CopperCo Limited
Case information
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Background information |
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Gary Doran and David Lombe of Deloitte Touché Tohmatsu were appointed as Receivers and Managers of CopperCo Limited and several of its subsidiaries on 6 February 2009. The appointment followed a fall in commodity prices during the Global Financial Crisis. Trading operations were at the Lady Annie Operations site northwest of Mount Isa, Queensland. It comprised two active mining operations and an Electrowinning and Solvent Extraction process to produce high quality copper. About an hour after the Receivers’ appointment on 6 February 2009 it started raining. With more than 340mm falling in the next three days the storm water ponds flooded and contaminated water was released impacting watercourses for a distance of approximately 54km. The Receivers not only had a duty of care under the Environmental Protection Act to prevent a reoccurrence but any buyer of the mine would insist on funds from the sale being set aside to meet remediation. After extensive negotiations with local land holders and stakeholders an innovative treatment strategy was implemented comprising:
Costs exceeding $10m were funded by the secured creditor and then out of the $85m sale proceeds. All shareholder and unsecured creditor enquiries should be directed to the liquidators McGrath Nicol. |
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