After more than a century of managing a magnetite iron mine in the Arctic Circle, a mining company decided to close operations. This left the organization with a significant amount of surplus used in the excavating, processing, and transporting of mining materials, including drilling equipment, crushing facilities, and haul trucks.
The client selected Liquidity Services to maximize recovery value for its mining surplus. After evaluating the assets, Liquidity Services determined that while some were in-demand items that could easily be sold via auction, others were more specialized and would require a different strategy.
Tapping its expertise in asset disposition and the mining industry, Liquidity Services implemented an expert disposition strategy, launching an auction for the generalized assets and private treaty sales for the specialized ones (a private treaty sale involves a direct negotiation between buyer and seller). Dedicated to providing the highest levels of service, our team stayed on the client’s site for an extended period so it could evaluate the assets, prepare them for sale, and research and approach reputable buyers.
Liquidity Services sold the assets for an eight-figure sum that greatly exceeded client expectations. The auction attracted bidders from Europe, India, South Africa, and the U.S. The wide range and high number of buyers for this auction ensured competitive bidding that maximized recovery value for the client. Through a series of private treaty sales, Liquidity Services was able to offload the specialty equipment as well.
Liquidity Services’ targeted advertising methods helped it reach an Australian mining company, which purchased most of the remaining assets and the site itself. The speed with which we executed our disposition strategy proved valuable, as we were able to sell all assets before the harsh northern winter, which would’ve caused the equipment to depreciate significantly.