An underground mining operation became unable to meet its financial obligations, following multiple workplace deaths and high-profile departures.
Trevali Mining Corporation confirmed its Nantou Mining subsidiary recently filed an application for liquidation.
“Nantou Mining’s liquidity position has deteriorated significantly in the months following the flooding event that occurred at its Perkoa mine on April 16, 2022,” the parent company said in a public statement.
“This, together with the substantial funding requirements to carry out a restart of operations, and the continued geopolitical uncertainty in Burkina Faso – including the coup d’état carried out on September 30, 2022 – has resulted in Nantou Mining being unable to restart operations at the Perkoa mine at this time or to effectively carry on its business or meet its obligations as they become due.”
Hundreds of affected mine workers have already been retrenched.
“Employees dedicated to environmental compliance and general maintenance activities at the mine site will continue, while the majority of the approximate 350-person workforce was terminated and paid severance entitlements,” Trevali said.
The proponent has appointed FTI Consulting to monitor Nantou and was still appointing a liquidator at the time of publication.
“Upon appointment the liquidator will carry out or exercise, as applicable, all acts, rights and obligations of Nantou Mining – and will be required to perform all acts necessary for the preservation of Nantou Mining’s rights against its debtors and creditors,” a spokesperson said.
The remarks came months after a Byrnecut Group manager and mine manager were found guilty of involuntary manslaughter at Nantou’s Perkoa mine, 120km west of Ouagadougou.
A Burkina Faso court heard torrential rainfall and flash-flooding fatally drowned eight underground mine workers during the country’s dry season back in April 2022.
Rescue workers initially thought some missing employees could have survived in a refuge chamber about 570 metres beneath the surface. However, they discovered the area was empty one month later. The recovery effort took more than 66 days to completely remove the last of the bodies in June.
Grieving loved ones accused the employers of involuntary homicide, endangering lives and failing to help those in danger.
Nantou earlier confirmed the Perkoa mine manager was handed a 24-month suspended sentence, while the Byrnecut manager received a 12-month suspended sentence.
Dan Isserow, Derek du Preez and Ricus Grimbeek have also resigned as director, chief operating officer and president and CEO respectively. Preez will stay at the company until October 14 to support a “transition of operational, technical and other aspects”.
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