22 Nov 2016

The Minister of Mineral Resources, Green Technology and Energy Security, Advocate Sadique Kebonang has refuted allegations that the decision to close BCL Mine was rushed.  

Responding to a question in Parliament, Advocate Kebonang said the decision was not rushed since BCL had been experiencing financial difficulties over a period of time.

He said BCL had been placed on provisional liquidation, meaning a decision might be made to either sell its assets and liquidate it completely or resume operations.

While Selebi Phikwe West MP Dithapelo Keorapetse said copper prices had bounced to profitable prices, the minister said the markets showed they remained depressed, adding the cost of mining remained higher than sales.

Minister Kebonang further said Tati Nickel was also not profitable adding for the mine to continue reaching the ore it needed to go underground, which was also expensive requiring P1 billion.

The minister further said BCL over a period of a year had asked the government for funding and was allocated P1 billion through Barclays Bank.

He said the mine required P3 billion to be injected but said this was difficult as it has never made that amount even when copper prices were at peak.

Talking about the Norilsk deal over South African based Nkomati mine, the minister said he was not aware that the Mineral Development Company Botswana (MDCB) were responsible for its failure and therefore cannot take any action against the company’s executive management.

He said the two parties met for negotiations in London but the deal ended collapsing as Norilsk demanded amendments in terms of agreement.

Making a follow up question, Gaborone Bonnington South MP Ndaba Gaolathe said in a study conducted, three scenarios were given and asked the minister if it could be availed.

He further asked about the process of selling the BCl mine to new owners and asked if it could be transparent.

To this, the minister said he could make the study available.

He further said the liquidation process would be transparent adding the creditors and debtors are to meet the liquidator at the High Court in February next year where possible suitors would be announced.

MP Keorapetse had asked the minister to update parliament about BCL operations.

He said government in its decision to close the mine was ill advised saying the BCL Recover Plan was approved by the Board and Cabinet. MP Keorapetse said copper prices had bounced as it was anticipated.

He further asked if there were any multinational corporations interested in buying the mine.

The Selebi Phikwe West legislator further asked if the mine had a life span of up to 2034.

He said Norilsk did not want P3 billion once off payment but had agreed on easy terms but MDCB messed up the deal. BOPA