13 Feb 2022

GABORONE - Premium Nickel Resources (PNR) Botswana has acquired Selebi mines in Selebi Phikwe.

When answering a question from Selebi Phikwe West MP, Mr Dithapelo Keorapetse in Parliament on Friday, the Minister of Minerals Resources, Green Technology and Energy Security, Mr Lefoko Moagi said production was expected to start in three years.

The minister said the gross proceeds from the sale of Selebi and Selebi North shafts was P770.21 million while Selkirk Mine had been sold for P66.97 million.

He said PNR Botswana was committed to pay P337.81 million now and the balance of P337.81 million would be paid when they started production.

“The liquidator has entered into an agreement with a buyer to sell the copper-nickel matte to the company, after competitive bidding, for P100 million,” he said.

The minister further explained that the matte remained as part of production at the time when BCL was placed under liquidation.

He said the sale of scrap and non-core assets raised P6 million and that comprised movable assets such as vehicles.

Mr Moagi pointed that all BCL joint ventures were included in the disposal process and had been won by PNR Botswana, adding the remaining assets were to be sold.

He said the liquidator had been contracted by PNR Botswana to continue doing care and maintenance for the next six months.

PNR will pay BCL P69 million for the cost of care and maintenance during the exclusive period enjoyed by PNR Botswana.

Mr Moagi said the rehabilitation liability stood at P42 million, down from P500 million after negotiations.

PNR Botswana will explore the mine for three years, and have the right to extend for an additional year.

The minister said 100 jobs were expected to be created during this initial stage with P300 million pumped into the economy.

Further, he explained that at the end of the exploration period, if the new company was satisfied, it would spend P5 billion to construct new mining infrastructure at Selebi.

“It is envisaged that further hundreds of jobs will be created,” he said.

Minister Moagi said additional jobs were expected upon completion and opening of the mine for production.

He said all forms of skills, mining, engineering, construction and soft skills would be required.

“We are convinced this will lead to the renaissance of the Selebi Phikwe economy,” he said.

Mr Moagi said the liquidator was still to dispose the remaining Phikwe Mines comprising of two shafts, smelter, concentrator, tailings dam, slag dumps, open pit, workshops, training centres and labs.

“Non-mining assets to be disposed of include the hospital, office block, housing units and a farm,” he said.

He said the remaining Tati assets associated with Phoenix Mine would also form part of the disposal process. BOPA