H M Project Developments Ltd (05867765): administration
- Status
- Administration ended
- Administration began
- 2020-04-30
- Administrators
- Benjamin John Wiles
- Administrators' firm
- Kroll
- Formerly
- H M Project Development Ltd; Weightco 2006 (8) Limited
- Incorporated
- 2006-07-05
- Location
- London
- Industry
- 09900 Support activities for other mining and quarrying
Why it went into administration
- Property / lease costs
- Management failings / irregularities
- Regulatory change or action
From the administrators' statement
The Company’s mining licence expired in August 2019. The reason for the licence not being renewed was due to the Company not submitting certain documentation to NCC, and therefore the planning application for Phase 2 was not approved. Accordingly, the Company’s mining operations ceased at this time, meaning that it was wholly reliant on ExWorks to provide funding for its day to day cash requirements.
In addition to this, the Company had sold its coal to a single customer. Until September 2019 the Company sold the coal at £60 per tonne, with the customer paying a premium price in return for a local regular supply of coal. However, in September 2019, the customer demanded a lower price in line with market rates. This reduction meant that the Company lost significant margin and it became uneconomical to continue mining the Halton Lea Gate site. .
Recommencement of mining is dependent on obtaining a new mining licences and further planning permissions. In addition, further working capital funding is required for any further mining. Based on the above coal price and the quantities of unmined coal, further mining is:not economically viable. However, the Joint Administrators are exploring alternative strategies for the sale of the further coal that could be mined. As noted above, the feasibility of any further mining activity is dependent on funding, planning permissions, mining licences and the viability of alternative sectors to sell the coal into.
Administrators' statement of proposals (2020-07-04) · Companies House register