Economic recession has negatively affected TNMC
Lebogang Mosikare | Tuesday December 9, 2014 13:31
Speaking at the TNMC year-end party on Friday, Keitshokile reiterated that although mining contributed significantly to the country’s economy, it had been seriously affected when global demand for minerals dwindled, and prices reached bottom limits, between 2008 and 2013.
“However, since the second quarter of 2014, the prices of our metals have been relatively steadier than in the previous years albeit lower than the desired for business sustainability,” he said.
Keitshokile added that mines around the world continued to experience low prices of minerals. He said this left them with very few options such as reducing production, putting their assets under care and maintenance, reducing labour, and preserving cash.
“It has been a hard time for us, but I am proud to say that as TNMC we have managed to survive this ordeal through innovation and perseverance,” he said.
Keitshokile noted that it was important to draw lessons from the global economic recession, adding that such knowledge would stimulate their strategy going forward.
The mining expert added that costs of production had risen as the mine became deeper when TNMC endeavors to expose more ore.
“The ore grade realised remains somewhat depressed compared to budget and it requires innovation. The price of nickel could be better. Our revenue levels follow the same trend, which presents a serious challenge to all.
“The critical factor is that as a team we all agree on what must happen. Regrettably we have had to say no to some aspects of costs,” he explained.
He further said since we the company had survived tough economic recession, this was an opportune time to plan for the future. “The company is still endowed with minerals as it was in 1988. What has changed over the years is ownership of assets and yet we are about to change again,” he said.
Keitshokile said the previous mergers and acquisitions did not bring anticipated change in business strategy through sound mineral depletion philosophy. He added that it was known that TNMC had been acquired by BCL through the purchase of 85% shares, owned by Norilsk Nickel. The transaction took place in October.
Keitshokile said pending some conditions and other regulatory housekeeping issues TNMC was optimistic that that the merger would devise a new strategy and vision for the mine.
“TNMC has played an economic and social role in the north east and the country at large. TNMC will remain as the backbone of the Francistown economy,” he said.
Keitshokile also said that TNMC had invested heavily into their safety campaigns for the purpose of sharing messages with employees with a view to improve the employees’ life.
He emphasised that it was important to inculcate a culture of positive and caring behaviour, asserting that they also encouraged employees to be responsible for their colleagues’ safety.