- MALAWI GOVT. SAYS ISREAL GOVT. ARE SEEKING 80,000 CONSTRUCTION WORKERS
- NAIROBI COUNTY SET TO ISSUE WAIVER FEE FOR RENOVATION AND REPAIR OF FLOOD-RELATED DESTRUCTION
- MUBENDE LAUNCHED CONSTRUCTION OF JUVENILE DETENTION FACILITY IN UGANDA
- HOW TEMANE-MAPUTO ELECTRICITY TRANSMISSION LINE PROJECT IS GOING THROUGH TEST IN MOZAMBIQUE
- NEWLY OPENED PLASTIC RECYCLING PLANT SET TO HELP COMBAT NAMIBIA's PLASTIC INDUSTRY
HOW MDCB BAIL OUT BOSTWANA MINERGY OVER LOST OF COAL PRODUCTION
Minergy owners of Masama Coal Mine in Medie has struggled in the past to meet up its cash flow which has seen Minerals Development Company Botswana (MDCB) step in to bail them out.
The company has been struggling due to the reduction in international coal prices which has added to their challenges at the moment.
MDCB rolled-out it’s plans with a P389 million as a turnaround strategy to take Minergy to profitability and sustainability.
Minergy on the brink of facing banckrupty has received P90 million in funding from MDCB in August 2023 with P299 million coming in December 2023 which was crucial for resumption of production this year.
In March last year, production was halted following suspension of Mining operations by orders from mining contractors Jarcon Opencast Mining. This act was due to payment arrears-a predicament which had a huge impact on the coal sales.
So far, these strategic adjustments were essential to navigate the operational disruptions, as well as to position Minergy for future stability and growth as a low-cost coal producer.
Also, Minergy faced significant operational headwinds, due to the suspension of activities by the former mining contractor. This suspension resulted from outstanding trade payable arrears and impacted our sales performance, extending into the period and beyond according to acting chief executive officer of Minergy Matthews Bagopi.
Going forward, the company is focused on optimizing its coal resources, extraction, and processing, developing logistical solutions, and establishing market linkages to enhance efficiency, productivity, and sustainability therefore ensuring a brighter future
SOURCE: TheVoicebw