27 Oct 2014

BCL Mine has expanded its portfolio by acquiring all Norilsk Nickel operations in Africa, including the Tati Nickel Mine. BCL Investments has agreed on a purchase of US$337 million (P2.9 billion).

Briefing the press about the transaction, BCL Mine general manager, Mr Dan Mahupela said the move was a Polaris II initiative aimed at expanding and broadening BCL’s operations beyond the borders of Botswana and boosting the organisation’s financial muscle. 

Mr Mahupela said the initiative would ensure that BCL Mine retained and secured its current human capital. He said BCL’s acquisition of Norilsk Nickel operations would also have a significant impact on the economy of the region and the country. 

He noted that BCL had signed an agreement with Norilsk Nickel to formalise the acquisition of the company.

He said through the transaction Norilsk Nickel has sold its operations in Africa which include its 50 per cent participation interest in the Nkomati Nickel and Chrome Mine in South Africa, and its 85 per cent stake in Tati Nickel Mining Company in Botswana.

“On October 17, 2014 BCL Limited through its wholly owned subsidiary, BCL Investment (Pty) Ltd entered into a binding sale and purchase agreements (the SPA’s) with Norilsk Nickel Mauritius (NNM) and other international Norilsk Nickel Group Companies for the acquisition of 100 per cent of the issued share capital of Norilsk Nickel Africa (NNAf) and Tati Nickel Mining Company,” he said.

He explained that NNAf owns a 50 per cent participation interest in the Nkomati Nickel and Chrome Mine in Mpumalanga, South Africa.

“Through this transaction Norilsk Nickel has sold to BCL its operations in Africa which include its 50 per cent participation interest in the Nkomati Nickel and Chrome Mine in South Africa, and its 85 per cent stake in Tati Nickel Mining Company in Botswana,” he said.

He went on to state that BCL owns and operates a smelter with the capacity to treat one million tonnes of concentrate per annum but currently treats 850 000 tonnes per annum. The smelter, he said, was ranked amongst the lowest cost nickel cooper smelters globally.

“Over 50 per cent of the current smelter concentrate feed comes from BCL’s own mining production, whilst the balance is been sourced from third parties either as purchased material or on a tolling basis,” he said. Furthermore, he noted that over recent years, the key suppliers of concentrate feed to BCL have been Tati, Nkomati, Bindura Nickel and Kevista (Finland).

Mr Mahupela noted that BCL has driven its diversification and internationalisation programme through its Polaris II strategy. He said the strategy aims to position the BCL smelter as a prime regional asset with the capacity and ability to treat nickel concentrates from regional producers.

In addition, he said BCL would through the programme exploit the mining and operational skills it has built over a 40 year period it has been operating by entering into partnerships on top tier assets in Southern Africa.

“We will consolidate a stable operating base to build a regional company in the mining and treatment of base metals,” he said. ENDS