The share price of mining contractor eXtract fell 10% to 36c on Monday morning after it warned it could lose a R500m a year contract in Botswana. The group, which was formerly known as Eqstra, said Botswana diamond miner Boteti intended to terminate its contract at the Karowe operation on December 13. Boteti also said it intended to withhold payment owed to eXtract subsidiary Eqstra Botswana for work done in October and November. "The company categorically denies and refutes any allegations of improper conduct relating to the performance of its contractual obligations," eXtract said in Monday’s statement. The contract contributed about R8.5m a year in profit, eXtract said. "Eqstra Botswana will seek to recoup its damages, in terms of the contract, which was to endure to December 2020. Discussions are ongoing to minimise job losses in Botswana," the statement said. Boteti Mining was created in January 2014 and owns 100% of the Karowe. Boteti in turn is wholly owned by Lucara Diamond,...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.