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Financials

Botswana's BCL Mine should be wound down, says liquidator KPMG

GABORONE, Jan 17 (Reuters) - The provisional liquidator of BCL Mine Limited, 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. [nL5N1CE0GE}

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 Feb. 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.” ($1 = 10.5708 pulas) (Reporting by Johannesburg Newsroom; Editing by David Goodman)

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