Finally, there is a ray of hope for the resuscitation of the BCL mine after an agreed sale of P770.21 million was made between the liquidator and Premium Nickel Resources (PNR) Botswana.
This was confirmed by Minister of Mineral Resources, Green Technology and Energy Security, Lefoko Moagi, when answering a question in parliament by Selebi Phikwe West MP, Dithapelo Keorapetse, who had wanted an update on the BCL liquidation process.
The gross proceeds come from the sale of the Selebi and Selebi North shafts.
As it stands, PNR Botswana has committed to pay P337.87 million and the balance of P337.87 million when they start production.
According to Minister Moagi, there is an agreed three-year exploration period with an option to extend for an additional one year.
“This time is required given that the management of BCL prior to liquidation, chose not to determine the extent of the mineral resource, and PNR Botswana as an initial step must do so. Close to 100 jobs will be created immediately by PNR Botswana in terms of their prospecting and drilling programme and P300 million will be injected into the local economy,” he said.
Upon the completion of the exploration period, and depending on its success, PNR Botswana has committed to spending approximately P5 billion towards the construction of new mining infrastructure at Selebi.
This is expected to lead to further creation of employment for locals, therefore, resulting in the revitalization of the Selebi Phikwe economy.
However, the mine still remains under care and maintenance for a further six months period whilst PNR Botswana mobilizes for the development of the assets acquired.
Therefore PNR Botswana will pay BCL P69 million being the company’s contribution to BCL for the costs of care and maintenance during the exclusivity period.
Nonetheless, the liquidator is expected to sell off other assets which include the remaining Phikwe Mines comprising two shafts, smelter, concentrator, tailings dam, slag dumps, open pit, workshops, training centres and labs.
Non-mining assets such as hospitals, office blocks, housing units and a farm are also going to be disposed of with the disposal process expected to commence in March 2022.
