The collapse of Tribe Technology Group, a promising developer of autonomous mining equipment, into administration serves as a stark reminder of the challenges facing capital-intensive hardware businesses in the mining sector. The company, which had set its sights on revolutionizing the industry with the world’s first completely unmanned reverse circulation (RC) drill rig, has succumbed to sustained funding pressures, leaving 26 staff members facing an uncertain future.
Tribe Technology Group, founded in late 2019 by Charlie King, expanded its operations to Mallusk in September 2021, backed by nearly £1.9 million in financial assistance from Invest NI. The investment was earmarked for job creation and the development of cutting-edge mining technology. However, the company’s accounts filed at Companies House reveal a grim financial picture, with losses exceeding £7 million over the last two years.
The financial difficulties have prompted Invest NI to explore clawback options to recover taxpayers’ money. In a statement to the Irish News, a spokesperson for Invest NI confirmed that the company drew down £437,328 from a £1,188,772 support package and received an additional £689,980 through their Access to Finance portfolio. “We are currently assessing any clawback implications,” the spokesperson stated.
The administrators’ report indicates that the company’s asset value ranges between £7 million and £10 million, with no listed valuation for the company’s intellectual property (IP). The administrators are now in the process of assessing and cataloguing assets, including IP, equipment, and contracts, and will engage with creditors and stakeholders in due course. A sale of the firm’s earthmoving equipment or IP ahead of a full company sale is expected to follow.
Tribe Tech’s journey included a brief stint as a London stock market-listed company. Its drilling equipment was designed to remove the need for manual human involvement in some of the mining industry’s most dangerous operations. However, the company faced significant financial hurdles, leading shareholders to vote overwhelmingly in favour of delisting from AIM and re-registering as a private entity last year. The aim was to reduce non-essential costs and maximize the impact of potential future financial resources.
The collapse of Tribe Technology Group raises important questions about the viability of capital-intensive hardware businesses in the mining sector. The company’s innovative technology had the potential to transform the industry, but the financial pressures it faced highlight the challenges of developing and commercializing such technologies. The outcome of the administration process and the potential sale of the company’s assets will be closely watched by industry stakeholders.
The situation also underscores the need for careful consideration and due diligence in public funding for private enterprises. Invest NI’s assessment of clawback implications will be a critical factor in determining the financial impact on taxpayers. The mining industry, known for its cyclical nature and high capital requirements, must grapple with the delicate balance between innovation and financial sustainability.
As the sector continues to evolve, the lessons learned from Tribe Technology Group’s rise and fall will be invaluable. The company’s ambitious vision for autonomous drilling technology, while not fully realized, has contributed to the ongoing conversation about the future of mining. The industry must now reflect on how to better support innovative ventures while ensuring financial prudence and sustainability. The coming months will be pivotal in shaping the future of Tribe Technology Group’s assets and the broader implications for the mining sector.