Maintenance costs scare potential Phikwe shafts buyers

Lefoko Moagi says maintenance costs scare potential Phikwe shafts buyers
Lefoko Moagi says maintenance costs scare potential Phikwe shafts buyers

Government says the high maintenance cost of Number 3 and South East Extension mine shafts at former BCL copper and nickel mine in Selebi-Phikwe is scaring away possible buyers. Speaking in Parliament, Minerals and Energy minister, Lefoko Moagi said P6.3 million is spent per month on the maintenance of the shafts.

He was answering a question from Member of Parliament for Selebi-Phikwe West, Dithapelo Keorapetse, who had asked the minister to confirm if there were any companies that had shown interest in purchasing the mine shafts. "Confirm whether companies have showed interest in the Phikwe shafts, Number 3 and South East Extension," Keorapetse had put it to Moagi. In response, Moagi highlighted the challenges facing the potential sale of the shafts. "Low confidence level in the remaining ore bodies and the exorbitant cost of dewatering, which amounts to a staggering P6.3 million per month have made it difficult to attract a viable buyer," the minister said.

However, Moagi revealed that an offer has been received from a local company. "We received an offer from Premium Nickel Resources Botswana (PNRB) for the remaining ore bodies. "The offer is currently awaiting regulatory approval, although it does not include the purchase of the mining assets," Moagi said. In addition to PNRB, the minister said several other companies have also expressed interest in the mine shafts. "Other companies like Otokom Technology (Pty) Ltd, Associated Africa Nickel, Runicata Young Engineering Contractors, Qora Ltd, and Ascon Energy Pty Ltd have shown interest," he said.

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