global recycling market to be impacted.