Artice on Namco
Leviev likely to take bulk of Namco assets
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LL Mining Corporation has emerged as the preferred negotiator
for the bulk of the liquidated assets of Namibian Minerals
Corporation (Namco). LL Mining Corporation, a company
belonging to Israeli businessman Lev Leviev, was Namco’s
major shareholder, coming on board and pumping significant
funds into the company after several of its Southern African
subsidiaries were placed in provisional liquidation for the first
time in late February 2001.
Now Leviev is negotiating to purchase the 250 m3/hour
NamSSol mining tool and 50 t an hour processing plant on
board MV Kovambo; the Namdrill reverse circulation rotary drill, a
16 inch airlift and a six metre vibrocorer aboard MV Zacharias
and Namco’s wholly-owned mining vessel Namibian Gem,
which has one 400 mm and one 500 mm diameter airlift pipe.
Negotiations are apparently underway to reach agreement with
the owners of the chartered MV Kovambo and MV Zacharias.
Stephen Gore says his company, Sanek Trust, one of the
liquidators of Namco’s South African operations and KPMG, the
liquidator of the Namco UK subsidiaries hope to wrap up the
sale within the next few weeks.
Rival marine diamond mining company De Beers Marine
Namibia has bought the first of Namco’s assets, the NamSSol 2
seabed crawler, which is aboard the chartered mining vessel Ya
Toivo.
The Nam 2, which De Beers Marine Namibia bought for
$20-million, can pump an average of 450 m3 an hour of
diamondiferous material to Ya Toivo’s DMS plant, which is
designed to process 100 t an hour.
"The main transaction was concluded in the UK by KPMG, as the
equipment on board the MV Ya Toivo belonged to a Namco
company in the UK" says Gore.
"Certain spares and equipment, which were assets of Namco
Holdings SA and held in stock by the SA liquidators were sold to
De Beers Marine Namibia for $1-million.
"They realised greater value and were sold for considerably
more than if we had auctioned them, because they are required
for use by the specific equipment on board the Ya Toivo," says
Gore.
The Ya Toivo is due to arrive in Cape Town from Luderitz in a
matter of days for maintenance and recommissioning.
The mining vessel is expected to be deployed in Namdeb’s 6
000 km2 Atlantic 1 licence area by August, 2003, where it will
initially employ the seabed crawler technology.
De Beers Marine Namibia has entered into a new three-year
renewable charter contract with the owners of Ya Toivo.
The sale of the remainder of Namco’s assets will see the end of
a company, which has had a roller coaster ride in the marine
diamond mining business.
In January 2001 its NamSSol remotely controlled seabed
crawler was damaged during operations and this led to several
of the company’s Southern African subsidiaries being placed in
provisional liquidation in late February 2001.
In March 2001, the company managed to reach accord with its
senior lenders and was able to raise $27-million in financing,
including a $15-million subscription from LL Mining Corporation.
In December last year, however, with about $75-million in debt,
Namco was unsuccessful in concluding negotiations with its
bankers, as well as with LL Mining Corporation, to advance
additional funding to the group.
Certain of the group's subsidiaries ceased operations on
December 5, 2002.
Four of the Namco subsidiaries in South Africa were placed in
liquidation and certain Namco companies registered in Namibia
and UK were also put into liquidation.
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