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Norilsk walks out of BCL P2.7 billion deal

Russian mining giant Nornickel, also known as Norilsk Nickel —the world’s largest refined nickel and palladium producer has opted out of a 2 year tussle with collapsed mining group BCL Limited. The two parties have been in dispute, in and out of the courts of law, where Norilsk was demanding over P2.7 billion for a contract signed in 2014 relating to the sale of its African assets to government wholly owned BCL.

The agreements included a 50 percent stake in South Africa’s Nkomati mine in Mpumalanga. On Tuesday Nornickel announced a decision to terminate the contract on what it terms BCL’s “material breaches of the contract”. The BCL –Norilsk emanates from Nornickel attempts to sell its African assets. Norilsk has been operating, on 85 percent ownership, Tati Nickel mine located east of Francistown.

Tati was acquired by BCL but no payment was made to Nornickel. BCL also acquired Nornickel’s 50 percent share in the Nkomati nickel mine and the contacts were signed in October 2014. The deal which BCL Group entered into through its wholly owned subsidiary BCL Investment to diversity the company’s portfolio became unconditional in September 2016 as BCL failed to perform its obligations to purchase the shares and pay the purchase price.

 During that time the company was struggling financially and relying on government bailout. In October 2016, Botswana Government applied to the High Court of Botswana to place BCL entities into provisional liquidation. Ever since then, Nornickel, BCL and the Botswana government have been in a bitter dispute over more than US$277 million ( P2.9 billion) owed to Nornickel. BCL has since been dissolved into final liquidation under the watch of Nigel Dixon Warren.

Michael Marriott, Nornickel Africa’s Chief Executive, says Nornickel’s termination of the agreement means that it will no longer be requiring the BCL Group to purchase its interest in the Nkomati joint venture, of which African Rainbow Minerals owns the other 50 percent.
African Rainbow is owned by South African billionaire Patrice Motsepe. “We will continue to seek damages from BCL for the significant loss Nornickel has suffered as a result of BCL’s failure to honour its obligations. We will also continue our claim against the Government of Botswana in respect of its involvement in the reckless trading of BCL,” he said.

 Marriott further pointed out that Nornickel delivered on all its obligations to the BCL Group. “We are dismayed by their unwillingness to engage in a constructive dialogue with a foreign investor. We have made efforts in good faith to arrive at a compromise, but they have so far proved futile. Sadly, different branches of Botswana’s government and BCL’s representatives failed to agree on the approach to resolving the dispute, and in spite of the announcements by top public officials, the dispute has not been settled,” explained Nornickel boss.

Macheal Marriot said the claims Nornickel are pursuing now are aimed at recovering the significant loss the company has suffered as a result of the contract breaches by BCL and Botswana Government. He further underscored that the termination of the agreement will enable his company to pursue its own strategy for its African assets. This strategy according to Marriot entails focusing on the company’s key assets in Russia.

He said further decisions regarding Nkomati will be based on market conditions and the asset development strategy. On the other hand BCL Liquidator Nigel Dixon Warren told WeekendPost on Thursday that termination of the contract has a little or no bearing in their dealings as a company under liquidation. “We never agreed with the contract, that is why we were in dispute, we don’t agree to what they were demanding” he said.

Dixon Warren however said Nornickel‘s claim to seek damages from BCL for the significant loss it suffered as a result of BCL’s failure to honour its obligations might be given an ear by the Court of Appeal.  “We understand they will approach the court of appeal and if they win, we will then register them as creditors like any other creditor demanding a share from the company‘s assets subject to its value after liquidation is complete,” he said.

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BDP decides Balopi’s fate

22nd November 2021
Balopi

The Botswana Democratic Party (BDP) Central Committee (CC) meeting, chaired by President Dr Mokgweetsi Masisi late last month, resolved that the party’s next Secretary-General (SG) should be a full-time employee based at Tsholetsa House and not active in politics.

The resolution by the CC, which Masisi proposed, is viewed as a ploy to deflate the incumbent, Mpho Balopi’s political ambitions and send him into political obscurity. The two have not been on good terms since the 2019 elections, and the fallout has been widening despite attempts to reconcile them. In essence, the BDP says that Balopi, who is currently a Member of Parliament, Minister of Employment, Labour Productivity and Skills Development, and a businessman, is overwhelmed by the role.

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BDF-Namibians shootings autopsy report revealed

22nd November 2021
BDF

The Botswana Defence Force (BDF)-Namibians fatal shooting tragedy Inquest has revealed through autopsy report that the BDF carried over 800 bullets for the mission, 32 of which were discharged towards the targets, and 19 of which hit the targets.

This would mean that 13 bullets missed the targets-in what would be a 60 percent precision rate for the BDF operation target shooting. The Autopsy report shows that Martin Nchindo was shot with five (4) bullets, Ernst Nchindo five (5) bullets, Tommy Nchindo five (5) bullets and Sinvula Munyeme five (5) bullets. From the seven (7) BDF soldiers that left the BDF camp in two boats, four (4) fired the shots that killed the Namibians.

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Gov’t confused over Moitoi’s UN job application

22nd November 2021
VENSON MOITOI

The former Minister of Foreign Affairs and International Cooperation, Pelonomi Venson-Moitoi’s decision to apply for the positions of United Nations Special Representative of the Secretary-General (SRSG) and their deputies (DSRSG), has left the government confused over whether to lend her support or not, WeekendPost has established.

Moitoi’s application follows the Secretary-General’s launch of the third edition of the Global Call for Heads and Deputy Heads of United Nations Field Missions, which aims to expand the pool of candidates for the positions of SRSG) and their deputies to advance gender parity and geographical diversity at the most senior leadership level in the field. These mission leadership positions are graded at the Under-Secretary-General and Assistant Secretary-General levels.

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