MPs demand update on PNR deal
Tsaone Basimanebotlhe | Tuesday February 15, 2022 14:52
This was after the MP for Selebi-Phikwe West, Dithapelo Keorapetse requested the minister responsible to update Parliament on the conclusion of the exclusivity period, the consequent signing of the purchase agreement and fulfilment of the transaction by the parties.
He also wanted to know the value of the assets, and how much they have been sold for, when production is likely to start and when new jobs besides care and maintenance will be coming including the sort of skills likely to be needed in the immediate, medium and long term.
When responding to the question, minister Lefoko Moagi said: “The extent of the resource is not known and it is an integral component of the transaction that PNR Botswana is obligated to fund a significant prospecting and drilling programme as an initial step towards opening the mine, which is expected to cost approximately P300 million”.
He said the liquidator has been contracted by PNR Botswana to continue doing care and maintenance for the next six months whilst PNR Botswana mobilises the development of the asset, while a long-term solution for care and maintenance is being discussed.
In addition, he said PNR Botswana will effect payment in the sum of P69 million being PNR Botswana’s contribution to BCL for the costs of care and maintenance during the exclusivity period enjoyed by PNR Botswana leading to the closing of the transaction.
On the issue of rehabilitation, the minister said liability which adhered to the Selebi Mines at one stage thought to be close to P500 million has been negotiated by the liquidator with PNR Botswana (and confirmed by the Director of Mines) as being P42 million as this equates to saving too in the region of P428 million.
He said the assertion that the PNR Botswana transaction is the sole significant transaction is not correct.
“The liquidator aims to sell the remaining assets of BCL over the next six to seven months. He is presently engaged in the next round of disposals of BCL and Tati assets, which will have the effect of recovering significant funds for the estate and the rejuvenation of other economic activities. Such assets include the remaining Phikwe Mines comprising two shafts, smelter, concentrator, tailings dam, slag dumps, open pit, workshops, training centres and labs. Non-mining assets to be disposed of including the hospital, office block, housing units and a farm,” he said.
The minister said the remaining Tati assets associated with Phoenix Mine will also form part of the disposal process now being embarked upon.
And the next stage of the disposal process will be started in March 2022 when all persons will be invited to participate in the right to bid to acquire assets on offer.
Further adding that the BCL asset register is not a public record but confidential to the company. In terms of the Companies Act, the liquidator is prohibited from disclosing the same.
“All remaining assets will be offered to bidders in March 2022 and all persons shall have the right to participate in the process. Given that the process is currently being undertaken, once bids have been received we will be in a position to understand citizen participation in the process,” the minister said.
He said the Government of the Republic of Botswana is currently renting 1,100 accommodation to miners who lost their jobs when BCL was placed into liquidation at a significant cost to the fiscus.