GABORONE – The provisional liquidator of BCL Mine, Botswana‘s largest copper and nickel producer, will next month recommend that the state-owned company be wound down.

BCL owes creditors, including suppliers and banks, about $85-million and the government said in October that it could not afford the roughly $720-million needed to keep BCL running.

The company was placed under provisional liquidation last October, with global accounting firm KPMG appointed as liquidator.

At the time, Mineral Resources Minister Sadique Kebonang said: “The liquidator is the one who will make a decision to either shut it down or restructure the operations.”

On Tuesday Nigel Dixon-Warren of KPMG said that he would recommend to the courts on February 7 that BCL be placed under final liquidation.

Dixon-Warren said that three of the State-owned company’s subsidiaries were insolvent and that there were no resources available to finance operations.

“There has been interest in the assets of the three companies from a number of parties. The interest has been in some or all of the assets and has been from local and overseas parties,” Dixon-Warren said.

“However, the expressed interest has not led to any formal offers.”

Source: Reuters


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