The rebirth of hope at Tati
Mbongeni Mguni | Wednesday May 7, 2025 13:41
The people of Francistown have every right to be sceptical. The tale of the economy of the northern city is one of bright but broken promises, hopes built then dashed, the kind of situation that makes citizens become resistant to hope.
Francistowners still remember the famous Activox disappointment, where it appeared the nickel coming out of Tati would be refined, creating mind-blowing value for the city and the broader economy.
They remember the grim days of October 2016 when Tati Nickel, with its twin mines, Phoenix and Selkirk, shut its doors having sputtered along the years. At the time, most of the nation’s eyes were on Selebi Phikwe where BCL Ltd, which owned Tati Nickel, spectacularly liquidated the copper operation there.
Selebi Phikwe would later be the beneficiary of high-level government priority for recovery and diversification, with the formation of a special agency and the dispensation of incentives to attract investors. Nothing, anywhere similar went to Francistown.
More recently, Francistowners remember the closure of Mupane Gold Mine, which suspended operations last March and is now due for a sale in June.
Austrian mogul, Cevdet Caner, is on a mission to revive hope in Francistown, pledging to invest billions of Pula in raising Phoenix Mine from its ashes.
Caner’s group, NIU Invest SE is behind a successful $15 million (P205m) bid to take over Phoenix and according to the Ministry of Minerals and Energy, the new investors have already made a down payment of $5 million and received the mining licences.
At the time of Tati’s closure in 2016, production was coming from stockpiles from Phoenix, while work was underway to restart production at a new deposit at Selkirk. In 2022, Premium Nickel Resource snapped up Selkirk for P67 million and the resources are part of broader plans to reactivate BCL Mine in Selebi Phikwe. Premium Nickel is spending P88 million on various geological studies to gauge the economic potential of establishing an open pit mine at the previously underground Selkirk.
Caner plans to spend far more transforming Phoenix into a “state-of-the-art mining facility combining open pit operations with a hydrometallurgical processing line”.
NIU says it will invest $200 million (P2.8bn) over a 10-year period to bring Phoenix Mine back to profitable operations, creating more than 3,000 direct and indirect jobs.
The investment firm expects that Phoenix, once redeveloped, will have a 10-year lifespan and generate $4.2 billion (P57.3 billion) in revenues, while 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.
“Tati is a unique asset,” Caner 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, while 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.”
Company officials, in a separate response to Mmegi enquiries, stressed that affairs at Phoenix were all systems go.
“We have already started the process of refurbishing the existing equipment,” the officials said on Wednesday evening in written responses to enquiries. “We have also already begun hiring the first group of employees.”
Employment is a huge issue for Tati and the broader Francistown community. The northern city has bled jobs over the years, making it largely reliant on government branches, cross-border traders from Zimbabwe and informal sector activities.
NIU Group forecasts that Phoenix will create 400 direct jobs and up to 3,000 indirect jobs when in a steady state. In its first 18 months of operations, Phoenix is expected to create up to 50 direct jobs and 400 construction jobs.
Caner and NIU are pressing all the right buttons for Francistowners, from a major capital injection to the promise of jobs. The icing on the top is a plan for value addition in the product coming out of Phoenix, a throwback to the Activox hopes.
“Our business model for the mine is based on the value addition for nickel,” officials said. “Instead of producing nickel-bearing concentrate that is sent for smelting and refining outside Botswana, we aim to produce a final value-added nickel product (hydroxide salt) on site.”
The officials added: “Tati will produce 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). 'Offtakers will include end users and traders, and the company is in advanced negotiations with both groups.”
A ribbon-cutting ceremony featuring senior government officials is due to take place soon at Phoenix where the pledges and commitments will be laid bare before the people of Francistown and the broader citizenry.
A lot is riding on the shoulders of Caner and NIU. Public records show that the Austrian investor has a track record of closing billion-dollar deals in various sectors and while he has enjoyed success, he has also tasted failure in the past.
Most recently, Aggregate Holdings, his German real estate company with a string of properties in a Berlin shopping district, fell into troubles due to high interest rates, eventually going into court-supervised restructuring.
Media reports indicate that Caner is a hard-nosed businessman, often scrapping over interests and ventures, winning some and losing others. Earlier this year, reports emerged that he had to sell his luxury yacht to settle a debt from a deal gone sour.
NIU Invest SE, however, the investment firm with offices in Berlin and London that Caner founded in 2022, says it seeks out opportunities such as those in the green economy and is focused on entrepreneurship and value creation.
NIU is the holding company for the actual, Botswana-registered entity that is purchasing Phoenix.
The Phoenix deal appears to fall under NIU’s green economy unit, which is seeking opportunities in critical minerals globally.
“We understand the crucial role critical materials play in powering modern industries,” reads a note on NIU’s website. “As the demand for renewable energy, electric vehicles, and advanced technology continues to rise, so does the importance of securing a sustainable supply of these essential resources. “Due to our extensive network, our ability to source deals and our knowledge of the financial markets, we are able to play a significant role in the global commodities market. “Our goal is to acquire influential positions in several mining companies in the critical and strategic materials sector.”
For Francistowners, there is no other option but to bank on Caner to deliver in resuscitating Phoenix. Not only is there no other competing offer on the table but NIU’s plans represent the brightest hope that has shone over Tati since its closure.
In fact, a few years ago things seemed much bleaker for Tati as then Minerals minister, Eric Molale, told Parliament in 2019 that 47 offers had been received for Tati Nickel but these had all failed to meet the grade. Liquidators at the time also argued that Tati could not be revived without BCL’s smelter up and running.
With changes in the global market, technology and demand, new winds have swept over both Tati and BCL.
NIU, like Premium Nickel at BCL, has been reinvigorated by the global energy transition and other technological changes that have spurred the hunt for key minerals.
The people of Francistown can reasonably hope again.