BCL liquidator retains 400 workers
Brian Benza | Wednesday November 2, 2016 15:34
The temporary reprieve for the 400, effectively rendered 4,600 Tati and BCL workers unemployed from October 31, 2016.
Provisional liquidator Nigel Dixon-Warren yesterday told Mmegi Business that the 400 workers will be remain employed until a decision on the fate of the two mines is made, possibly by February next year.
“The care and maintenance will involve making sure the mine shafts are dewatered as well as managing environmental risks.
“They will also carry out maintenance works of the smelter, plant and equipment as well as securing the assets and the whole site. We have also reengaged support team from human resources, finance, IT and the hospital,” he said.
The 400 workers received their new offer letters on Monday. In a letter written to workers dated October 19, 2016, Dixon-Warren of KPMG said all workers except for a few who will be required to conduct care and maintenance will be affected.
State-owned BCL and its subsidiaries were put under provisional liquidation on October 7, 2016 with government saying it could not afford the cost of about P7.6 billion needed to keep the state-owned firm running.
The Minister of Minerals, Green Technology and Energy Security, Sadique Kebonang says government has committed P60 million a month for the care and maintenance of the mine while it is under provisional liquidation.
“We have set aside P60 million a month for care and maintenance. That will not be taken care of by the liquidator.
“We need to maintain the smelter during this shutdown while we have other environmental obligations such as pumping water from underground. For now, the liquidator is dealing with creditors, debtors and suitors. Already there are many companies that have expressed interest to buy the mine,” he said.
Dixon-Warren has been tasked with making a determination whether to reorganise BCL Mine into a smaller operating unit by shutting some shafts, find a buyer or close the operations totally.
It is understood a reconfigured BCL Ltd would prioritise Selkirk, which has rich resources and advanced commissioning plans, as well as several younger shafts at BCL Mine.
However, the most valuable asset within the BCL Ltd group would be the smelter, which last year underwent a P754 million refurbishment and could be used to attract ore from outside the group.
BCL Mine has been operational since 1972 but has faced viability challenges in the past throughout those years, as the quality of its copper and nickel resource have deteriorated.
Besides weak commodity prices, the Mine has faced high operating costs as it has dug deeper – up to two kilometres below the surface – to access grades that were increasingly poor in quality.