24 Nov 2016

Minister of Mineral Resources, Green Technology and Energy Security, Advocate Sadique Kebonang has informed Parliament that the initial purchase consideration of US$305.9 million  was negotiated to US$170.3million net payable for assets between BCL and Norilsk Nickel.

He said the amount was funded through a combination of a senior debt facility and medium-term note facility.

He further said BCL initiated another re-negotiation of the purchase price in May 2016, with a view to reduce the purchase price, in view of the prevailing low nickel prices and this was not acceded to by Norilsk Nickel.

Advocate Kebonang further said the negotiations between BCL and Norilsk Nickel started in quarter 1 of 2014 and were concluded with signing of the sale and purchase agreement in October 2014.

He said the acquisition of 50 per cent of Nkomati however, remained pending for a period up to August 30, 2016, awaiting the fulfilment of all conditions prudent.

He further said acquisition of 50 per cent participation interest in Nkomati Nickel and Chrome Mine (Nkomati localted in Mpumalanga Province in South Africa held by Norilsk Nickel Africa (NNAf) subject to fulfilment of Condition Precedent (CP’s), which included an off-take agreement for Nkomati Concentrate, regulatory approval and transfer of Norilsk Nickel’s liability on Nkomati to BCL.

Advocate Kebonang said 85 per cent shareholding in Tati Nickel Mining Company (Tati) located in Botswana – transaction was closed.

BCL Investments, a wholly owned BCL subsidiary, was utilised as the acquisition vehicle for the assets. He said in April 2015, BCL concluded the Tati acquisition at 85 per cent shareholding.

He said several conditions precedent (CP’s) to agreement were fulfilled, only one remained under discussion with seller.

Mr Kebonang was responding to questions asked by Ghanzi North MP, Mr Noah Salakae who had asked the minister to state the date of commencement and finalisation of negotiation for BCL acquisition of shares in Nkomati Mine in South Africa.

He also asked the minister to state names of members who represented BCL in the negotiations, whether an agreement was reached and to further state the terms, costs incurred in the process of negotiations and names of board of directors for the last five years. BOPA