GABORONE – The Selebi-Phikwe town council has pleaded with the cabinet sub-committee set up to probe the feasibility of continued mining operations at the ailing Bamwangwato Concession Limited (BCL) mine to ask the government to consider financing the mine instead of taking up the closing down of it, as doing so would destroy the regional economy.
The cabinet sub-committee, which was set up three months ago following revelations that the country’s top nickel miner was reeling from a P3-billion debt amid dwindling underground nickel ore resources and rising operational costs, is set to give recommendations to government on whether to close down or continue mining operations.
Addressing members of the cabinet sub-committee during their site visit on Wednesday, Selebi-Phikwe mayor Amogelang Mojuta said they would make recommendations seeking to prolong the life of the mine.
“We still believe that the future of this town and that of the mine is very bright. We may be in deep trouble today, but it does not mean that we will remain forever in the deep,” Mojuta said.
Four months ago, the government, which is the principal shareholder, was forced to guarantee a $100-million loan facility to save the mine from imminent collapse.
Cabinet sub-committee chairperson Nono Molefhi noted that the mine had, over the past few years, been fully funded by the government after failing to attract joint venture partners due to its huge debt and future viability problems arising from dwindling ore reserves after 50 years of continuous mining.
BCL Mine manager Dan Mahupela said although the mine was indeed broke, it had used its minimal resources to stay open.