Sperrgebiet Diamond suffers loss of over N$200m
• Mining assets may be on their way to Zim
Lewcor Holdings brought an urgent application to stop SDM from stripping the mine.
"The transfer of Sperrgebiet Diamond Mining’s [SDM] movable assets is an attempt to grab an unfair advantage during the period between the submission of the request for liquidation of SDM and the granting of such an order."
This is what chief operating officer and director of Lewcor Holdings, Thiaan Lewis, said in a statement for an urgent application brought before the Windhoek High Court.
Lewcor is seeking an interim interdict to prevent SDM from removing movable assets from the Elizabeth Bay mine, 30 kilometres south of Lüderitz, and transporting them to Zimbabwe pending the outcome of a liquidation request.
The parties appeared before Judge David Munsu yesterday. The case was adjourned until 9 February for judgment.
"All the facts point to the inescapable conclusion that RZ Murowa Holdings Limited [RZM], as the majority shareholder, intends to completely strip the mine of all its movable assets without any intention of first paying off the mine's debts," Lewis claimed.
He argued that the removal of the assets will harm Lewcor, which is a creditor of SDM.
As of May 2023, SDM allegedly had creditor claims amounting to N$122 million.
“SDM and RZM are trying to completely hollow out the mine, devalue it and make it almost impossible to resume mining operations. If all the assets are removed, the mine will offer no value to a potential buyer."
‘Nothing sinister’
In SDM's answering statement, acting CEO Abraham Grobler admitted that they sold movable assets to private Zimbabwean private company, RZM, but claimed that the first sale transaction already took place in June 2023.
Lewcor only launched the request for the liquidation on 14 December 2023.
"We admit that we are keen to transport the goods to Zimbabwe because we have a contractual obligation to do so. There is nothing sinister about that," he said.
Grobler added that Lewis' claim that SDM wants to "hollow out" the mine borders on "absurdity". He said a mine's value is determined by more than just the assets and this includes, among other things, mining licences, which can have a value of a significant amount.
He also denied Lewis' claims that SDM plans to drive away all movable assets. He argued that these are "surplus assets" - assets that are redundant, obsolete or used items that are no longer needed by SDM.
“The goods were sold as part of SDM's revised strategy to operate the mine more profitably. SDM has no intentions of resuming operations as they were previously managed and those assets are not essential to the intended downsizing," Grobler said.
SDM also denied that it is insolvent.
Million-dollar loss
SDM currently manages and owns the Elizabeth Bay mine where mining operations first started in 1911.
Operations have started and stopped over the years.
In 2020, Lewcor acquired the mine’s assets and in 2023, RZM acquired Lewcor's majority shareholding in SDM.
Mining operations resumed in September 2022, but had to be stopped again in March last year.
“Although the total material mined for this period was about 692 000 tonnes, this was only 58% of the target. The carats produced were 83% below the target of 96 618 carats and there was an operating loss of approximately N$205 million for this period," court documents read.
NamPower also cut the power supply to the mine in May 2023 due to non-payment.
– [email protected]
This is what chief operating officer and director of Lewcor Holdings, Thiaan Lewis, said in a statement for an urgent application brought before the Windhoek High Court.
Lewcor is seeking an interim interdict to prevent SDM from removing movable assets from the Elizabeth Bay mine, 30 kilometres south of Lüderitz, and transporting them to Zimbabwe pending the outcome of a liquidation request.
The parties appeared before Judge David Munsu yesterday. The case was adjourned until 9 February for judgment.
"All the facts point to the inescapable conclusion that RZ Murowa Holdings Limited [RZM], as the majority shareholder, intends to completely strip the mine of all its movable assets without any intention of first paying off the mine's debts," Lewis claimed.
He argued that the removal of the assets will harm Lewcor, which is a creditor of SDM.
As of May 2023, SDM allegedly had creditor claims amounting to N$122 million.
“SDM and RZM are trying to completely hollow out the mine, devalue it and make it almost impossible to resume mining operations. If all the assets are removed, the mine will offer no value to a potential buyer."
‘Nothing sinister’
In SDM's answering statement, acting CEO Abraham Grobler admitted that they sold movable assets to private Zimbabwean private company, RZM, but claimed that the first sale transaction already took place in June 2023.
Lewcor only launched the request for the liquidation on 14 December 2023.
"We admit that we are keen to transport the goods to Zimbabwe because we have a contractual obligation to do so. There is nothing sinister about that," he said.
Grobler added that Lewis' claim that SDM wants to "hollow out" the mine borders on "absurdity". He said a mine's value is determined by more than just the assets and this includes, among other things, mining licences, which can have a value of a significant amount.
He also denied Lewis' claims that SDM plans to drive away all movable assets. He argued that these are "surplus assets" - assets that are redundant, obsolete or used items that are no longer needed by SDM.
“The goods were sold as part of SDM's revised strategy to operate the mine more profitably. SDM has no intentions of resuming operations as they were previously managed and those assets are not essential to the intended downsizing," Grobler said.
SDM also denied that it is insolvent.
Million-dollar loss
SDM currently manages and owns the Elizabeth Bay mine where mining operations first started in 1911.
Operations have started and stopped over the years.
In 2020, Lewcor acquired the mine’s assets and in 2023, RZM acquired Lewcor's majority shareholding in SDM.
Mining operations resumed in September 2022, but had to be stopped again in March last year.
“Although the total material mined for this period was about 692 000 tonnes, this was only 58% of the target. The carats produced were 83% below the target of 96 618 carats and there was an operating loss of approximately N$205 million for this period," court documents read.
NamPower also cut the power supply to the mine in May 2023 due to non-payment.
– [email protected]
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