The parent company of Perth business Arccon has been placed into administration, just six days after veteran engineer Robert Wilde was elected as chairman.
Allmine Group announced late yesterday that David Hurt and Kim Strickland of WA Insolvency Solutions had been appointed as joint and several administrators.
It also announced that Paul Kreppold had resigned as managing director.
Allmine Group’s shares have been suspended since 23 May when the company said it was conducting a strategic and financial review into its “financial position and performance against its earnings guidance”.
That announcement came just three weeks after the appointment of Mr Kreppold as chief executive and the relocation of the corporate head office from Melbourne to Perth.
Mr Kreppold, who worked for the FAST joint venture before spending two years at Allmine as a general manager, was employed as chief executive on a base salary of $500,000 plus superannuation.
At the time of his appointment, the company said it had completed the integration of several acquisitions into its ‘life of mine’ operating model.
Allmine Group comprised engineering business Arccon, which was acquired in 2011, plus construction services business Construction Industries Australia and plant maintenance business Allmine Maintenance.
Arccon was established by Mr Wilde, who had previously built Minproc into one of WA’s most successful engineering companies.
Arccon partnered with China Non Ferrous Metal Industry’s Foreign Engineering and Construction Co (NFC) to bid for work on major resources projects.
Just three weeks ago, it announced an ambitious engineering and financing MOU with Rex Minerals and NFC over a copper project in South Australia.
In February, TNG appointed Arccon to complete a definite feasibility study for its Mt Peake vanadium project in the Northern Territory.
Arccon had also undertaken studies for Marengo Mining, Rum Jungle Resources and Poseidon Nickel.
In its most recent results for the half-year to December 2012, Allmine reported revenue of $65 million and net profit of $1.5 million.
It said this was $4 million below plan, and attributed the weak outcome to reduced activity, especially in the iron ore sector, and to demobilisation expenses.
