26 Mar 2019

Members of Parliament have voted against the motion tabled by Selebi Phikwe West legislator, Mr Dithapelo Keorapetse, which requested government to facilitate, as a matter of priority, the re-opening of BCL mine.

The motion also called for cost sharing of environmental rehabilitation liability and extending incentives to investors in the buying and running of the mine once opened.

Despite the lengthy debates from legislators on both sides of the aisle, the motion did not see the light of day as 27 MPs voted against it while only 16 voted in the favour.

During his advocacy for the re-opening of the mine, Mr Keorapetse argued that government’s decision to close the mine in 2016 was a monumental mistake, which government should admit and apologise for.

He said the motion was not calling for the government to open and run BCL mine, but was rather urging it to ensure that the mine was reopened by interested investors through removing all obstacles that hindered investor interests.

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

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

Interested investors, he said, have however pulled back due to the liquidator’s demands, who on the other hand continued to benefit heftily on the liquidation process by asking prospective buyers to assume the P2.8 billion environmental rehabilitation liability.

He said it was alleged that the machinery and shafts at the mine were slowly deteriorating and there was flooding underground, something which would also scare away potential buyers.

He, therefore, argued that the mine could be reopened with or without the liability.

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 stated that government could also consider commissioning a fresh study, independent from the liquidator, by mining experts, especially with the knowledge of BCL itself and nickle and copper mining industry, with a view to considering restarting of the operations and subsequently sharing this information with an interested investor.

He indicated that many businesses had, as a result of the closure of the mine, collapsed and many people had been thrown into sudden unemployment and abject poverty as they were unable to meet their basic needs. Ends