09 Jul 2023

A number of potential companies have shown interest in a bid to buy Khoemacau Copper Mining.

Negotiations were said to be ongoing and that once the process was finalised, the successful company would be announced.

Khoemacau Copper Mining CEO, Mr Johan Ferreira thus said when apprising a full council session on the shareholding sale process of the mine.

He explained that the decision to sell the mine came as copper companies wanted to position themselves in the industry and noted that ‘this decision will bring significant positive results for the mining industry in Botswana’.

Located in the Kalahari copper belt that stretches from north eastern Botswana to western Namibia, Khoemacau mine commenced production in June 2021. 

It is owned by Cuprous Capital Company with 88.1 per cent owned by Cupric Canyon Capital LP, which is majority owned and fund managed by Global Natural Resources Investments (GNRI).

The mine is involved in underground mining at the Zone 5 site.

Mr Ferreira also allayed fears that the sale of the mine would affect employees, saying there would only be change of ownership. 

“We do not anticipate any retrenchment because we expect the new company to maintain the status quo and run a sustainable and safe mining.”

Khoemacau mine’s future, he said, was bright and hoped the new company would help optimise current operations, maximise the full potential of the mine and ensure high productivity.

Although he admitted that there would be some few changes, he emphasised that the right procedures would be followed.

Mr Ferreira noted that people should not panic as it was normal in the mining industry to sell mining assets in order to boost production. 

Khoemacau, he said, had the potential to be among the top class mining companies around the world, adding that they were expecting the new company to work well with Botswana and respect the existing policies in place.

“We need to sell the company successfully considering its great future and a lot of development had been done at both Boseto Processing Plant and Zone 5,” he added.

In response, some councillors appreciated the presentation and pointed out that their main worry was loss of jobs, but expressed gratitude to learn that there would be no retrenchments.

Cllr Luke Motlaleselelo requested the management to update political leaders on all steps until the deal was signed because their interest was on the new ownership.

He said they wanted to understand what the new owner was bringing in terms of beneficiation, corporate social responsibility and job creation for locals.

Cllr Kebareeditse Ntsogotlho concurred that they were concerned about employment and the social aspect, adding that there was uncertainty regarding security of jobs looking at the transition process. 

“We are happy that you assured us that the new company will maintain the status quo with regard to job security,” Mr Ntsogotlho added. ends