17 May 2021

Mupane Gold Mine will not close sooner than the expected 2023 lifespan period, says Minister of Minerals Resources, Green Technology and Energy Security, Mr Lefoko Moagi. 

 Speaking after touring the mine recently, Mr Moagi said the mine had other deposits that could augment its operations beyond 2023.He also explained that the mine had a strategic plan that would enable it to operate beyond the envisaged lifespan.

“Yes, the lifespan of the mine is expected to end in 2023, but I do not see it closing at that time and I am optimistic that it will go beyond that period,” said Mr Moagi, who is also MP for Ramotswa.

The minister is touring different mines across the country to get information on their operations, including payment of royalties and challenges faced by the industry. 

He said it was upon government to establish whether the industry was operating effectively and to render the necessary help if needed.He noted that the industry played an important role in the country’s economy and that government received revenue from the mines through royalties based on a percentage of profit generated from sales or other products.   

Mr Moagi said although prices of gold had declined in the past it now showed signs of improvement and that the expectation was to see the industry injecting more funds into government coffers.He said the mine was given a six months grace period which ends in June 2021 and that the expectation was that the mine should have paid its outstanding royalties to government.

The minister also noted that the mine, like any other business, was affected by the COVID-19 pandemic and that it had thus far registered one death. He said it had also affected production.

Mupane Gold Mine general manager, Mr Cedric Sam also underscored that the mine would not close sooner as it had other deposits. He explained that there were other open pits at Kwena and Tholo areas which had large deposits of gold as well as other small pits around the Tau area with more gold.

He urged the 400 employees not to panic as there were other options that the mine would put in place to continue operating.However, Mr Sam said there were challenges in the operation of the mine that included the breakdown of the transformer that could not be obtained or maintained locally.

He said although the price of gold had increased, the first quarter of their operations had been difficult due to the breakdown of the transformer as well as heavy rains which disrupted production.

Mr Sam noted that it affected the mine’s ability to pay royalties for the past four months, but that the future looked bright as the mine was back into production.

For his part, MP for Tati East, Dr Douglas Letsholathebe applauded the minister for the visit, saying it allowed him to get first-hand information on the operations of the mine. He also said it allowed him to check on the welfare of employees.

Dr Letsholathebe said the mine continued to play a pivotal role in the development of the country as well as creating employment opportunities for Batswana. ENDS