BCL: How the Arabs came, saw, and left
News
By Aubrey Lute
This week the Minister of Mineral Resources, Green Technology and Energy Security, Advocate Sadique Kebonang briefed Members of Parliament on the latest regarding the status of the Liquidation of BCL Limited and its subsidiaries (the BCL Group).
From his statement the Minister shared the steps that led to the liquidation of BCL as well as the failed attempt to entice Emirates Investment House (EIH) to acquire BCL. Kebonang indicated that Emirates Investment House (EIH) had shown interest in acquiring the BCL Group. “I met with representatives of EIH both in Botswana and also Dubai where they are based. My visit to Dubai was in my capacity as the Political Head of my Ministry and a Minister in Government, to assure this entity that should their interest eventually result in investment, there is security of tenure in terms of Botswana laws. I was accompanied on the visit by the Director of Mines in my Ministry,” he said.
The minister said the timing of the visit to Dubai was critical as he believed he had to do so before the return date to the High Court, on the 7th February 2017. He said the outcome of the visit informed the application for the extension of the provisional liquidation period the first time. According to Kebonang, after further engagements with EIH, the Government, through the Ministry, entered into a Heads of Agreement which broadly defined Government’s undertaking on the terms under which the BCL Group could be sold to EIH.
“Any subsequent agreement on selling and purchasing was to be subject to a positive due diligence, an agreement with the Shareholder, Minerals Development Company Botswana, and on the settlements of debts to the BCL Group creditors,” the Minister shared.
Kebonang further indicated that the Provisional Liquidator facilitated access to site and to information in order to allow EIH to conduct the due diligence. However, EIH made no offer after the extension of the provisional order on the 15th May 2017 and resulting in lapse of exclusivity granted to EIH by GRB to conduct due diligence.
Furthermore there was no offer at the return date of the 15th June 2017 to purchase the BCL Group, thus a decision was taken to place BCL under final liquidation. Kebonang said the return date of Tati and the BCLI, as already indicated, was extended to the 14th December, 2017 pending discussions with interested buyers. “I am aware of the interest of EIH in making investments in other sectors of the economy of Botswana such as agriculture and transport; on these they are in direct contact with the relevant entities.
The Provisional Liquidator has also undertaken efforts to identify potential interested parties, a number of which have expressed interest primarily in Tati Nickel Mining Company. The Provisional Liquidator is pursuing these expressions of interest. The Provisional Liquidator received some expressions of interest from potential buyers of the BCL and Tati Nickel Mining Company assets prior to the return date of the 15th June 2017,” Minister Kebonang pointed out.
Gov’t still wants to sell BCL
Nevertheless, Government still wants to sell BCL, the minister said after the return date of 15th June 2017, the Provisional Liquidator placed advertisements in local and international media inviting all potential buyers of BCL and Tati assets to submit their expressions of interest. “The Provisional Liquidator has set up a data room accessible to all interested parties to assist them in the preparation of their indicative offers. The closing date for these adverts is 01st September 2017. After this, the Provisional Liquidator will collate all expressions of interest received and short list the most suitable submissions. These will then be invited to present final proposals for the purchase of BCL and Tati assets. The potential buyers will have to conduct their own due diligence activities prior to presenting their final proposals,” he said.
In addition, Kebonang shared that Government has also received a proposal from a Dubai based company seeking to re-process the BCL slag dump to recover metal values and to manufacture steel and cement products from these. He stated that the MDCB has been tasked to evaluate this proposal and advise government on the proposal and further advise government on the viability of the proposal. “A viable proposal will then be referred to the Provisional Liquidator for his decision.”
Dispute with Norilski Nickel
Meanwhile the Minister also updated Members of Parliament on the dispute between the BCL Investments and Norilski Nickel on the Nkomati share purchase agreement (SPA). He observed that the dispute has been a source of negative publicity on Botswana and has led to litigation against government. He indicated that Government has initiated action through MDCB to resolve the Nkomati SPA issue amicably. He observed that due diligence and valuation exercises are being carried out to establish the value of the Nkomati assets as a basis for negotiating a commercially acceptable solution to the parties involved. The minister said the due diligence and valuation exercise are expected to conclude by 15th August 2017 and negotiations with Norilski will follow thereafter.
Life after BCL
Minister Kebonang shared that the Government of Botswana is actively pursuing options of life beyond BCL mining operations for the SPEDU Region. He said as part of the Government effort to ensure the sustainability of the SPEDU Region beyond the life of BCL Mines, the Selebi Phikwe Economic Revitalisation Program has been formulated. He said the Programme is driven by the Ministry of Investment, Trade and Industry (MITI) and has a dedicated Coordinator. According to Kebonang MITI has formulated the SPEDU Revitalisation Strategy with a package of fiscal and non-fiscal incentives, launched on the 6th March 2017 in Selebi Phikwe.
BCL Ltd was eventually put under final liquidation on the 15th June 2017. Tati Nickel Mining Company and BCL Investments continued to be under provisional liquidation with the return date having been extended to the 14th December 2017. As a consequence of the provisional liquidation, the assets of the BCL Group are under the control of the Provisional Liquidator, who is accountable to the creditors and the High Court. Minister Kebonang indicated that the costs of the Provisional Liquidation have been met from funding provided by the Government of Botswana. The amount already disbursed by the Provisional Liquidator amounts to P832 Million, out of a total budget provision of P844 million, up to April 2017. The major costs to be met from the funding are the Care and Maintenance Costs and terminal benefits payments for the former employees.
“ The terminal benefits paid to the former employees are as defined under our employment laws for an entity under a liquidation process. These terminal benefits would normally only be paid at the end of the liquidation process when the claims of the creditors are settled. It was decided however that employees should not wait indefinately, and arrangements were made for the payments to be made and the terminal benefits amount to be ceded to Government.” On the 9th October 2016, BCL Limited and two of its subsidiaries, BCL Investments and Tati Nickel Mining Company, (the BCL Group), were placed under provisional liquidation. The application for provisional liquidation was prompted by continued loss making of the BCL Group, on account of the depressed metal prices and operational challenges.
The financial situation of the BCL Group had not improved in spite of an injection of cash amounting to USD100 million from a facility provided by Barclays Bank of Botswana, guaranteed by the Government of Botswana, which was disbursed to BCL in April 2016. At the time of provisional liquidation, projections by Management were that by March 2017, a further P2 billion cash injection would become necessary in order to continue the operations. Due to budgetary constraints and competing national needs, Government did not have the financial resources to make further cash injections into the BCL Group to sustain the mining and related operations.
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The newly elected Botswana Movement for Democracy (BMD) Executive Committee led by Pastor Reverend Thuso Tiego has declared their disapproval of homosexuality saying it is anti-Christianity and Botswana culture.
Speaking at a Media Briefing this past week, BMD President Tiego said Botswana has been a country that respects culture hence endorsing homosexuality will be catastrophic.
“Our young generation grew up being taught about types of families, if homosexuality is passed, at what age will our children be introduced to homosexuality?” he rhetorically asked.
He continued: “If we are going to allow homosexuality then the next day, another person will come and say he wants to practice bestiality. What are we going to do because we have already allowed for this one (homosexuality) and at the end it will be a total mess.” Bestiality is sexual relations between a human being and an animal
This according to Tiego will give those people an opportunity thus disrupting known Botswana beliefs. He however dismissed any notion that the decision to condemn homosexuality should not be linked to the top two of the committee who are men of cloth. “This is a decision by the whole committee which respects the culture of Botswana and it should not be perceived that because we are clergymen we are influencing them, but even if we do, politics and religion are inter-related.”
Of late the church and the human rights organization have been up in arms because of the high court decision to allow for same sex marriages. Ministries ganged up, petitioned parliament and threatened to vote out any legislator who will support the idea. The ruling party, BDP which was to table the amendment in the constitution, ended up deferring it.
BMD President further revealed that he is aware of what really led to the split of the party and he is on course to transform as they approach 2024 elections.
“There are so many factors that led to split of party amongst others being leadership disputes, personal egos and ambitions, toxic factionalism and ideological difference just to mention a few, but we are transforming the party and I am confident that we will do well in the coming elections.
In addition, Tiego is hopeful that they will take the government as they feel it is time to rebrand Botswana politics and bring in fresh blood of leaders.
He further hinted that they are coming with positive transformation as they eye to better the lives of Batswana.
“When we assume government, we promise to be transparent, free and fair electoral processes and encourage pluralism as way of getting back to our roots of being a democratic country as it seems like the current government has forgotten about that important aspect,” Tiego explained.

Reeling under the increasing barrage of stinging international sanctions, the isolated North Korean regime is reportedly up to its old trickery, this time in a more complicated web of murky operations that have got the authorities of five southern African countries at sixes and sevens as they desperately try to tighten their dragnet around Pyongyang’s spectral network of illicit ivory and rhino horn trade.
It is an intricate network of poaching for elephant tusks and rhino horns that spans Botswana, Mozambique, South Africa and Zimbabwe, with the main sources of the contraband being Botswana and South Africa.
The syndicate running the illegal trafficking of the poached contraband is suspected to be controlled by two shadowy North Korean government operatives with close links to one Han Tae-song, a disgraced North Korean career diplomat who, while serving as the second secretary at his country’s embassy in Harare, Zimbabwe, was expelled in 1992 after he was fingered as the mastermind behind a similar illegal ring that was busted by the country’s authorities.
This disturbing tale of malfeasance by North Korean state actors is as real as it gets.
Recent reports indicate that authorities in the source countries are jointly battling to plug holes created by the shadowy syndicate which allegedly has on its payroll, park rangers, border officials and cross-border truck drivers.
Even more disturbing are allegations that some wildlife officials are conniving in misrepresenting numbers of retrieved rhino horns and ivory from poachers and getting kickbacks for their involvement in the pilfering of ivory and rhino horns from government stockpiles especially in South Africa.
In a shocking and well-orchestrated movie-style heist in South Africa, thieves in June this year made off with 51 rhino horns after breaking into a very secure government stockpile facility of the North West Parks Board (NWPB).
While some suspects from South Africa and Malawi were nabbed in a government sting operation, none of the rhino horns – 14 of which were very large specimens that can fetch serious money on the black market – were recovered.
A report of the heist said the police were lethargic by eight hours in responding to an emergency alert of the robbery which was described by North West police spokesperson Brigadier Sabata Mokgwabone as “… a case of business robbery…”
Thabang Moko, a security analyst in Pretoria says the military precision in the burglary, delays in police response, and failure to recover the stolen rhino horns is dubious. “This development lends credence to suspicions that some government officials could be part of a shadowy syndicate run by foreign buyers of rhino horns and ivory,” Moko says.
It is understood that in light of the rhino horns heist in North West, South Africa’s Minister of Environment, Forestry and Fisheries, Barbara Creecy on 1 August, shared her concerns to her counterparts in Botswana, Zimbabwe and Mozambique calling for greater regional cooperation to combat the illegal wildlife trafficking which she believes is being masterminded by the Far East’s buyers of the ill-gotten horns and ivory.
It is believed that foreign kingpins involved in perpetuating the illegal trade are mainly North Koreans vying against Vietnamese and Cambodian buyers in the quest for dominance of the illicit trade in rhino horns and ivory sourced from southern Africa.
Creecy’s concerns, which she also shared to South Africa’s state-run broadcaster SABC, echoed Moko’s worries that the North West heist may have been an inside job.
According to Creecy, there was a need for the International Criminal Police Organisation (Interpol)’s greater involvement in joint investigations by affected countries as there were indications of ‘local knowledge’ of the North West job and that syndicates, “Higher up the value chain actually recruit park rangers to the illegal ivory trade network.”
Botswana’s Environment and Tourism Minister Philda Kereng is on national record admitting that poaching was a source of headaches to her government, especially considering that the daring poachers were making successful incursions into secure areas protected by the Botswana Defence Force (BDF).
This came after poachers gunned down two white rhinos at the BDF-protected Khama Rhino Sanctuary in August 2022 despite Kereng putting the time frame of the killings between October and November 2022.
Kereng hinted at the existence of Asian controlled syndicates and acknowledged that the surge in poaching in Botswana is driven by the “increased demand for rhino horn on the international market” where in Asia rhino horns are believed to be potent in traditional medicines and for their imagined therapeutic properties.
Botswana has in the past recorded an incident of a group of an all-Asian reconnaissance advance team teams being nabbed by the country’s intelligence service in the Khama Rhino Sanctuary.
Masquerading as tourists, the group, with suspected links to North Korea and China, was discovered to be collecting crucial data for poachers.
Also according to reliable information at hand, an undisclosed number of wildlife parks rangers were arrested between September 2022 and January this year, after information surfaced that they connived in the smuggling of rhino horns and ivory from Botswana.
One of the rangers reportedly admitted getting paid to falsify information on recovered horns and ivory which were smuggled out of the country through its vast and porous eastern border with South Africa, and making their way to their final destination in Mozambique via back roads and farmlands in South Africa and Zimbabwe.
“We are aware that in the past year, some rhino horns and ivory illegally obtained from Botswana through poaching activities and shady deals by some elements within our wildlife and national parks department, have found their way out of the country and end up in Mozambique’s coastal ports for shipment to the Far East,” a Department of Wildlife and National Parks (DWNP) source says.
Independent investigations reveal that two North Korean buyers, one of them only identified as Yi Kang-dae [confirmed to be an intelligence official in the country’s state security apparatus], acting on behalf of the disgraced Han Tae-song, financed the entire operation on two occasions between 2022 and 2023, to move at least 18 rhino horns and 19 elephant tusks from Botswana, including pay-offs – mostly to border patrol and customs officials for safe passage – along the knotty conduit across South Africa’s north western lands, then across south-eastern Zimbabwe into Mozambique.
According to a trusted cross-border transport operator in Zimbabwe, the rhino horns and elephant tusks were illegally handed over to smugglers in Mozambique at an obscure illegal crossing point 15km north of Zimbabwe’s Forbes Border Post in November 2022 and February this year.
The end buyers in Mozambique? “It is quite an embarrassment for us, but we have solid evidence that two North Korean buyers, one of them who is linked to a former notorious diplomat from that country who has been in the past involved in such illegal activities in Zimbabwe, oversaw the loading of rhino horns and ivory onto a China-bound ship from one of our ports,” a top government source in Maputo said before declining to divulge more information citing ongoing investigations.
Yi Kang-dae and his accomplice’s whereabouts are presently unclear to Mozambican authorities whose dragnet reportedly recently netted some key actors of the network. Han Tae-song currently serves as North Korea’s ambassador to the United Nations in Switzerland.
North Korean diplomats have in the past used Mozambique as a final transit point for the shipment of rhino horns to the Far East.
In May 2015, Mozambican authorities nabbed two North Koreans, one of them a Pretoria-based diplomat and political counsellor identified as Pak Chol-jun after they were caught in possession of 4.5kg of rhino horn pieces and US$100,000 cash.
Pak’s accomplice, Kim Jong-su, a Taekwondo instructor also based in South Africa, was fingered as a North Korean spy and returned to North Korea under suspicious circumstances on the heels of Pak’s expulsion from South Africa in November 2016.
A security source in Zimbabwe closely following current developments says there is a big chance that Han Tae-song may have revived the old smuggling network he ran while posted in Zimbabwe in the 90s.
“The biting international sanctions against North Korea in the past decade may have prompted Han to reawaken his network which has been dormant for some time,” the source says. “There is no telling if the shady network is dead now given that Han’s two front men have not been nabbed in Mozambique. More joint vigilance is needed to destroy the operation at the source and at the end of the line.”
North Korean diplomats have, as early as October 1976, been fingered for engaging in illegal activities ranging from possession of and trade in ivory pieces, trade in diamonds and gold, the manufacture and distribution of counterfeit currencies, pharmaceuticals, and the sale on the black market, of a paraphernalia of drugs, cigarettes, alcohol and other trinkets on the back of protracted and biting international sanctions against the reclusive state for its gross human rights abuses against its own people and flagrant nuclear tests.
These illegal activities, according to a US Congressional Research Service (CRS) report, have raked in at least US$500m annually for the Pyongyang regime. Other global studies estimate that North Korea’s illegal earnings from the black market are around $1bn annually, and are being channelled towards the country’s nuclear weapons programme, while ordinary North Koreans continue to die of mass starvation.
In February 2014, Botswana, citing systematic human rights violations, severed ties with North Korea with the former’s president Mokgweetsi Masisi (then vice president) calling North Korea an ‘evil nation’ on 23 September 2016, at a United Nations General Assembly forum in Washington, USA.
Botswana has close to 132,000 elephants, more than any of its four neighbouring countries, namely Angola, Namibia, Zambia and Zimbabwe, according to a 2022 Kavango Zambezi Transfrontier Conservation Area (KAZA TFCA) Elephant Survey.
The rhino population in Botswana has significantly dwindled, with poaching a leading cause of the decimation of the country’s rhinos. Despite dehorning and relocating its diminishing rhino population from the extensive Okavango Delta to undisclosed sanctuaries, Botswana has since 2018, lost 138 rhinos to poachers.
The sharp spike in rhino poaching in Botswana came after the country’s government made a controversial decision to disarm park rangers in early 2018.
In a statement delivered in November 2022 to the Convention on International Trade in Endangered Species (CITES) CoP-19 in Panama, the Botswana government instead blamed the surge in poaching to a shift of foreign-sponsored organised poaching organisations from South Africa to Botswana.
“This increase in rhino poaching in Botswana coincided with a decline of rhino poaching in South Africa from 2018 to 2020, suggesting a displacement of the poaching syndicates from South Africa to Botswana,” the statement reads. “The recent decline in rhino poaching in Botswana (2021 and 2022, relative to 2020) coincides with the increase in rhino poaching in Namibia and South Africa, further suggesting displacement of the poaching syndicates across the sub-region.”
According to the Botswana government, as of 13 November 2022 the country has secreted its shrinking rhinos (only 285 white rhinos and 23 black rhinos) in undisclosed locations within the country’s borders.
South Africa has close to 15,000 rhinos. Between January and June 2022 alone, poachers killed 260 rhinos in South Africa for their horns. The country is home to the majority of Africa’s white rhinos, a species whose existence remains under threat of extinction due to poaching.
The major threat posed by foreign state actors including those from North Korea, to southern Africa’s rhino and elephant population remains grim as the bulk of the rhino horns and elephant tusks reportedly continue finding their way to the Far East, where China is being used as the major distribution centre.