Tati Nickel not closing down

Tati Nickel mine in Francistown has vehemently rubbished widespread allegations that it is on the brink of liquidation and closure. Public Relations manager, Tebogo Rapitsenyane informed The Midweek Sun that the company is not bankrupt or on the brink of closure.

“When the Bamangwato Concession Limited (BCL) smelter went under major refurbishments last year, we were producing but not selling anything which resulted in the mine experiencing cashflow problems,” he said, further noting that, “our ore was stock piled as we waited for the smelter to be completed and the whole process of refurbishment took roughly four months as we only started to use it in November last year.”

Rapitsenyane argued that it was also good for the smelter which has been in operation for some decades to be refurbished as new components and parts were installed.

He said that during that time there was no money coming into the mine. Instead the mine had to pay staff salaries and became indebted to its various suppliers whom he said understood their woes. Rapitsenyane also stressed that as a result of the declining prices of metals, it will take the mine some time to recover.

“For the mine to come out of the cash flow problem, we have decided to strategise by implementing strict cash control measures. These include suspending further training and recruitment of staff to save whatever little cashflow we have.” According to Rapitsenyane the mine has experienced worst challenges before and there is no need for people to press panic buttons unnecessarily. He argued, “Metal prices are going down every year and despite this, retrenchment has never been on our menu since the mine is not indebted to any bank for any major loans. We normally apply for small loans in various local banks to ease pressure of cash flow when faced with such problems.’’

He revealed that the mine plant is fully paid for and that the only expenditure they incur are monthly staff salaries, paying suppliers and maintenance of available transportation and other in-house equipment.

“Since government is a major shareholder in the company, Tati Nickel found nothing wrong to inform the responsible ministry of its current cashflow woes which will soon be water under the bridge. We never begged the government to bail us out financially as it is rumoured, but only informed them of our situation as our main partner,” he clarified.