David Tann, John Kirkpatrick and Keith Stevens, partners at Wilkins Kennedy, have been appointed as administrators of South Crofty Mine, a centuries-old Cornish tin mine which has a troubled recent history.
Mining activities at South Crofty Mine date back to 1592. The mine was bought by Western United Mines Ltd (WUM) in 2007, having been closed in 1998 after a period of decline. In May 2011 Canadian stakeholder Celeste Mining Corporation signed an earn-in agreement with WUM.
However, Celeste was served with a default notice on 5 June 2013 after failing to make payments in accordance with its contractual agreement. The company is believed to have pulled its investment because of higher than anticipated costs and other concerns
There have been several challenges to operations at South Crofty which have made it difficult to attract investment. These include UNESCO's objections to mining operations taking place in the area designated as the Cornwall and West Devon Mining Landscape, which is protected as a World Heritage Site.
WUM says it took the decision to appoint the administrators to safeguard the mine's assets while seeking alternative investment. The company says it believes there is still the possibility of extracting between 8m and 16m tonnes of tin ore from the facility.