NEWS ANALYSIS: Botswana’s reputation tarnished by shenanigans in Norilsk deal
Lawsuits multiply after planned buyout of Nkomati mine goes sour
Botswana’s government decided in 2016 to halt a multimillion-dollar contract for its state mining company to purchase SA’s Nkomati nickel mine from Norilsk Nickel, Russia’s largest mining company. The government also decided to put its state nickel mining company into bankruptcy to protect it against court claims from Norilsk Nickel. At the same time, it tried to arrange a buyout of its mining company by a penniless investment group in the United Arab Emirates (UAE). An official document, drafted on March 13 and circulating among Botswana’s cabinet ministers, reveals details of the fake buyout. The letter confirms the Norilsk Nickel deal was negotiated in bad faith by the Botswana government, which did not have the money to pay for it. It then sought secret help from the South African government to block the deal. This sequence of events has so far cost Norilsk Nickel a contract worth $277.2m, and the Botswana government the trust people had in it to honour its obligations to forei...
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.