- 200 jobs on the line
- Management dismisses reports
The closure of Mupane Gold Mine looms ominously for the slightly over 200 mine workers and their families in Francistown and the surrounding areas.
Sources connected with the Mupane Gold management have hinted that the mining entity, which became the majority citizen-owned gold ore mining company in 2022, is facing serious financial difficulties.
Mupane Gold Mine did not respond to media questions even after several requests by the Business Weekly Review.
However, the General Secretary of the Botswana Mine Workers Union (BMWU), Mbinganyi Gaekgotswe, informed this publication that during a meeting held earlier this week, the mine management admitted to being in serious financial distress. Independently, The Business Weekly & Review confirmed that the mine is in debt, owing hundreds of millions, especially to state-owned utility companies.
“On March 11, 2024, the union had a meeting with the mine management where we were told that the mine is going through a rough financial patch. But they could not show us any documentary proof to show the magnitude of their financial problems,” said Gaekgotswe.
Mupane dismissed reports of closure during a meeting with BMWU. However, Gaekgotswe insists that Mupane Gold Mine faces imminent closure.
He stated that the union is closely monitoring the developments unfolding at the former Galane Gold, ensuring that its members do not miss out on their dues and terminal benefits.
Mupane had utilised its expertise to commence commercial production at its Galaxy mine in Mpumalanga, South Africa. The company also aimed to replicate this success at its Summit mine in Grant County, New Mexico, in the US. However, these efforts did not materialise as planned.
Amidst inflation, soaring food and commodity prices, and the looming hardship exacerbated by drought, the proposed imminent closure of Botswana’s sole gold mine is poised to plunge 210 workers into an already bleak and gloomy unemployment market.
During the announcement of the 2024 budget early last month, Finance Minister Peggy Serame disclosed that the government is intensifying its efforts to maximise revenue through various policy and administrative measures.
This entails diversifying and expanding the revenue base and further improving operational efficiencies, said Serame.
On the tax administration side, Serame revealed that the reforms are also ongoing including the introduction of digital sales of products and services by remote service suppliers into the tax net.
