In a move that will see the Selebi-Phikwe-based copper and nickel company finally restructure its business, BCL has paid over half a billion pula to its creditors, which include the Government of Botswana.

The General Manager of BCL Mine, Montwedi Mphathi, was in Gaborone on Tuesday to settle the mine's subordinated debt of P430 million given in US dollars (US$65 million) and P12 million to the government.

"We are very grateful to Government for keeping us afloat during the dark times", Mphathi said when presenting the debt settlement to the Assistant Minister of Finance and Development Planning, Samson Guma Moyo and his Permanent Secretary, Serwalo Tumelo.

BCL also settled a debt of US$25 million (P168 million) to a German bank KFW and US$2 million (P13 million) to the Industrial Development Corporation (IDC) of South Africa.

Except the P12 million from the Botswana government, the money was borrowed in US$ terms in the 1980s when the pula was a little stronger. Paying back now means BCL had to fork out the increased exchange differential.

Buoyed by increased demand for metal and improved prices on international markets, BCL has been posting healthy results over the last few years, obviating emergency funding, mainly from Government.

"The debt was heavy on our balance sheet and made it difficult for us to grow because it made our liabilities bigger than our assets," Mphathi said, adding that now that the mine has a "reasonable balance sheet", it will allow them extend the life of the mine.

During the "dark times" referred to by Mphathi, shareholders like Anglo American jumped ship, leaving BCL in limbo, had it not been for government subventions.

"As Government, we could not have left the mine to close because of the consequences that would have come," Tumelo said. "They (BCL) still owe Government a lot of money, but we are happy that they have managed to turn the corner and settle some of the debt."

BCL has a complicated shareholding where the Botswana Government has 7.5 percent, Norilsk Nickel 7.5 percent and Botswana RST 85 percent. Botswana RST (formerly Roan Selection Trust) is a holding company 30 percent-owned by the Botswana Government, 25 percent by Norilsk Nickel, 40 percent by public shareholders and 5 percent by other shareholders.

In addition to concentrate derived from its own mining operations and toll smelting for Tati Nickel Mining Company near Francistown, BCL processes concentrate from Nkomati Mine in South Africa. The suspension of construction of the Tati Activox refinery plant earlier this year is seen as a gain for BCL as its smelter will not lose its customers.

BCL produces two types of finished matte containing nickel, copper and cobalt and platinum group metals. These are shipped to the three refineries that the company has long-term contracts with, namely, Falconbridge International in Norway and RTZ and Bindura Nickel Corporation in Zimbabwe.

In 1989, BCL Mine's end of life at full production was forecast to be at the end of the year 2002. In 2001, the mine's end of life at full production was forecast to be at the end of 2008.

However, BCL has spent over P15 million on exploration and has discovered an additional 15.9 million tonnes that have been added to mineable ore reserves, increasing the lifespan of the mine.