Staff Writer
Nearly a decade after the closure of the BCL Mine, the government continues to shoulder significant financial costs arising from the prolonged liquidation process, with no clear indication of when it will finally conclude.
Minister of Minerals and Energy Bogolo Kenewendo this week acknowledged the financial burden, telling Parliament that the government remains committed to concluding the liquidation despite a number of unresolved issues that continue to delay the process.
The BCL liquidation, which began in November 2016, has now entered its 10th year.
In 2022, the government disclosed that it had spent more than P1.8 billion on the liquidation process. During Parliament’s question time, then Minister of Minerals and Energy Lefoko Moagi revealed that government had advanced over P1.6 billion to the liquidator since November 2016 and paid a further P163 million in terminal benefits to former BCL employees.
Responding to a parliamentary question on Monday, Kenewendo declined to disclose the current financial cost of the liquidation but said government remains committed to bringing the process to a close.
She said one of the major obstacles is the ongoing disposal of BCL’s remaining assets by the liquidator.
According to Kenewendo, following the sale of 1,228 houses to the government, the liquidator was left with 387 houses and plots, comprising vacant plots as well as properties occupied by third parties.
“Of the 39 cancelled transactions, only 10 houses have since been offered to different buyers,” she said.
Kenewendo added that sales of the remaining properties have been slow because many houses remain occupied, requiring legal action to evict occupants before they can be placed back on the market.
In addition, she said 114 properties have been fully transferred to new owners, while 231 are still awaiting registration.
The minister also identified the completion of several outstanding commercial transactions involving the sale of BCL assets to third parties as another key factor delaying the conclusion of the liquidation.
PNR transaction
Kenewendo further said the liquidation cannot be concluded until the sale of the Selebi-Phikwe mining assets to Premium Nickel Resources (PNR) has been fully completed.
She explained that the BCL estate cannot be finalised until PNR makes the final payment under the Selebi Mines Asset Purchase Agreement, which is expected by the end of December 2029.
“The final payment due by PNR in respect of the Selebi Asset Purchase Agreement is payable strictly in terms of a binding agreement,” she said.
The issue was raised by Reuben Kaizer, who asked the minister what measures government is taking to expedite the liquidation process, now in its 10th year.
Kaizer also requested an update on the major outstanding issues delaying the liquidation and sought clarification on the progress of the US$30 million final payment due from PNR under the Selebi Mines Asset Purchase Agreement.
