Botswana: Botswana Minister of Minerals and Energy, Lefoko Moagi, has given the go-ahead to take over of Khoemacau by Hong Kong listed company MMG Limited.
In late November, MMG and Khoemacau announced that MMG and the shareholders of Khoemacau ( Cuprous Capital ) have entered into a purchase agreement where MMG would acquire 100 % of Cuprous Capital and, in turn, take over Khoemacau Copper Mine.
It was announced by MMG that the transaction would be for a consideration of $1.89 billion ( approximately P25 billion ).
It was noted however that the acquisition would be subject to a number of approvals including by Minister of Minerals & Energy for change in control of all project licenses associated with the targeted company brought about by the Acquisition having been obtained,and that such approval would be either unconditional or on certain conditions.
On 22 December 2023, Khoemacau Copper Mining (Pty) Ltd, a subsidiary of Cuprous Capital, received approval from the Minister of Minerals and Energy of Botswana in respect of the transfer of a controlling interest in the Project Licenses and Prospecting Licenses associated with the Khoemacau Copper Mine, brought about by the Acquisition.
The approval by the Minister is a key component of the Acquisition in which the Minister is empowered by law, after assessment of the proposed “ take over “, to give a go-ahead or reject the transfer of the Project Licenses associated with the targeted asset or company.
Today, the MMG Board announced that the Ministry of Minerals and Energy Approval Condition was satisfied on 22 December 2023.
However, residents do not seem happy with the decision of the Ministry. One of the local residents said, “Selling national assets such as mines must be through parliament, not a minister alone..some countries are fighting to have mines be national assets while in Botswana, we are selling them ..any company that wishes to buy a mine must partner with the government and or pay a certain percentage to the community that mine is.”