Resurgence of Mowana Mine
Ryder Gabathuse | Friday January 13, 2017 16:00
The mining consultant said Leboam Holdings, the new owners of the Dukwi-based copper mine have heightened activity at the Mowana Mine operation and preparations are advanced so much that operations could even start in a few months. On site mine workers anticipate operations to start in earnest next month. Leboam Holdings late last year acquired Messina Copper assets at a whopping P89.7 million.
“A few people are on site preparing for mining to commence in earnest,” said Dikgaka who was previously a mine manager at the Tati Nickel Mine which now has been placed under liquidation. He emphasised that test runs will be done to test the efficiency and capabilities of the plant ahead of the busy mining days ahead.
At the moment, there is massive recruitment of staff to fill available vacancies so that the mine operation could be up again. There is also massive acquisition of some requisite assets. “We are currently dealing with applications to fill various vacancies that are available on site. This is a process that we expect to go on until the mine is up and running.”
Once preparations to resuscitate the Mowana Mine are complete, Dikgaka indicated that there are plans to also pay attention to the Thakadu operation near Matsitama village, which was also placed under care and maintenance when Messina Copper was finally liquidated in November 2015. The closure of the Mowana Mine in 2015 left over 400 miners directly and indirectly jobless.
Mowana Mine had boosted rural economies of Dukwi, Mosetse and other villages within its environs of the mine, economically through the incessant activity.
Some junior employees of the mine were accommodated by the villagers whilst Francistown, which lies a few kilometres from the mine also benefited immensely through accommodating the mine’s senior staff and executives. “Some old friends of the Mowana Mine like restaurants and lodgings were this week excited about the ongoing activity at the mine as they stand to benefit from the mine that was placed under care and maintenance,” said Dikgaka.
The excitement is that Francistown, which has been hardest hit by the closure of the Tati Nickel Mine and its contracted company Aveng Moolmans will have life again.Between Aveng Moolmans and Tati Nickel Mine closures’ over 1,000 workers lost jobs and this has directly affected the city’s economy as the retail, estate, banking and other sectors have been hardest hit. The history of the African Copper Mine financial troubles is well documented. In March 2015, African Copper had a multi-million-pula debt to its major shareholders, ZCI.
The mine’s troubles were compounded by the dwindling commodity prices. It was not surprising that in November 2015 African Copper ceased operations. African Copper’s debt to a contracted company Diesel Power amounting to about P47 million forced the latter to apply for the former’s liquidation. Botswana Mine Workers Union (BMWU) vice president Norman Kelaotswe said yesterday that the union is not officially aware of the latest developments at Mowana.
Kelaotswe said whilst BMWU had agreement with the previous investor at Mowana Mine to give priority to workers who were affected by the liquidation process, they unfortunately have no agreement with the current investor at the mine.
“As a union we have just overheard that the current investors at Mowana might open the mine in three weeks time or so. We take it as a wake up call to check what they really have in store for us,” said Kelaotswe yesterday.