Pasminco

Pasminco was an Australian mining and metals company established in 1988 through the combination of the lead and zinc operations of Conzinc Riotinto of Australia and North Broken Hill Peko. Its business covered the extraction, processing and smelting of base metals, particularly zinc and lead, with operations and industrial assets in Australia and overseas. The company became one of Australia's significant integrated zinc and lead producers, operating mines, smelters and related transport infrastructure. Pasminco's activities included mining at locations such as Broken Hill, Mount Isa and Rosebery, together with smelting operations in Australia and abroad. Its industrial network also included the Emu Bay Railway, which transported material from the Rosebery zinc mine to Burnie in Tasmania. In May 1998, Pasminco sold the railway to Australian Transport Network, reducing the company's direct involvement in that logistics asset. The company entered a severe financial crisis in 2001. On 19 September 2001, Pasminco was placed into voluntary administration after a combination of depressed commodity prices, substantial debt-servicing costs, the effects of a weak Australian dollar on its currency-hedging position and an inability to obtain suitable additional financial accommodation from its financiers. The administration marked the end of Pasminco as an operating corporate group under its original structure. The subsequent restructuring and asset-sale process extended over several years. In March 2002, Pasminco's Broken Hill mining operations were sold to Perilya. Other assets, including the Mount Isa and Rosebery mines and smelters at Budel in the Netherlands, Clarkesville in the United States, Hobart and Port Pirie, were transferred into a successor entity, Zinifex. Zinifex was subsequently listed on the Australian Securities Exchange in April 2004. Some assets were not transferred to the successor business and were instead closed or wound down, including the Cockle Creek Smelter. The closure of Cockle Creek required a major remediation program. The cleanup was described as the largest site-remediation project in Australia and continued for approximately 11 years. Pasminco's administration and liquidation process remained active after the operating assets had been sold or transferred. In November 2014, administrator Ferrier Hodgson advised creditors that distributions would amount to 22 cents in the dollar. Pasminco therefore ceased to exist as a continuing mining and smelting company, while parts of its former asset base continued under successor owners and operators.

Pasminco was formed in 1988 by merging the lead and zinc businesses of Conzinc Riotinto of Australia and North Broken Hill Peko. The merger created an integrated base-metals company with interests extending from mining through processing and smelting. Its portfolio included Australian mining operations at Broken Hill, Mount Isa and Rosebery, as well as smelting facilities in Australia and overseas. The combination gave Pasminco a broad operating base in the zinc and lead industries rather than a business limited to a single mine or processing stage. One part of the group's infrastructure was the Emu Bay Railway in Tasmania. The railway transported output from the Rosebery zinc mine to the port and industrial facilities at Burnie. Pasminco sold the railway to Australian Transport Network in May 1998. The transaction separated the rail asset from the mining and metals business while the Rosebery operation remained part of Pasminco's wider asset portfolio. Pasminco's financial position deteriorated toward the end of the 1990s and into the early 2000s. The company was exposed to weak commodity prices, which reduced revenue and operating resilience. It also carried significant debt-servicing costs. In addition, movements in the Australian dollar adversely affected its currency-hedging position. The company was unable to secure appropriate financial accommodation from its financiers, and on 19 September 2001 it entered voluntary administration. Administration led to a staged breakup rather than a rapid sale of the entire group to one buyer. In March 2002, the Broken Hill mining operations were sold to Perilya. Other assets were assembled in a successor vehicle that became Zinifex. These assets included the Mount Isa and Rosebery mines and smelters at Budel in the Netherlands, Clarkesville in the United States, Hobart and Port Pirie. Zinifex was listed on the Australian Securities Exchange in April 2004, marking the transition of much of Pasminco's continuing operating platform into a new corporate structure. Not every asset continued in the same form. The Cockle Creek Smelter was closed in September 2003 and its site entered a long remediation program. The cleanup lasted approximately 11 years and was described as Australia's largest site-remediation project. This environmental work became one of the most visible long-term consequences of the company's industrial legacy, although it was part of the winding-down and rehabilitation process rather than a continuing Pasminco operating business. The legal and financial administration continued after the principal operating assets had been sold or transferred. In November 2014, Ferrier Hodgson, acting as administrator, advised creditors that they would receive 22 cents in the dollar. Pasminco consequently became a defunct corporate name, while individual mines, smelters, transport assets and remediation obligations passed to successor owners or separate processes. Its historical significance lies in the scale of the Australian zinc and lead group created in 1988 and in the complex restructuring that followed its 2001 financial collapse.

• 2014

  Administrator announces creditor distribution

  [1]Pasmincoen.wikipedia.org

  Ferrier Hodgson advised creditors that distributions would equal 22 cents in the dollar.

• 2004

  Zinifex successor structure listed

  [1]Pasmincoen.wikipedia.org

  Remaining major Pasminco assets were transferred into Zinifex, which listed on the Australian Securities Exchange in April.

• 2003

  Cockle Creek Smelter closes

  [1]Pasmincoen.wikipedia.org

  The Cockle Creek Smelter was closed and subsequently became the subject of an extensive site-remediation program.

• 2002

  Broken Hill operations sold

  [1]Pasmincoen.wikipedia.org

  The Broken Hill mining operations were sold to Perilya during the administration process.

• 2001

  Voluntary administration begins

  [1]Pasmincoen.wikipedia.org

  Pasminco entered voluntary administration on 19 September amid commodity-price weakness, debt pressure, adverse currency-hedging effects and financing difficulties.

• 1998

  Emu Bay Railway sold

  [1]Pasmincoen.wikipedia.org

  Pasminco sold the Emu Bay Railway, which served the Rosebery zinc mine and connected it with Burnie, to Australian Transport Network.

• 1988

  Pasminco is established

  [1]Pasmincoen.wikipedia.org

  Conzinc Riotinto of Australia and North Broken Hill Peko combined their lead and zinc operations to form Pasminco.

An integrated Australian base-metals producer focused on zinc and lead mining, smelting and associated industrial infrastructure.

• Base metals

  Zinc

  Zinc was Pasminco's central metal and the basis of much of its mining, concentrating and smelting activity. The company operated zinc-producing mines and associated processing facilities, including the Rosebery operation, and maintained an integrated network intended to move mined material through processing and refining stages.

• Base metals

  Lead

  Lead was the other principal metal in Pasminco's portfolio. Its origins lay in the merged lead and zinc operations of the company's founding groups, and its activities included mining, processing and smelting across the wider asset network. Lead-related operations continued under successor ownership after Pasminco's administration.

• Smelter output

  Refined zinc and lead products

  Pasminco's smelters converted mined and concentrated material into refined base-metal output. The group's smelting footprint included facilities at Hobart, Port Pirie, Budel in the Netherlands and Clarkesville in the United States. These assets were later transferred, sold or otherwise dealt with during the restructuring.

• 2004

  Transfer of remaining assets to ZinifexM&A

  Background

  The administration required Pasminco's remaining operating assets to be separated from the failed corporate structure.

  Action taken

  Selected mines and smelters were spun off into Zinifex, which was listed on the Australian Securities Exchange in April 2004.

  Aftermath

  Zinifex became the successor operating vehicle for major parts of Pasminco's former business.

  Source

• 2003

  Closure of Cockle Creek SmelterStrategy

  Background

  Cockle Creek was among the assets that were not retained in the successor operating structure.

  Action taken

  The Cockle Creek Smelter was closed in September 2003.

  Aftermath

  The site underwent an approximately 11-year remediation program described as Australia's largest site-remediation project.

  Source

• 2002

  Sale of Broken Hill mining operationsM&A

  Background

  The Broken Hill assets were part of the operating portfolio being dealt with during Pasminco's administration.

  Action taken

  Pasminco's Broken Hill mining operations were sold to Perilya.

  Aftermath

  The operations continued under new ownership rather than as part of Pasminco.

  Source

• 2001

  Entry into voluntary administrationOther

  Background

  Pasminco faced low commodity prices, high debt-servicing costs, adverse effects from a weak Australian dollar on its currency hedges and difficulty obtaining suitable financing.

  Action taken

  The company entered voluntary administration on 19 September 2001.

  Aftermath

  The corporate group was dismantled through asset sales, transfers to Zinifex, closures and a prolonged creditor-administration process.

  Source

• 1998

  Sale of Emu Bay RailwayM&A

  Background

  The railway carried material from Pasminco's Rosebery zinc mine to Burnie and formed part of the group's logistics infrastructure.

  Action taken

  Pasminco sold the Emu Bay Railway to Australian Transport Network.

  Aftermath

  The railway was separated from Pasminco's mining and metals operations, while the Rosebery mine remained part of the group's portfolio.

  Source

• 2014

  Creditors advised of final distribution[1]Pasmincoen.wikipedia.org

  Bankruptcy · Other

  Administrator Ferrier Hodgson advised creditors that they would receive a distribution equivalent to 22 cents in the dollar as the long-running administration process neared completion.

• 2004

  Former Pasminco assets transferred into Zinifex[1]Pasmincoen.wikipedia.org

  M&A · Other

  Remaining major assets, including selected mines and smelters, were placed into Zinifex, which was listed on the Australian Securities Exchange in April 2004.

• 2002

  Broken Hill operations sold to Perilya[1]Pasmincoen.wikipedia.org

  M&A · Other

  The Broken Hill mining operations were sold to Perilya during the administration and asset-restructuring process.

• 2001

  Pasminco enters voluntary administration[1]Pasmincoen.wikipedia.org

  Bankruptcy · Other

  Pasminco was placed into voluntary administration after low commodity prices, high debt-servicing costs, currency-hedging losses associated with a weak Australian dollar and difficulties securing further financing.

1. 1Pasmincoen.wikipedia.org