River Ranch Mine applies for liquidation

Rani Investment, which owns the mine through Limpopo Mineral Resources, said ZMDC had not made an offer for its stake in the company.

Rani indicated last year that it was selling the diamond producer after failing to raise capital to recapitalise the mine.

Negotiations between the two parties started early this year.

In a statement, Rani Investment chief executive officer Mr Salim Bitar said the company had applied for liquidation as it could no longer sustain itself as a going concern and mainly wanted to focus on its core business of hospitality and tourism in the country.

“Limpopo Mineral Resources Limited, formerly River Ranch Limited, has filed for a provisional order at the High Court requesting the winding up of its operations and the appointment of a provisional liquidator.

“If ZMDC wished to acquire the mine, it could continue negotiations with the court-appointed liquidator”, said Mr Bitar.

The major shareholder has been subsidising the running of the mine while negotiating the sale of its shares first with Limpopo’s minority shareholder, Khupukile Resources, which it had given the first option to purchase them, and then with the ZMDC.

The Government is consolidating the country’s mining activities through the indigenisation and empowerment policy and Rani had said it believed the Government would develop and expand the mine’s operations.