Mine workers renew demands for CEO axing
Pauline Dikuelo | Monday April 15, 2024 06:00
The Mine workers recently met with MMG executive management in the aftermath of the $1.8 billion (P25, 2 billion) deal sealed by MMG to take over the country’s largest copper producer.
During the meeting in which Khoemacau CEO John Ferreira was in attendance, the Union demanded the replacement of the current CEO to help quell long tensions at the mine.
The union raised several concerns including responsibilities for outstanding liabilities created by the previous owners and those that have been carried forward after the completion of sale.
The union highlighted concerns over workers conditions of work, safety and health standards: instances of harassment perpetrated by the Ferreira who to the dismay of the Union has been retained by MMG.
During the meeting the union equally emphasised the improvement of other facets of KCM’s working environment, including noise pollution, working hours, housing conditions, discriminatory practices based on race and compliance with good labour practices. According to BMWU general secretary Mbiganyi Gaekgotswe, the union has however raised the desire to meet MMG board chairman to engage at a high level to conclude on the matters which the union had raised before the sale transaction. “The meeting was positive, with robust and honest discussions by both parties on the best modalities of running the KCM operations,” he said.
Previously the Union had told Ferreira that the mine works do not want him as CEO or in the executive committee when MMG fully takes over the operations of the mine. BMWU has previously marched to deliver petitions against Khoemacau claiming various forms of unfair practices against workers, including expatriate /citizen pay disparities and alleged discrimination. By then, the mine sternly denied the accusations pointing to the absence of adverse labour inspection reports and the investments made over the years in developing the mine and empowering the community.
However, MMG assured its commitment to sustainable mining practices noting that as a company listed in the stock exchange, they are mandated to maintain the highest standards of corporate governance and ESG principles. They intend to maintain the same human resources processes including the pay circle. Meanwhile, the union has however noted with concern the systematic exclusion of the union in mining sale agreements in Botswana’s mining industry which they said is supported by the law. The union feels they were sidelined in the bidding and adjudication process in the sale of Khoemacau mine noting that confidentiality and conclusion on Non Disclosure Agreements were cited as grounds for secrecy in the sale of the mine as updates were only given on meetings held during pre-due diligence and bidding stages in the sales process.
Formed in 2009, MMG operates and develops copper, zinc, and other base projects across Australia, the Democratic Republic of Congo and Peru. The Hong Kong listed firm’s largest shareholder is the state-owned China Minmetals which holds 68% equity. Khoemacau mine is currently finalising its plans for a $700 million expansion of its operations, in order to double its production to 130,000 tonnes by 2026. At that level, Botswana would be within the top 30 copper producers in the world. Khoemacau put its first concentrate in June 2021 and has now ramped up to a full processing capacity of 3.65 million tonnes per annum which is expected to produce as much as 65,000 tonnes of copper in concentrate this year.