Government proposes debt for equity deal for BCL

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The minister of Mineral Resources, Green Technology & Energy Security, Sadique Kebonang says the Botswana government has offered its state-owned BCL Mine Ltd to the Emirates Investment House (EIH) for a token price of $1; in a deal that will see the Emirati firm taking over the mine’s debts.

Since being placed under provisional liquidation in October for an initial period of four months, the High Court has granted the BCL two extensions, as the government negotiated with potential buyers. BCL Mine was placed under provisional liquidation after its creditors demanded almost 1- billion pula ($96 million).

“We have signed a Memorandum of Understanding (MOU) with EIH. The proposal is for them to take up all of BCL debts including Nkomati for a token fee,” Kebonang said.

BCL employed more than 5,000 people directly before it was placed under provisional liquidation in October and has been the lifeblood of the Selebi Phikwe mining town of more than 50,000 residents.

Reference: Reuters

5 months ago