Tsimako asserts that no updates were provided once the pre-feasibility and due diligence began, a claim Ferreira firmly denies. The CEO contends that the union was kept informed from the inception of the sale process. The contrasting accounts add a layer of complexity to the ongoing narrative surrounding the mine’s trajectory.
This week, BMWU said it received notification from Khoemacau Mine CEO regarding the acquisition of Khoemacau Mine by MMG Limited, a company under the ownership of China Minerals Corporation (CMC).
โThe notification comes after several months of the Unions requests for disclosure on the identity of the parties bidding to take over the Khoemacau Mine,โ Tsimako said in the statement.
He said 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.
โUpon 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, 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,โ ย he noted
Ferreira on the other hand said engagements with the union started from day one, and there was never a point where Khoemacau omitted giving an update to the union.
โThey wanted to know the bidders. Unfortunately, we are not able to disclose them because we signed a non-disclosure agreement not to reveal names of bidders for at least two years post the sale process,โ he explained. Adding further, he said there are many reasons behind the non-disclosure of bidders, because some of these bidders are listed on stock exchanges and that some of this information can affect share prices, and violate listing rules, which would then have negative consequence on the bidders.
โWe gave them an opportunity to sign a non-disclosure agreement with us and that did not happen.โ
According to Tsimako, the bidding and adjudication process in the sale of Khoemacau systematically marginalised and/or side lined the Union despite the legitimate concerns the Union raised on the prospective buyers of the mine.
โConfidentiality and conclusion of Non-Disclosure Agreements were cited as grounds for secrecy in the 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,โ Tsimako said.
He added that the Union has no information on MMG Limitedโs management and human rights track record in the jurisdictions it owns assets. ย He said the Union has no real appreciation of the companiesโ level of competency, technical ability or level of regulatory compliance and other sustainability obligations.
โThe Union has no knowledge of how the companyโs conditions of work and general welfare of its 4,500 workers across all these jurisdictions,โ he said.
He also said all 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.
โThis 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 Unionโs petition which was served upon Hon Minister of Minerals and Energy, and Minister of Labour and Home Affairs 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 ,โ he said.
Ferreira however, stated that Khoemacau management took time to even consult with every employee of the mine, as well as other stakeholders on the sale process, to ensure that everyone was updated. He added that the mine practices high standards of safety and health and will always ensure that it remains the case.
