BCL, Tati workers to know fate in four months
Mbongeni Mguni | Wednesday October 12, 2016 17:19
BCL Mine, which closed on Saturday, directly employs 4,300 people, while Tati Nickel Mine, its subsidiary, closed on Monday and employs close to 700 workers.
The latest revelations fly in the face of initial reports over the weekend suggesting that workers at the Selebi Phikwe and Francistown operations would be paid for at least 18 months, even as their operations were closed.
Yesterday, BCL Ltd chair, Khaulani Fichani told Mmegi on the sidelines of a press briefing that the liquidator would submit his report by February, indicating the fate of the troubled base metals group.
“It all depends on what the liquidator recommends. If his report recommends that we totally shut down the mine, then everyone will be retrenched and they will be paid off their benefits. If he recommends shedding of some of the operations, all the workers that are not in the new structure would be made redundant and paid off,” he said.
Mmegi: So does that mean the workers are only guaranteed full salaries for the next four months?
Fichani: “Yes, but we don’t want to say that because if the liquidator completes his job before the envisaged four months, then the process will kick in immediately”.
Minerals, Green Technology and Energy Security permanent secretary, Kgomotso Abi also said the liquidator would decide the fate of the mines over the next four months.
The High Court has appointed KPMG’s Nigel Warren-Dixon as liquidator, following an application by government for provisional liquidation of BCL Ltd over the weekend.
“The liquidator is in charge and he’s the one who will take decision on the future of the mine,” Abi said.
“He will be in consultation with the shareholders and management on whatever he decides.” According to the officials, it is possible Warren-Dixon may decide to reorganise BCL Mine into a smaller operating unit by shutting some shafts, or opt to close the operations totally, both of which decisions will have an immediate impact on workers.
The P200 million reopening of Selkirk Mine, which was Tati Nickel’s lifeline, has also been suspended following the new developments. Tati’s other mine, Phoenix, closed in December 2015, having reached the end of its lifespan.
“The liquidator will look at the operations and say what can be salvaged,” Abi said.
“He will look at whether it’s possible to reconfigure BCL Mine or whether it’s beyond redemption.
“There are several shafts that can be worked at a profit, while others maybe not so.”
It is understood a reconfigured BCL Ltd would prioritise Selkirk, which has rich resources and advanced commissioning plans, as well as several younger shafts at BCL Mine.
However, the most valuable asset within the BCL Ltd group would be the smelter, which last year received a P754 million refurbishment and could be used to attract ore from outside the group.
Should the liquidator finalise the reorganisation, jobs that do not fit into the new structure would be shed, officials said.
The liquidator is also expected to hunt for a potential partner to government in BCL Ltd, which would allow the state to remove part of its 100% shareholding.