The government of Botswana has given the newly-appointed provisional liquidator of mothballed nickel miner Bamangwato Concession Limited (BCL) four months to make a determination on whether the mine should remain closed or suggest ways of resuscitating it.
In a statement aimed at re-assuring the nation following the widespread panic generated by news of the closure of BCL and two subsidiaries which have been the key drivers of the regional economy of south-eastern Botswana, Mineral Resources, Green Technology and Energy Securities Minister, Advocate Sadique Kebonang, said the government would only decide the fate of the company when the provisional liquidator concluded his assessment of its prospects.
“BCLMine Liquidator, Mr Nigel Dixon Warren who was appointed by the High Court, was given only four (4) months to present a report on the status of the mine. So he will report back in February with advice for government on whether to completely shut down the mine or not. Presently, only production is shut down, NOT the mine,” Advocate Kebonang said.
The country’s top nickel producer, as well as subsidiaries Tati Nickel Mining Company (TNMC) and investment vehicle BCL Investments, were closed down by government a week ago due to viability problems and a heavy debt over-hang estimated at P7 billion. The government, which spent P10 million on subsidising the State-owned miner between 2007 and April 2016, said it could not longer afford the bail-outs as they represented a massive drain on treasury resources.
The minister’s assurances followed widespread panic within the business community in Selebi-Phikwe, with most pondering whether or not to relocate following the closure of the mine, which was the single largest employer in Selebi-Phikwe and Tati towns. The company had a workforce estimated at 6,000.
Advocate Kebonang said the business community should not to abandon Selebi-Phikwe as government was seeking alternatives to safeguard the local economy following the BCL shutdown.
