Business

BMWU energy firm put on hold

Chakalisa Dube | Tuesday October 29, 2024 10:51

Thinking big: The BMWU says establishing its own private company would boost the revenues of the minerworkers’ organisation beyond subscriptions PIC: MORERI SEJAKGOMO
 
Thinking big: The BMWU says establishing its own private company would boost the revenues of the minerworkers’ organisation beyond subscriptions PIC: MORERI SEJAKGOMO

BMWU General Secretary Mbiganyi Gaekgotswe told BusinessWeek that progress has been slow in getting Leru off the ground.

In 2022, BMWU launched Leru, a 100% citizen-backed firm under the ownership of Badirakhumo Investments, a joint venture between the union and Southern African Stones (Pty) Ltd, a private entity. The two companies enjoyed equal shareholding in the energy company.

At the time, the BMWU described Leru as an entity aimed at providing solutions in the oil and gas sector, as well as technologies for green energy, clean coal, and other renewables as well as a mining training school. Leru plans aimed to supply 10% or more of local mines’ fuel requirements, supplying lubricants, Liquefied Petroleum Gas, industrial gas as well as medical-grade oxygen energy. The company also said that it was targeting the servicing of mining companies in the country.

However, this week Gaekgotswe said that that nothing much has been done to ensure that the company starts operations.

“The company is still at an incubation stage,” he said. “We are still working on refining its strategic purpose. “Once everything has been finalised, we will make a proper announcement. “It is however paramount to emphasise that the union’s goal is to broaden its revenue base through Leru to reduce reliance on member subscriptions.”

Various sources have told BusinessWeek that the launch of the company has stalled because the union ended its relationship with Southern African Stones early this year, forcing the business model and processes to be reconfigured. The reason why the relationship between the two entities ended is however yet to be established.

“I do not want to touch into our relationship with other stakeholders but what I can confirm is that BMWU is the main driver behind Leru Energy,” Gaekgotswe said in response to BusinessWeek questions. “The union remains committed to the long-term vision of making Leru a leading energy solution provider in the region.”

The company previously said that it aims to have gained significant market traction by 2026, at which point it wanted to have penetrated the African market. It had also indicated that by then, it intended to have established itself as an energy and mining institute admitting trainees from across Africa as well as transitioning its products from coal to gas/liquids, supplying the regional market.