BCL mine liquidator’s contract ends December

Three companies submitted bids to buy the mine

Government has given BCL provisional liquidator a deadline of December to have completed its job as it is no longer prepared to incur more expenses on the unprofitable BCL mine.

Since closing the mine in 2016 government spends millions to keep it habitable while waiting for a new buyer or investor.

The mine’s greatest asset is the stateof-the-art smelter, which was at the time of its closure, lined up to process copper and nickel ore from both the region and countries such as Russia and China.

Speaking to Botswana Guardian on Tuesday Minister of Mineral Resources, Green Technology and Energy Security Lefhoko Moagi confirmed that three companies some of which are Joint Ventures composed of Batswana and foreigners, have been shortlisted.

Lefhoko said government and the provisional liquidator will be looking at the respective bids because “we have given the liquidator a timeline of December 2020 as we cannot continue to invest on a project that is not profitable”.

This publication has it in good authority that some of the prospective buyers wanted to acquire the mining assets for a song.

Sanek Trust Recovery Services of Cape Town, South Africa under Trevor Glaum took over as provisional liquidator from Nigel Dixon-Warren.

Glaum is with Sivalutchmmee Moodiiar a partner at Sanek, and Stephen Gore as joint co-provisional liquidators of BCL Investments or BCL, an investment arm owned by BCL Limited.

The closure of the 64 year old mine caused controversy as it left over 5000 employees without jobs. Dixon–Warren was relieved of his duty when government felt his fees were exorbitant.

At some stage it was reported that the BCL financial position since 26 October 2016 was P108, 923, 527 being money reflected some two weeks after BCL mine closure.

Interestingly by February 2017 the level of funding of the estates was reported to have gone down to P78.5 million with the rate continuing to diminish, Government is the lead creditor in the liquidation with its then claims against BCL accounting to a total of P1.36 billion and, or 94 percent of the proven claims.

Presenting his Ministry’s proposals for Mid-Term Review of the National Development Plan 11 (NDP 11) Moagi told Parliament that with regard to BCL liquidation, the process of identifying an investor for BCL and Tati Mines is progressing well. Three (3) companies submitted their proposals to the liquidator for his consideration and it is expected that the evaluation process, including award, will be completed by December 2020. Government continues to cover the cost of liquidation, care and maintenance of the mine, as well as rentals for former BCL employees to preserve the assets while the liquidation process is underway. Shaft rehabilitation has been completed at Patayamatebele and is progressing well in Matsiloje. “We expect it to be completed by end of December 2020,” the minister said.