Mupane Gold grinds to a halt
Chakalisa Dube | Thursday March 14, 2024 18:02
In a press release issued earlier today through the secretary general, Mbiganyi Gaekgotswe, the Union expressed grave concern over the potential shutdown of the Mine, which could lead to significant job losses. Reports of cash flow problems at Hawks Mining have circulated for some time.
Hawks Mining, a locally owned company, acquired Mupane in 2022 with hopes of revitalising its operations. However, the situation has deteriorated rapidly.
Despite numerous pleas, BMWU says Hawks Mining has failed to meet its contractual obligations to its workers.
“Hawks made a written undertaking to the union, to pay its workers, effective every 25th day of each month. To date, Hawks Mining has failed to discharge its undertaking despite repeated demands from the Union,” Gaekgotswe explained.
The secretary general added that operations completely ground to halt this week because subcontractors abandoned the work site due to unpaid services. Both electricity and water supply to the plant have been disconnected due to defaulted payments by Hawks Mining, according to the union.
Gaokgotswe expressed fear that if the management’s interventions to save the Mine fail to bear any fruits, creditors may apply for the company's liquidation, jeopardising the livelihoods of over 205 employees and their families.
“The union pleads with the government to cause BPC and Water Utilities to write-off Mupane Gold Mine’s utilities debt. “The Government through the Minerals Development Company Botswana should also acquire shareholding of Mupane Gold Mine and recapitalise the business,” Gaekgotswe said adding that such move would save direct and indirect jobs.
Reports suggest that Hawks Mining has attempted to engage with the government through the Minister of Mines and Minerals, Lefoko Moagi, but is yet to receive an audience. The union said that this raises questions about the government's stance on the impending closure and its impact on the affected employees and their families.
Mupane’s closure would be a massive blow to the economy of Francistown. The city is still struggling to shrug off the challenges that were brought by the closure of Tati Nickel Mining Company in 2016 which led to massive job losses. Over 500 people directly lost their jobs when the Tati was liquidated after failing to fulfil obligations to investors. Several businesses that serviced the mine also closed.