Govt to acquire bigger stake in BCL

KENNETH BANDA
Correspondent | Tuesday September 11, 2007 00:00

'There a number of issues to be concluded before the deal is finalised. It is not clear what will transpire in terms of percentages, but changes are certain,' said the government source.

The majority shareholders in BCL mine are the Botswana government and Russian company Norilsk Nickel. The holding investment company for the mine is the Botswana Roan Selection Trust (BRST) with a stake of 85 percent. BRST operates an ore treatment and flash smelting facility through its subsidiary, BCL Ltd.

Under the new structure, the BRST would be liquidated with a larger portion of the shares going to government. The source said Norilsk and the public would retain their stake.
The source added that the shareholding changes are likely to go through, after thorough deliberations subject to approval by the BCL board.

An official at the mine who declined to be named said the issue is still being debated although in all likelihood, there would be changes in the shareholding structure at BCL.
'At this stage there is no conclusive information although the changes have been brought before the board for deliberations and possible approval,' said the official.

He added that there would little change in the management structure at the mine.
'My understanding is that the government has not been running mines and therefore I don't foresee much happening. They might be normal shuffling of personnel because of other factors, but I don't think there will be any strategic re-positioning as a result of shareholding changes,' said the official.

He added that if changes are to occur, they would be part of the normal course of events at the mine and not as a result of shareholding changes. The official said management changes can take place if the government decides to engage a company that has the necessary expertise to run the mine.

'That company can only do so (effecting changes) if it feels it needs to align its human resource with its culture,' said the official. The BCL shareholding change is reportedly subject to a number of issues being ironed out for approval by the board.

Only recently, Norilsk bought out LionOre's share in BCL, with the latter maintaining its presence in Botswana through its operations at Tati Nickel. Norilsk is renowned for its nickel operations throughout the world.