07 Jun 2018

Mowana Copper Mine in Mosetse, which closed down in 2015 and resumed production in March last year is said to be economically viable.

Briefing the ongoing Tutume Sub-council full session on Tuesday, the mine’s general manager, Mr Sebele Molalapata said Mowana Copper Mine has now been bought by Leobowang Holdings from its liquidator and the company has since revived the mine’s operations.

Mr Molalapata explained that Mowana mine was the flagship of Leobowang Holdings and when they started in January 2017, their focus was to refurbish the mine structures as much of the machinery was worn out as a result of the two-years closure.

He noted that by March 2017, they started the actual production with emphasis on safety, noting that they started work with 50 employees.

However, he said their employment quota has increased to 400 employees, including 10 expatriates.

Mr Molalapata told councillors that they had a major setback after they started production because the company they had engaged abandoned mining work last June.

With such a major setback, he noted that it affected their cash flow to the extent that even to date they still owe some suppliers.

He said it took almost three months from June to September without operating, as the company left without giving any notice.

In that scenario, he said they were forced to redirect their capital into purchasing machinery.

Mr Molalapata nonetheless said they had since recovered from the challenges and had successfully listed in the London Stock market, a positive demonstration that they were moving in the right direction.

He also anticipated that in the next 12 months there would be tangible results benefiting the communities of surrounding villages.

He also said by April next year, they would have doubled their production from 100 000 tonnes.

He however decried challenges of theft of mine property, adding that they were working together with Dukwi police to address the issue.

He said in September, they would have a grand opening of the mine. ENDS