20 Jul 2018

The Minister of  Mineral Resources, Green Technology and Energy Security, Mr Eric Molale has told Parliament  that his ministry is aware that some former employees of the Leboam Holdings (PTY) LTD, which operated Mowana mine from April 2017 until December 2018, are owed  salaries arrears for some months.

Responding to a question in Parliament, Mr Molale explained  that Leboam Holdings ran into financial difficulties and was unable to pay its debts, which included employee salaries and the company was subsequently placed under judicial management in December 2018.

He said one of the largest creditors of Leboam Holdings, Fujax Minerals and Energy Limited, undertook to pay some of the costs of the judicial management with the hope to restructure the company’s debt and return the company to solvency.

Minister Molale highlighted that discussions on restructuring Leboam Holdings debt and restarting Mowana mine operations were ongoing between the largest creditors, but the company would be placed under liquidation should the discussions collapse.

“Should the company proceed to liquidation, employees who are owned salaries, like other creditors can only get their share of proceeds if any have been realised once the liquidation process is complete,” he said. 

Mr Molale said there was no information relating to former workers having left Dukwi and Mosetse  village without paying their rentals as that was a private matter between lessor and the individual.

Nata/Gweta MP, Mr Polson Majaga had asked Mineral Resources, Green Technology and Energy Security minister if he was aware that Mowana copper mine employees have not been paid since the mine closure. ENDS