Renison Bell Limited

RNS Number:6813M
Murchison United NL
24 June 2003





                                                      ASX, AIM and Media Release
                                                                    24 June 2003


Appointment of Voluntary Administrator to Renison Bell Limited
_____________________________________________________________________



Murchison United NL ("Murchison" or "the Company") (ASX: MUR, AIM: MUU) today
announced that it had appointed Mark Reilly of Featherby Reilly as Voluntary
Administrator to its wholly owned subsidiary Renison Bell Limited ("Renison 
Bell").



Following the suspension of operations on 27 May, the Company has been working
closely with its advisers in respect of the appointment of Featherby Reilly who
are regarded as specialists in the area of administration and restructuring of
viable businesses.



Following a detailed review and discussion with major stakeholders, the
Directors have concluded that the appointment provides the most appropriate
framework to fully investigate all available recapitalisation options for
Renison Bell.



The review has indicated that at current tin prices Renison Bell is able to
generate an operating surplus for at least the next 5 years and retire all its
outstanding liabilities. In addition there exists a strong potential to extend
the mine life through the conversion of known resources to reserves.



At current tin prices however, the forecast surplus is insufficient to justify
the capital expenditure required to enable the immediate recommencement of
operations. In addition the quantum of the forecast surplus is uncertain in
light of the ongoing appreciation of the A$ against a flat US$ tin price.



As a result, it has been decided to place the Renison Bell operations on a care
and maintenance basis pending a full review of the options for recapitalisation
and management of the outstanding liabilities.  A small management team will be
retained to prepare for a rapid recommencement of operations. The remainder of
Renison Bell's 28 direct employees have been advised that their employment
arrangements will not be extended.



The balance of the workforce has previously transferred from direct Renison Bell
employment to various subcontractors over the past 3 years and has received over
A$5.5 million in entitlements.  Following the cessation of operations on 27 May,
the majority of these employees were redeployed elsewhere in Tasmania and
Australia with a number receiving additional payouts.



The Renison Bell operation has been in near continuous production for over 40
years and has recently been restored to profitability following the collapse in
tin prices in 2001. During the March quarter the operation recorded an EBIT of
A$772,000 and all outstanding obligations to its banker Westpac were fully
discharged.



There is not expected to be any impact on the Company following the appointment.
The arrangements for the recapitalisation of Renison Bell will be advised as
soon as they have been finalised.



Managing Director Paul Atherley commented: "We have supported Renison Bell
through this very difficult period in its long history and having restored it to
profitability we intend to recommence operations at the earliest opportunity.



The appointment of the Voluntary Administrator is an important step in the
future of Renison Bell as it provides a formal framework within which we can
recapitalise the operation and manage the outstanding liabilities."



For further information please contact:



Paul Atherley, Managing Director
Murchison United NL
Telephone:     [phone]
Facsimile:     [phone]
Mobile:        [phone]
Email:         [e-mail]






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