Africa-Press – Botswana. The Botswana Mine Workers Union (BMWU) has raised reflags over the much publicised acquisition of Khoemacau Copper Mine by MMG Limited (MMG).
This week MMG announced that it has entered into a Share Purchase Agreement (SPA) to acquire the parent company of the Khoemacau Copper Mine in Botswana, for an effective Enterprise Value of US$ 1,875 million.
Media reports show that Khoemacau is one of the highest quality new copper mines globally. It is understood that the transaction aligns to MMG’s strategy to build a portfolio of high-quality mines supplying the minerals most important to a decarbonised world.
However, the BMWU is not impressed with the latest development. The union’s president Joseph Tsimako confirms that his union received notification from Khoemacau CEO on 21st November 2023 on the acquisition of Khoemacau Mine by MMG Limited, a company owned by China Minerals Corporation (CMC).
“The notification comes after several months of the Unions requests for disclosure on the identity of the parties bidding to take over the Khoemacau Mine,” said Tsimako.
He added that; “Whilst the Union acknowledges management business update meetings held during the pre-due diligence and bidding stages in the sales process, no further updates were given once the pre-feasibility and due diligence were commenced at Khoemacau Mine.”
According to Tsimako, upon this realisation, the Union in the discharge of its representative mandate and as a key stakeholder in the mining sector, requested disclosure of the prospective bidders for the mine, in an effort to conduct external scrutinisation of each company and to avert the potential risk of mining arbitrage.
“This intervention by the Union was intended to be effected before completion of the sale process, this done notwithstanding both management and shareholders prerogative in the facilitation of its companies commercial transactions,” he said.
Tsimako said rhe bidding and adjudication process in the sale of Khoemacau systematically marginalized and/or side lined the Union despite the legitimate concerns the Union raised on the prospective buyers of the mine. |Confidentiality and conclusion of Non-Disclosure Agreements were cited as grounds for secrecy inthe sale of Khoemacau mine. As it stands, the Union received communication the same time as the general public on the announcement of the preferred buyer of the mine,” said Tsimako.
He said the Union has no information on MMG Limited’s management and human rights track record in the jurisdictions it owns assets. Tsiamako further noted that the Union has no real appreciation of the companies’ level of competency, technical ability or level of regulatory compliance and other sustainability obligations. The Union has no knowledge of how the company’s conditions of work and general welfare of its 4,500 workers across all these jurisdictions.
“In conclusion, all the stakeholders directly or indirectly involved in the Khoemacau Copper Mine sales transaction have kept mum and kept the Union at bay during the entire sales process,” said Tsimako. He said this is despite several issues which the Union had raised in respect of Khoemacau Copper Mine management including issues related to safety and health, employee welfare and regulatory non-compliance in the Union’s petition which was served upon Minister of Minerals and Energy, Lefoko Moagi and Minister of Labour and Home Affairs Anna Mokgethi respectively on the 11th October 2023.
“It is regrettable that, Government through both Ministries has decided not to respond or act on the BMWU petition or even acknowledging receiving the same, this is despite continued sufferings and frustration of employees at the mine,” said Tsimako.
The union called on the public to support the Union in their fight against mining transactions that are done without transparency and devoid of consultations with the workers. We guarantee that workers are going to be the losers from this transaction.
MMG Chairman Jiqing Xu commented: “The acquisition of Khoemacau mine is an important step in achieving our vision of creating a leading international mining company for a low carbon future and will create meaningful long-term value for our shareholders. Khoemacau is a high-quality operating mine with a strong expansion case, located in one of the most prospective mining regions in Africa, the Kalahari Copper Belt, in Botswana, and capable of supporting global supply chains.” He added that; “This transaction aligns with our strategy to pursue value-accretive external opportunities, while continuing to drive significant organic growth opportunities across existing operations.”
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