WE’RE SAFE
BR, ABSA not trapped in Minergy shutdown
Botswana Railways and Absa Bank say the ongoing shutdown of Masama Coal Mine will not significantly affect them since they did not invest directly in the project.
Responding to our inquiries, Botswana Railways spokesperson, Sereo Thabeng, said they were not aware of the developments at the Minergy Coal mine. “Minergy Coal Mine has not communicated with Botswana Railways on the problems they are facing, therefore Botswana Railways is not in a position to comment on the matter. We cannot tell if any problem may or may not affect the partnership between the two entities since the problems are not known to us,” said the Acting Head of Corporate Communications and Public Affairs.
However, the officer confirmed that their coal transportation partnership with Absa Bank Botswana, which commenced in 2021, has delivered three loads of 2000 tonnes each since the beginning of the year.
The officer said since they are not investors in the mine, they are constrained to interfere in the mine operations.
Absa’s Marketing and Corporate Relations Manager, Spencer Moreri II, said the bank was not affected by the latest developments at the Masama Coal Mine.
“Absa is not an investor in Minergy, and is not privy to the financial and other affairs of the company and therefore we cannot provide responses on any of the questions posed,” he said.
By press time on Tuesday, Minister Lefoko Moagi confirmed to Voice Money that he was due to meet the management of Minergy Coal Mine by Wednesday and that he would share more details at a later date.
“I am going to meet Minergy tomorrow. At this point, I cannot share any further details,” he said as he dashed off for another engagement.
Meanwhile, the Botswana Mine Workers Union has once again voiced its concerns over what they call government’s deafening silence on matters surrounding the looming closure of Masama Coal Mine scheduled for end of this month. The union says many days after it alerted the government on latest developments at the mine, nothing has come from the ministry.
In fact, the union says there is all evidence suggesting that the government has taken a position not to engage with them on any matter.
“This is something that the union has grown accustomed to under his ministry. At this stage, it is not clear whether we will be engaging with the minister as the regulator and enforcer of mining regulations or an investor with substantial and/or a direct interest in the Masama Coal project,” says BMWU president Joseph Tsimako in a statement issued last week.
Minergy has revealed that it is in debt of close to P500 million to a number of stakeholders including Botswana Development Corporation, its contractor, Jarcon Open Cast Mining. Other stakeholders in the project are Absa Botswana and Botswana Railways, who have partnered in transportation of the coal to outside markets.
The company Chief Executive Officer, Morne Du Plessis, has revealed that they have approached government for possible bailout.
Moagi would not confirm nor deny if the company has approached government for bailout.