The return of Mowana Mine
Chakalisa Dube | Friday February 17, 2017 11:17
The closure of Mowana led to 400 direct and indirect job losses.
Mowana, which prior to its closure was owned by African Copper, a subsidiary of ZCI a Johannesburg, listed company, started operations in 2008, but often experienced serious cash flow problems.
Usually when something of great economic value in a given area dies, the economy of that area follows suit and withers. Dukwi was no exception.
After the December 2015 liquidation, workers at the Mine and its contractors departed to other areas in search of opportunities. The economies of Dukwi, Mosetse and surrounding villages began a spectacular decline. Houses, which villagers rented to miners, were left to rot.
Businesses, among them restaurants and hardware that serviced the Mine and its employees, were left to crumble. Some instantly ceased operations while others shed workers in a bid to remain afloat.
With little mining activity, the village economy turned to the few tourists who use the Dukwi-Mosetse road as a gateway to the tourist destinations in the Chobe and Northwest districts. Truck drivers who transport goods between Zambia and Botswana also helped stimulate the economy.
After Mowana’s closure, residents of the villages remained highly optimistic that the Mine will restart operations. Their optimism was also helped by the fact there were several reports suggesting the Mine was garnering much interest from investors.
Residents’ long held optimism finally bore fruits in December last year when it was announced that a South African firm, Pen Min Holdings had bought the Mine for a whopping P89 million. Pen Min acquired the Mine through its locally registered enterprise Leboam Holdings, which is wholly owned by Cradle Arch Investments.
Mowana is now expected to resume full operations next month. Already there are some workers who have started work in preparation for resumption of production.
This week Mmegi visited the village and it bears the hallmarks of an area that is in a resurgent mood.
It is around lunchtime and a handful of mineworkers can be seen buying food from nearby restaurants clad in their reflective overalls.
Topics among the youth who have formed circles around the village shopping complex revolve around the prospects that will be brought by the Mine.
Cars and trucks carrying mining equipment are also a regular site in the village, a clear indication that Dukwi is slowly springing back to life. Some villagers are also renovating their houses in anticipation of renting them to junior mineworkers.
As Mowana is slowly showing signs of recovery, residents and businesses say they are eagerly waiting to tap into job and business opportunities that will be brought by the Mine.
Twenty six-year-old Tirelo Ngache is one of those eagerly waiting for an opportunity to secure a job at Mowana. Ngache completed a level one ACCA accounting certificate but under the circumstances he is willing to take any job that comes his way.
He has not been employed since he completed his studies at Botho University in 2015.
“It has been difficult just sitting at home doing nothing. If I do not get a job, my plan is to open a business, which will be about printing invoice and receipt books. I am confident that should I open such a business it could be a success because many companies servicing the Mine use such services,” he says.
Ngache and other youth in the village have been constantly checking newspapers and social media so that they do not miss job adverts at the Mine.
Siyabonga Jele, 28, was among the hundreds of employees who lost their jobs when Mowana closed shop, having worked for approximately a year as an assistant electrician. He is hopeful that he will get a job when the Mine re-opens.
“It has been hard to survive without a stable income. I operate a car wash with a friend but the income is not enough to meet my demands. It’s just a pastime,” says the father of one.
Businessman Sipho Mlalazie who owns Harvest Investments, says his business has already started benefiting from the re-opening of the Mine. He says his business started doing well in December last year when mineworkers began settling in.
“The Mine has already issued my restaurant a tender to supply its employees with food for lunch on a daily basis. I also do laundry services for the Mine guesthouse situated in Mosetse village. The prospects of my business really look good. I expect things to be better when the Mine resumes full operations,” he said.
Member of Parliament for the area Polson Majaga has a picture of optimism that the Mine will revive the economy of Dukwi and its environs.
“So far the Mine has employed many youth in the village and its surroundings as casual labourers. Some people have already started occupying rental houses in the village and we expect that there will be more occupancy in a few months to come,” he says, fresh from a visit to the Mine.
Majaga adds that the business community’s confidence in the village is also rising.
“I have interacted with many businesspeople from Dukwi, Mosetse as well as surrounding areas and they have been preparing their ventures to fully benefit from the Mine.
“You can even see that those who are into real estate have already started renovating their properties in order to benefit from rental fees when the Mine resumes production.”
The area MP is looking forward to Mowana Mine’s corporate social responsibility interventions, previously a strong area for the Mine when it operated.
Mowana Mine consultant, Thuso Dikgaka recently told Mmegi that the Mine was busy recruiting in preparation of its reopening.
The majority of employees who have been hired at the Mine so far are upper and middle managers who commute by bus daily from Francistown to Dukwi.