11 Mar 2019

Selebi Phikwe West MP, Mr Dithapelo Keorapetse has tabled a motion calling on government to facilitate the re-opening of BCL mine through cost sharing of environmental rehabilitation liability and extending incentives to investors interested in buying and running the mine.

Tabling the motion on March 8, Mr Keorapetse said the motion did not call on government to open and run the mine, but rather to aggressively ensure that the mine was re-opened by interested investors by removing all hurdles impeding the buying of the mine.

The MP said the plummeting of nickel prices in 2015, which formed part of government’s reasons to close the mine, was not strong enough as it was not the first time the prices had plunged.

He said the only difference was that when prices plunged in the past, plans had been put in place to weather the storm.

Mr Keorapetse noted that the BCL mine had adequate mineral resources that could support a reasonable mine life, especially the Selebi mine shafts.

“Most importantly, feasibility for Tati Nickel’s Selkirk deposit has also been confirmed. With the projected positive market conditions for the base metals complex, it will be a massive opportunity lost for the country to leave these resources unexploited,” he said. 

The legislator said BCL mine could be opened immediately provided it was removed from liquidation and placed under judicial management.

He said government could also set up a BCL environmental rehabilitation liability trust in which government could contribute some money into and divert a certain amount of both taxes and royalties from any investors running the BCL mine for future rehabilitation purpose for cost-sharing of rehabilitation expenses.

Mr Keorapetse also said BCL was never set up as a normal commercial enterprise with the flexibility necessary to be able to raise revenue and determine its financial fate.

Debating the motion, mineral resources, green technology and energy security minister, Mr Eric Molale opposed the motion, saying government had carried out thorough assessment on the viability and profitability of the mine and found it to be unprofitable.

He said in closing the mine, government’s intention was to have private investors take over the mine, as government had had no returns from it since its inception.

Minister Molale said it was therefore wrong to say that government had closed the mine inadvertently and without reason.

MP for Gaborone-Bonnington North, Advocate Duma Boko said it was a error on the part of government to close the BCL mine and put it under liquidation.

He said what ought to have been done was place the mine under judicial management.

Regarding the assertion that the mine was closed due to the drop in copper prices, Advocate Boko said the reason was not valid as it was known that commodity trading prices kept on fluctuating.

For his part, MP for Maun West, Mr Tawana Moremi said it was possible that the non-profitability of BCL mine was due to the system of mining that was used and not necessarily that copper and nickel were not profitable.

He implored government to admit that it made a mistake in closing BCL mine.

MP Samson Guma of Tati East said there was no sense in the motion.

He said Tati company, a subsidiary of BCL mine was viable and ought to be opened. Thus, Mr Guma argued for the delinking of Tati company from the main company.

The lawmaker said what was prevailing on the ground necessitated the opening of the mine, and indicated that it had to be core of what lawmakers focused on.

Vice President and MP for Boteti West, Mr Slumber Tsogwane also opposed the motion, describing it as a political game.

He said government had ably demonstrated that since its inception, BCL mine had made profits only once.

He said there was no reason why the mine had to be opened as it had during its lifespan continued to drain government coffers with no returns. ENDS