Judge approves $10 million sale of Mineral Park Mine
New owner declared free of most financial obligations despite $15 million in back taxes owed
By ZACHARY MATSON TODAY’S NEWS-HERALD | Updated 4 months ago
A $10 million sale of the bankrupt Mineral Park Mine north of Kingman was approved by a federal judge on Tuesday afternoon.
The buyer of the mine, Origin Mining Company, will take control of the property and responsibility for about $3.5 million in environmental obligations. The new owner, however, is considered “free and clear of all liens, claims and interests,” on the property.
Among the liens against Mineral Park Mine, Mohave County has claimed it is owed more than $15 million in back taxes – about 80 percent of which would go to secondary taxing districts like Mohave Community College and the fire and school districts near the mine.
The mine, which filed for bankruptcy in August, ceased mining operations and laid off 383 workers on Dec. 29, citing the lack of a prospective buyer and “unforeseeable” declines in mineral prices. The mine transitioned to “care and maintenance,” so that it can still be reopened while it found an interested buyer.
County officials on Tuesday were conferring with lawyers, including a bankruptcy attorney based in Delaware, about what the next steps would be in continuing to press for the tax payments.
In recent court filings, the county has argued that state law gives the property taxes priority over other financial claims against Mineral Park. But the mine has contested the validity of the valuations the taxes were based on.
