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Embattled manganese miner OM Holdings (OMH) has called in administrators for its subsidiary OM Manganese (OMM), which manages the Bootu Creek project, in the Northern Territory. Operations at Bootu Creek were suspended in December last year as a direct result of the ongoing and material fall in the manganese price. OMH said this week that since that time, significant efforts had been made to improve efficiencies, reduce costs and restructure liabilities at the mine to enable OMM to continue trading through a sustained commodities downturn. However, despite the company’s best efforts and a marked reduction in operating costs at Bootu Creek, a decision was taken that the project could not continue to operate sustainably in the current market. The directors of OMM have also determined that the financial position of the subsidiary had been so adversely affected by the decline in demand for manganese, and the market outlook, that the company required a formal restructuring. With the appointment of an administrator, it was envisaged that OMM would be restructured with a view to restart trading when the market for manganese improved. 

 

(Sources:miningweekly)