Trans Hex to Liquidate Struggling Mining Unit

RAPAPORT... South Africa-based diamond miner Trans Hex has been forcedto liquidate its failing West Coast Resources (WCR) subsidiary after apotential sale of the business fell through. Takeover negotiations with Kernel Resources have terminated,leaving Trans Hex unable to run the unit, the miner reported last week. As aresult, "WCR is not in a position to meet its working capital requirementswithout the necessary funding being made available," Trans Hex said. WCR, which operates the Namaqualand mine, has struggled inthe weak market, with rough prices declining 27% in recent months, and mining gradesfalling to unexpectedly low levels, Trans Hex explained. Kernel began negotiations with Trans Hex in May with a viewto buying 70% of Namaqualand, which is located close to the west coast of SouthAfrica. Kernel also bought Trans Hex's Lower Orange River operations in April2018. The liquidation is the latest in a string of difficultiesfor Trans Hex. Llewellyn Delport, the company's CEO since 2004, stepped down inAugust following continued operating losses that also forced the miner to issuea warning about its ability to stay in business. Image: The Namaqualand mine. (West Coast Resources)