South Crofty Mine, a historic Cornish tin mine, has entered administration, with Wilkins Kennedy appointed to the case.
David Tann, John Kirkpatrick and Keith Stevens were appointed as joint administrators on 26 June 2013.
The decision to appoint the administrators was taken by Western United Mines Limited, the owner of South Crofty Mine, to safeguard the mine’s assets while it seeks alternative investment.
Wilkins Kennedy’s appointment follows Celeste Mining Corporation’s recent failure to fund the mine in accordance with its contractual agreement with Western United Mines Limited.
Celeste Mining Corporation is the parent company of Western Union Mines Limited and South Crofty Mine.
Celeste was served with a default notice on June 5 2013 for failing to meet its obligations, but has still not made any payments in line with its agreement.
South Crofty Mine has been home to mining activity since 1592 – Western Union Mines purchased the mine in November 2007.
South Crofty Mine has recently faced several challenges to its operations, which made it difficult for the mine to attract the investment it required.
These include UNESCO’s objections to mining operations taking place in the Cornwall and West Devon Mining Landscape, which is designated as a World Heritage Site.
Alan Shoesmith, CEO of Western United Mines, said: “The path towards production has been far from easy. I don’t think any of us who have been working at South Crofty since 2001 could possibly have imagined the huge obstacles we would have to overcome.
“Regardless of what has happened, however, the fact remains that, as evidenced by the results of all the exploration we’ve been doing, the mine remains an extremely attractive investment.”