- Minergy secures funding from MDCB to resume mining operations in Botswana.
- Funding will be used to repay overdue balances to Jarcon Opencast Mining Botswana (Pty) Ltd.
- Resumption of operations to create jobs, boost mining industry, and support economy.
Harare: Minergy, a coal mining company in Botswana, has announced the resumption of its mining operations following the signing of a term sheet for funding offered by its main funder, the Minerals Development Company Botswana (MDCB). The funding will be used to repay the overdue balances to Jarcon Opencast Mining Botswana (Pty) Ltd, which led to the temporary suspension of mining operations.
The resumption of mining operations is a significant development for the mining industry in Botswana, which has been hit hard by the pandemic and the resulting economic downturn. The mining sector is a major contributor to the country's economy, and the resumption of operations by Minergy is expected to provide a much-needed boost to the sector.
The funding will also have a positive impact on employment in the country, as the resumption of operations will create jobs for local workers. The mining industry is a major employer in Botswana, and the resumption of operations by Minergy will provide much-needed employment opportunities for local communities.
The funding will be used to repay the overdue balances to Jarcon Opencast Mining Botswana (Pty) Ltd, which will enable Minergy to continue operations in a reduced sales environment. The company will implement reduced-cost initiatives to stabilize the business ahead of ramping up to pre-shutdown levels.
The funding is subject to normal legal counsel review, satisfactory due diligence, final documentation, and the review, acceptance, and execution of the relevant financing agreements by the MDCB and the fulfilment of suspensive conditions. The disbursement of funds is expected to take place by no later than 30 June 2023.
Minergy's resumption of mining operations is a positive development for the mining industry in Botswana and the broader economy. The funding provided by MDCB will enable Minergy to repay its debts and resume operations, providing a much-needed boost to the country's economy and employment opportunities. The mining industry is a crucial sector in Botswana's economy, and the resumption of operations by Minergy is expected to have a positive impact on the industry as a whole. The company will continue to update stakeholders once facilities have been signed and disbursements have been made.
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