09 Oct 2016

Government has decided to put BCL Mine in Selebi Phikwe under liquidation.

The Minister of Transport and Communications, Mr Kitso Mokaila, delivered the message to the mine employees early this morning (October 8).

He said operations stopped as from today and the mine would remain closed until the liquidation process has been completed.

He said the intention to liquidate the mine was handed to court where a liquidator would be engaged to undertake the liquidation process.

Mr Mokaila is member of a cabinet sub-committee that President Lt Gen. Dr Seretse Khama Ian Khama assigned to look into the BCL Mine challenges and consequently submit their findings to cabinet.

Mr Mokaila said the BCL Mine was operating at a loss, thus taking a lot of money from government coffers, something that also impacted negatively on the economy.

Government, he said, previously made efforts to resuscitate the mine numerous times, but costs went up close to P5 billion, therefore it was no longer feasible to run the mine.

Meanwhile, another member of the cabinet sub-committee, Minister of Investment, Trade and Industry, Mr Vincent Seretse, said though the mine had been shut down, employees would continue receiving their salaries until the liquidation process had been completed.

He said those accommodated by the mine would continue living in the houses until everything was completed.

For her part, Ms Regina Sikalesele-Vaka; chairperson of the Mineral Development Company, which is a government company that oversees the mining industry, said liquidation of the mine was necessary since it was costing government financially.

She said the liquidation process would give information on the way forward. She said the process would also determine employees’ exit packages and also inform government on what assets the mine had as well as what could be done with assets and other operations at the mine.

She requested employees to cooperate with the government and liquidator.

Selebi Phikwe East MP, also Minister of Infrastructure and Housing Development, Mr Nonofo Molefhi called on BCL Mine employees to be patient and cooperate with government.

He said the decision to liquidate the mine was a result of consultations that included the mine management and Botswana Mine Workers Union (BMWU).

 Mr Molefhi said the decisions made by the liquidator would be in the best interest of the mine, employees and economy of the country. 

The BMWU representative, Mr Western Ebepile said they foresaw the mine closure, but stated that the decision came too early.

He said they expected some concerns to be addressed first before the final decision could be made.

The union, Mr Ebepile said, would put plans in place to map a way forward.

He urged BCL Mine workers and members of the union to remain calm.

Members of the Cabinet Sub-Committee, which is headed by Vice President Mokgweetsi Masisi, include Minister of Mineral Resources, Green Technology and Energy, Advocate Sadique Kebonang, Mr Seretse, Mr Molefhi and Mr Mokaila. ENDS