TNMC re-opening delayed
Chakalisa Dube | Tuesday December 19, 2017 18:00
The news will not be well received by the mine’s former employees, residents of Francistown and surroundings who have been eagerly waiting for the mine to resume operations. TNMC played a vital role in the economy of the city prior to its liquidation.
“We had put the April 2018 time frame (as the date TNMC was supposed to resume operations) because we anticipated that the potential buyer of the mine will put a firm offer (which would result in the conclusion of the sale) before the end of the year. Last week the potential buyer put an offer, which he wanted us to present to the creditors.
“We declined the offer because it was not that convincing. We now have to continue negotiating, meaning that the mine will not open in April as planned,” said the liquidator of the mine, Nigel Dixon-Warren yesterday.
Owing to the recent developments, Dixon-Warren said he could not speculate as to when the mine will re-open. “I think in January or sometimes early next year, that is when I will be able to speculate or put a definite date as to when the mine will re-open.”
He also highlighted that the exclusivity agreement signed with the potential buyer of the mine has expired.
The exclusive arrangement gave the prospective buyer some protection from another party from outbidding him. The agreement signed in October was to last until the last quarter of the year according to Dixon-Warren.
“We have already informed the bidder who we have been in talks with that going forward we will not be solely negotiating with him. We have three companies that have in the past made enquiries but were barred from submitting bids because of the exclusivity deal. We will be opening talks with them in January.”
Meanwhile, last week Thursday the High Court confirmed through a notice that BCL Mine in Selebi-Phikwe will be placed under final liquidation.
The court indicated that TNMC would remain under provisional liquidation until April next year. TNMC is still deemed a viable business entity than BCL mine.
The liquidator of the mine has also often maintained that his priority is to sell TNMC as conditions of its sale are less complex because it is under provisional liquidation.
The two mines that belong to the BCL Group were liquidated in October last year due to cash flow problems. At TNMC 705 employees directly lost their jobs while at BCL over 4,000 people lost their jobs. Companies servicing the two mines also shed jobs.
t of the 39 companies, about 20 of them are 100% citizen-owned while 19 are foreign-owned. He said they have not contracted any company to provide internet services in the buildings.
He said the number of youth companies that would occupy office space at the new state of the art BIH park buildings would be 250 with each company occupying 10 square metres with additional access to meeting places and boardrooms. Madigele said the selection would be based on the scalability, social impact, marketability, technical aspect and originality of their businesses adding that the companies will be charged a minimal rent of P2,000 per month. Recently, the BIH announced that they are expecting a total investment worth P1.5 billion in the next three years through investments of innovation and technology companies setting up shop in the Science and Technology Park.