JSE-listed Mantengu Mining has announced that its subsidiary Meerust Chrome has regained full operational control over the chrome mining and processing environment on the Goudini farm in the North West province.

The company, which is involved in chrome ore extraction and processing, has recently resumed operations, with the first deliveries of chrome concentrate already under way.

Meerust Chrome said on August 22 that it was also in the process of hiring affected employees to ensure continued job creation.

These developments come as part of a broader business rescue process concerning Birca Copper and Metal (BCM), with Mantengu Mining saying its original investment and shareholder value have been fully restored.

However, to safeguard the integrity of the business rescue process, Mantengu is exploring legal options that will not impede ongoing efforts.

The business rescue process, led by independent business rescue practitioner (BRP) Thomas Samons, was initiated after New Venture Mining Investment Holdings (NVMIH) cancelled the mining right and contractorship agreements with BCM on August 2.

This led to BCM being placed under business rescue on August 7. The BRP held the first creditor meeting on August 19 and conducted a site visit to the chrome wash plant on August 20.

The BRP is currently engaging with creditors and assessing their claims, with Mantengu and BCM fully supporting the process.

On August 8, it was announced that Meerust Chrome had entered into a transfer of mining right agreement with NVMIH, dated August 6. This agreement allows Meerust Chrome to mine and process chrome ore until the mining right is officially transferred from NVMIH to Meerust Chrome.

Simultaneously, Meerust Chrome also entered into a sale and contractorship agreement with NVMIH.

Prior to these agreements, on May 13, BCM had entered into a deed of sale and lease to acquire a portion of the Goudini farm from the Wandre Familie Trust, where the chrome wash plant is located. However, with the cancellation of the NVMIH agreements, the Wandre Familie Trust also cancelled this deed of sale.

In response, Meerust Chrome secured a new lease agreement with the Wandre Familie Trust on August 5, allowing it to lease the mining area on Goudini farm for nearly ten years, until August 4, 2033.

Additionally, Meerust Chrome entered into a lease agreement with BCM for the chrome wash plant for the same duration.

These agreements have enabled Meerust Chrome to legally and commercially operate under the mining right, allowing the company to upgrade and manage the wash plant on Goudini farm, ensuring the continuity of operations and contributing to the stabilisation of the business.