JOHANNESBURG (miningweekly.com) – JSE-listed Pan African Resources’ wholly-owned Phoenix Platinum Mining subsidiary will work closely with the business rescue practitioner for International Ferro Metals’ South African subsidiary to ensure that Phoenix’s interests are safeguarded.
London-listed IFM on Wednesday announced that its IFM SA subsidiary, which operates the Lesedi underground mine and ferrochrome-smelting operations, had entered into business rescue, owing to deteriorating business conditions, including unsustainably low ferrochrome prices, rising costs, including labour and electricity costs, and interruptions in power supply and the resultant production losses.
Phoenix is situated on the IFM SA property and obtains about 20% of its feedstock from tailings arising from IFM SA’s processing activities. It also sources electricity, water and certain other services from IFM SA.
Pan African stressed on Thursday that Phoenix was not solely reliant on material from IFM SA.
“At this stage, Phoenix is not in a position to fully assess the impact of the business rescue proceedings on its operations,” it added.