Aveng terminates Moolmans disposal talks amid Tshipi contract disputes

AVENG'S mining contracting unit Moolmans' disputes on the Tshipi manganese mining project have resulted in talks for the disposal of Moolmans to be terminated.

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The decision to dispose of Moolmans was taken some two years ago, and in the six months to December 31, the JSE-listed group's board also investigated a range of options for the separation of the group's Australasian civil engineering and construction business McConnell Dowell the decision on this was that it should remain within Aveng.

Aveng CFO Adrian Macartney said in an interview on Wednesday that the Tshipi contract the mine is 60% owned by Exxaro - is not sustainable in its current format, and management are considering all options to bring this to resolution. "To put it quite simply, we can't continue to fund this project for them," he said.

Renewed efforts had been made to seek a commercial settlement, whilst formal claims processes continued.

The commercial disputes on the Tshipi contract, and the uncertainty created, had negatively impacted the ability to conclude a disposal transaction for Moolmans.

As a result, negotiations had been terminated. Macartney said the disposal was partly aimed to satisfy the BEE-ownership aspect at Moolmans, and the party with whom they had been negotiating over the past year had been disappointed about the talks ending, said Macartney.