- A syndic will be appointed
- 350 unemployed workers to be compensated
- Pending the rehabilitation and restoration of the mine
Trevali, the parent company of the Perkoa zinc mine, has announced that it has “submitted an application for liquidation to the Commercial Court of Burkina Faso “. The information was made public in a press release dated 6 October 2022. This liquidation concerns the 90% of shares held by Trevali in the capital of the Natou Mining mine located in Perkoa.
“A liquidator is expected to be appointed by the Court in the next few days, and this liquidator will assume responsibility for the management of the affairs of Nantou Mining. Upon appointment, the liquidator will perform or exercise, as the case may be, all acts, rights and obligations of Nantou Mining, and will be required to perform all acts necessary to preserve the rights of Nantou Mining against its debitors and creditors,” Trevali said in its statement.
A source at the Commercial Court confirms this information. It states that the mine’s lawyers have indeed begun the process and a syndic will be appointed who will have the task of realising the assets and discharging the liabilities under the supervision of the jurisdiction. This act, which can be described as “filing for bankruptcy”, is a serious threat to the mine.
Judicial liquidation occurs when a company encounters difficulties in meeting its debts without any possibility of bouncing back.
Natou Mining mine has been in a very bad situation since the flood on 16 April 2022. After incurring expenses for pumping out the water in order to restore the 8 miners’ yards, the company is facing a huge need for funding to restart operations. But for Trevali: “the continuing geopolitical uncertainty in Burkina Faso, including the coup d’état on 30 September 2022, has prevented Nantou Mining from restarting operations at the Perkoa mine at that time, or from effectively continuing its activities or meeting its obligations as they fall due”.
Pending liquidation, the mine will proceed with the dismissal and payment of the duties of approximately 350 employees. It promises to restore the environment by carrying out rehabilitation and reclamation work with resources paid into the fund set aside for this purpose.
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