03 Aug 2026

Care and maintenance activities for BCL’s South East Extension (SE EXT) No. 1 and No. 3 Shafts have cost the mining estate nearly P2 billion since liquidation began, Parliament heard recently.

The expenses cover labour, water and electricity rates, taxes, spare parts, housing and the operation and maintenance of underground vehicles.

Responding to parliamentary questions from Selebi Phikwe West MP, Mr Reuben Kaizer, Minister of Minerals and Energy, Ms Bogolo Kenewendo detailed how the estate’s finances, including over P633 million in reported recoveries, had been deployed. 

Mr Kaizer had asked for an update on the utilisation of recoveries, outstanding creditor claims, available estate funds and the possibility of ex-gratia payments for former workers.

Minister Kenewendo explained that government funded all care and maintenance costs in full as administrative expenses until March 2021. 

Since then, she said the liquidator had covered the costs using available estate funds, supplemented by ad-hoc payments from government and the Mineral Development Company of Botswana (MDCB).

To date, she said the liquidator had repaid P100 million to government’s post-liquidation loan account while the remaining estate funds had been directed toward ongoing environmental rehabilitation, statutory administration fees and the purchase of tremor monitoring equipment.

Parliament also heard that financial accounting through September 30, 2024, had been detailed in two Liquidation and Distribution Accounts submitted to the Master of the High Court and a third account, covering transactions from October 1, 2024 onward, would be lodged once financial close was reached and the liquidator was released from further rehabilitation obligations, under Section 75 (3) of the Mines and Minerals Act.

Addressing creditor payouts, Ms Kenewendo stated that ABSA Bank, the estate’s sole proved secured creditor, had its P35 million claim settled in full under the first distribution account.

Regarding former BCL workers, the minister said they held preferent creditor status for terminal benefits under the Insolvency and Employment Acts. 

She indicated that government funded and paid such benefits amounting to over P152 million (P152 945 722), subsequently taking cession of the claims. 

“This extinguished the employees’ direct claims and transferred the preferent creditor status to government,” she said.

She further confirmed that former employees had received all statutory terminal benefits owed to them under the law. 

She explained that the Companies Act had no provision for ex-gratia payments, emphasising that the liquidator had a legal duty to act strictly in the best interest of the broader body of creditors. 

Meanwhile, she said proved concurrent creditor claims currently stand at over P1.162 billion (P1 162 439 389.68), while claims from creditors who failed to prove their losses to date had legally prescribed. ENDS