Minergy indefinitely suspends operations at Masama

Grounded: Operations have been suspended at Masama due to cash flow troubles. The Mine kicked off in 2019 and had enjoyed a bumper 2022 after Russia’s invasion of Ukraine raised global coal prices PIC: MINERGYCOAL.COM
Grounded: Operations have been suspended at Masama due to cash flow troubles. The Mine kicked off in 2019 and had enjoyed a bumper 2022 after Russia’s invasion of Ukraine raised global coal prices PIC: MINERGYCOAL.COM

Minergy Ltd has indefinitely suspended operations at its Masama Mine in Medie, saying coal prices have fallen by 33% since mid-December affecting the company's cash flows.

CEO Morne du Plessis confirmed the latest developments in a statement released this evening. The move will affect more than 300 workers employed by mining contractor Jarcon Opencast Mining Botswana.

"As with many businesses, when structural changes occur in a market and external demand factors influence price, operational adjustments need to be made to bring operating costs in line," he said.

Editor's Comment
Time to end informal sector fronting

The Francistown Umbrella Informal Sector chairperson, David Mbulawa, has highlighted this growing concern, revealing that many local traders are using their licences to facilitate the entry of foreign goods into the market at a fee.Fronting undermines the very fabric of our local economy. It allows foreign traders to exploit the system designed to benefit Batswana, using local licences to cross borders and sell goods at prices intended for local...

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