24th January 2021
State-owned Minerals Development Company Botswana (MDCB) is taking on more risk to save its investment in Masama coal mine which has been hit by funding shortages following a lukewarm response from other shareholders to inject further capital.
The mine owned by Minergy, an Australian coal explorer which listed on the Botswana Stock Exchange (BSE) in 2017, needs cash to sustain operations following the first year of production that was bittersweet.
The first three months showed extremely positive trends in production, processing, and sales, followed by a depressed three months on the back of delayed funding and the COVID-19 pandemic, which impacted operations, Minergy said in a market update report released on Friday.