Austrian investor plans P2.8bn to resurrect Tati
Mbongeni Mguni | Monday May 5, 2025 06:00
NIU snapped up Phoenix last year for $15 million (P205 million), after an extended period of the liquidators and government looking for takeover partners for the operation. Phoenix’s sister operation, Selkirk, was purchased by Premium Nickel Resources Limited for P67 million two years ago.
Phoenix was put on care and maintenance in 2003, whilst Tati Nickel — which owned and operated the two mines — has been in liquidated since 2016.
NIU executives told BusinessWeek that extensive investment would be made to develop a state-of-the-art mining facility “combining open pit operations with a hydrometallurgical processing line”.
“NIU Group plans to invest further capital into the company to develop and expand mining operations to realise the asset’s full value, over and above the asset’s replacement value, estimated to be over $500m,” an official said. “Returning the asset to profitable operations will require approximately $200m of capital expenditure over a 10-year period. “This includes $50m over the initial 18 months of ownership to ramp up to steady-state production levels, with the remainder to be sustaining capital expenditure post-2026.”
The officials expect Phoenix, once redeveloped, to have a 10-year lifespan and generate $4.2 billion (P57.3 billion) in revenues, whilst contributing $3 billion to the economy (GDP) over the period. Expected production over the lifespan includes 170,000 tonnes of nickel, 100,000 tonnes of copper, and 7,000 tonnes of cobalt.
NIU Group forecasts that Phoenix will create 400 direct jobs and up to 3,000 indirect jobs when in a steady state, as well as up to 50 direct jobs and 400 construction jobs within the first 18 months of operation. The company has an additional exploration target to uncover assets that can yield 30 to 50 million tonnes of run of mine production.
Caner said the Germany-headquartered group was looking at a long-term partnership with Botswana.
“Tati is a unique asset,” he said in a statement. “We are building a dynamic company that will grow in tandem with Francistown and the entire region. “We will remain dedicated to local development through initiatives in education, infrastructure, and healthcare, whilst maintaining focus on safety, environmental compliance, and stakeholder engagement. “We are seeking to quickly establish a stable and growing operation that will be a long- term partner with communities in and surrounding Francistown, as well as with the citizens and government of Botswana.”
NIU plans to diversify the end products to be produced at Tati. These will include a variety of metals and hydroxide salts that are widely traded internationally for well-established end uses. Products will include nickel and cobalt hydroxide precipitates, copper cathodes, metal bars for platinoids (platinum, palladium, rhodium), and precious metals (including gold).
“New technologies to be introduced at Tati will improve our ability to supply critical minerals for the global economy and deliver these products in an environmentally sustainable manner. “We are proud to bring renewed focus to this important asset that so closely aligns with our vision of becoming a leading Western mining investor focused on inputs necessary for advanced industries and future energy requirements globally,” said Caner.
NIU quoted Minerals and Energy minister, Bogolo Kenewendo, as saying government is pleased that Tati will return to production after years of liquidation.
“NIU’s strategic investment will not only restore operations at this historic asset but also inject fresh momentum into the economy of North‑Eastern Botswana. “This milestone strengthens our nation’s standing in the global critical‑minerals arena and underscores Botswana’s resolve to harness its resources for sustainable, inclusive growth,” Kenewendo said.
NIU’s investment in Phoenix comes about six years after the search for a new investor officially ended. At the time, then Minerals minister, Eric Molale, told Parliament that 47 offers had been received for Tati Nickel, but these had all failed to meet the grade.
Late last month, Kenewendo told Parliament that NIU had paid a deposit of $5 million but was yet to come to a financial close on the transaction, following the granting of mining licences.
NIU is purchasing Phoenix through its indirect wholly owned subsidiary, Tataki Mining Company.