Mineral Commodities’ (ASX:MRC) flagship mineral sands project in South Africa, Tormin, is being shut down.
The culprit?: an oil spill offshore the beach the company mines zirconium sands and other heavy minerals. That same oil slick has contaminated significant parts of the company’s mineral resource.
Damage to roads was also cited as a reason behind the defunding of the project, still usable at present, but reportedly at risk of further degradation in future heavy rain events.
That the oil slick contaminated MRC’s beachfront at Tormin was a dual result of recent heavy rains in the region which also caused flooding. Coupled with an oil spill and flood damage, MRC has had to throw in the towel at the not entirely uncontroversial project.
Mineral Commodities was considering selling its Tormin assets off to GMA Group earlier this year given the company’s ore can be used to produce garnet, a metal used in waterjet cutters with a curiously opaque pricing market and supply chain.
Perhaps it should have done so – because months later, the company is left with an oil polluted beachfront and not enough cash to keep it going.
Back in May, the company was already thinking about pivoting to its graphite project in southwest WA – but not set for production until the 2040’s according to one previous plan for the mine.
MRC last traded at 2.6cps.