BMWU appeals CCA decision on Mupane
Chakalisa Dube | Monday April 25, 2022 06:00
Last month Canadian firm, Galane Gold announced plans to sell its shares at Mupane Mine to Hawks Mining Company Proprietary Limited "at a nominal fee". The sale is expected to be completed soon following approval by the Competition Authority. The authority ruled that the proposed sale would not have any negative effect on public interest matters in Botswana.
However, the union has been resisting the sale, writing earlier this month to the CCA and demanding that the sale of the mine be halted. The BMWU argues that the sale of the mine is illegal and is contrary to public policy.
In addition, the union has accused the mine owners of corporate violations in relation to the health of its employees.
Additionally, the BMWU wanted to know who (between parties in the transaction) would be held liable for the cost implications of employees who will in future be deemed to have contracted silicosis as a result of being exposed to dust at the mine. The union previously complained that Mupane did not adhere to high safety standards.
This week, BMWU executive secretary, Kitso Phiri said the union was continuing its battle against the takeover.
“The CCA has responded, and we have expressed our intention to appeal against their decision. “We are waiting to have a meeting with them for clarity before we file our response,” he told BusinessWeek.
Phiri added: “The detailed reasons why we are opposing the decision of the CCA will be in our appeal application.”
Contrary to the position of BMWU the CCA emphasised that the mine sale does not override or negate any other mandatory statutory approvals or processes that any of the parties to the transaction must comply with under the laws of Botswana.
In a decision released last week, the CCA also said the proposed transaction is not likely to result in any adverse effects on competition, nor endanger the continuity of mining and processing of gold ore in Botswana because Mupane is the sole gold mine in the country.
“Pursuant to the provision of Section 53 of the Act, the authority has unconditionally approved the proposed acquisition of 100% of the total issued share capital in Mupane Gold Mining (Pty) Ltd by Hawks Mining Company (Pty) Ltd.”
Hawks is a citizen-controlled company run by individuals who form part of Mupane’s top management team. The current Mupane general manager, Cedric Sam is understood to be leading the buyers.