Contractor pulls plug on troubled African Copper

Mowana Mine
Mowana Mine

South African mining contractor, Diesel Power Mining Services has suspended all works at African Copper’s Mowana mine over non-payment of financial dues. African Copper engaged Diesel last year in a $113 million (P1.2 billion) hard-rock opencast mining contract spanning over 52 months.

In a response to Mmegi Business enquiries, Diesel Power’s parent company, Buildmax, said it has enforced its contractual right to suspend contract mining services as a result of their client’s inability to meet payment obligations.

“We have suspended operations due to non-payment but we are in discussions and taking legal advice for the appropriate action to mitigate losses.

Editor's Comment
Micro-procurement maze demands urgent reform

Whilst celebrating milestones in inclusivity, with notably P5 billion awarded to vulnerable groups, the report sounds a 'siren' on a dangerous and growing trend: the ballooning use of micro-procurement. That this method, designed for small-scale, efficient purchases, now accounts for a staggering 25% (P8 billion) of total procurement value is not a sign of agility, but a 'red flag'. The PPRA’s warning is unequivocal and must be...

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