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Mpho Tebele

Gaborone – The government of Botswana is caught between a rock and a tough place, while it faces a lawsuit over its BCL copper mine liquidated in a poorly executed investment contract . Botswana is also struggling to find potential investors for the mine after rumors that the maintenance of the mine would bleed national coffers.

This week, the Russian giant nickel producers, Norilsk Nickel, announced it intends to plead against the nation of southern Africa on the facilities of Nkomati and Tati to recover about 277 million of dollars (3 billion pesos) owed to it by the BCL belonging to the state.

In a statement, Norilsk Nickel Africa's CEO, Michael Marriott, explained that BCL had not made any payment under an equity purchase agreement entered into in October 2014 and that it was forced by the government to liquidate

BCL Investments Pty Ltd, wholly owned by BCL, holds an 85% stake in Tati. The remaining shares of Tati are held directly by the Government of Botswana.

Norilsk and BCL signed the Share Purchase Agreement which provided for the transfer of ownership of the Nkomati and Tati facilities to BCL in October 2014; in september 2016, the agreement became unconditional. Subsequently, BCL did not respect its end of contract and refused to pay the shares. As a result, Norilsk served BCL with a notice of material breach requiring the payment of the purchase price of approximately 277 million US dollars.

On October 9, 2016, the Government of Botswana filed an application with the Botswana High Court. and eight months later, in June 2017, the BCL entered the final phase of the liquidation.

"We asked Botswana courts for permission to defend our rights in London in 2016. It took more than 16 months for the court to consider this very simple matter, and we now have a deeply unsatisfactory prevented us from settling this dispute by impartial international arbitration, despite our right to do so under our contract with the BCL, "he said.

Norilsk Nickel filed a reckless trade claim against the government of Botswana, seeking to declare him responsible for the responsibilities of BCL and its entities.

This follows after the government, in October 2016, asked the Botswana High Court to have BCL and its

In the following months, Norilsk Nickel submitted a request for arbitration to the London-based International Arbitration Court (LCIA) to adjudicate its claims and filed a petition with u Botswana court to obtain permission to start arbitration. Marriott added that "Norilsk is disappointed by the decision of the Botswana court and remains dismayed by Botswa, the disregard of the na authorities for the rights of investors.We will seize every opportunity to ensure that the Government of Botswana is held responsible for all BCL commitments, including commitments to Norilsk Nickel for Nkomati and Tati transactions for a total amount of approximately US $ 277 million. "[19659006] In March, the Ministry of Finance and Economic Development has submitted an urgent request for parliamentary approval to settle the issue through an out of court settlement. Finance Minister Kenneth Matambo has asked the parliament to approve the negotiated fee of 45 million US dollars to be paid to Norilsk in the context of an amicable settlement. The proposed fees would see the government pay only a fraction of the $ P3 billion ($ 277 million) that Norilsk initially claimed from the Botswana government.

But Minister of Mineral Resources, Green Technology and Energy Security, Eric Molale, recently informed parliament that BCL liquidator Nigel Dixon-Warren had rejected Norilsk's petitions was sent to a South African court. "He then went to court in South Africa and recently lost the case.That's why I say my hands are tied because this liquidator is a court official." trying to tell him what to do, I will be considered interfering in the judicial process.Molale said that he does not know how much the liquidator has spent on the legal costs of bringing the case to court in Africa. South, revealing that he had just received the judgment of someone else in place of the liquidator.

Molale told Parliament that he had his own serious problems with him. Whole process of liquidation because it was said that the liquidation could take up to seven years

"We can not extend that. is a cost for this nation. Next week, I meet the liquidator. I want him to know what I think and no one should say that I immiscate myself in the judicial process because this issue is a serious problem that needs to be addressed urgently, "Molale said. According to the Minister, the liquidator has so far pocketed more than 42.3 million pesos in more than 20 months, with a monthly average of $ 2.2 million.