The_Open_Door_deel1

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The financial obligations to the Christie Estate, their interest
in N.I.O.C, and this mining company's general financial
situation may have had an impact on the Government's decision in
respect of the continuation of the management contract with
M.M.A.L., which has previously been discussed. In 1977-1978 the
Mano River mine was on the brink of bankruptcy and among its
creditors were M.M.A.L. and the Christie Estate to whom the Mano
River mine owed $ 4.0 million and $1,9 million respectively as
of December 31, 1977. A cancellation of the management contract
by the Government would have made the debts, at least with
respect to M.M.A.L., immediately claimable and as the company had
already failed to meet the instalment on a major long-term debt
due on December 20, 1976 this might have acted as the final straw
which broke the camel's back. In 1976 relations with the Christie
Estate had reached a very delicate stage indeed with the death of
Christie's main partner and Executor of his Estate, Vernon
Lynn. Apparently, the Christie Family was willing to terminate
its involvement in Liberia (122), especially after the financial
losses of N.I.O.C. in the 197O's which the company had only
overcome with the help of its accumulated earnings and the
unexpected sales of a product (siliceous fines) which had always
been considered as a waste product. The prospect of participation
in the development of the Bea Mountain ore deposits, secured
through N.I.O.C, may well have been the main motive of the
Christie Estate in not giving up the investment.
In 1978, N.I.O.C again failed to meet the instalments on its
long-term debt (of which $ 4«9 million had been due in that year)
and the company suspended debt-servicing. In addition a shortterm
loan of $ 500,000.00 was in arrears as of December 31, 1978.
In fact practically all of the December 31, 1978 liabilities were
current at that date, a total of about $ 15.1 million and the
company was faced with bankruptcy. N.I.O.C's assets showed a
total value of $ 33.1 million as of December 31, 1978 (December
31, 1977; $ 34.4 million) but without a register of fixed assets
and the already mentioned practices with respect to the
depreciation of certain fixed assets the reported value of $ 22.3
million (1977; $ 24.3 million) for the company's fixed assets has
become so inaccurate that it renders the reported total value of
N.I.O.C.'s assets extremely unreliable (123).
From a commercial point of view the prospects of the Mano River
mine do not warrant such a catastrophic situation. The Mano ore,
despite having a high moisture content and being of relatively
low Fe-grade, has fairly good market opportunities. Its special
characteristic, e.g. its relatively high aluminium content makes
it a desirable product for certain steel works in Europe. In
addition, the favourable location of the mine, as compared to
Australian or Indian ore with similar characteristics, places
the Liberian mine in a favourable (competitive) position (124).
Proof of this is the sales contracts which the company's new
sales agent, CAEMI International B.V., has managed to conclude
on behalf of N.I.O.C since August 1972. These remarkable