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Botswana’s coal mining sector is facing an unprecedented crisis as 1,000 jobs hang in the balance due to unpaid contracts between state-owned mining firms and their subcontractors.
The Botswana Mine Workers Union (BMWU) has sounded the alarm, accusing the government of turning a blind eye to the financial collapse of Meropa Resources and Johdee Mineral Processing, key contractors for Minergy Limited and Morupule Coal Mine, both under the Mineral Development Company Botswana (MDCB).
MDCB, the government’s mining investment arm, oversees Minergy and Morupule Coal Mine.
According to BMWI General Secretary, Mbiganyi Gaekgotswe both contractors claim non-payment of invoices by MDCB subsidiaries forced them to lay off workers.
Despite BMWU’s repeated appeals to MDCB’s Chief Executive Officer, the Minister of Minerals and Energy, and even the President’s Office, no action has been taken.
Mbiganyi said workers now face unpaid salaries for months, defaulted loans and rent, unsettled terminal benefits and no clarity on future employment.
“This mirrors past failures of Jarcon Opencast Mining (2023) and Mopane Gold Mine (2024), where similar contractor collapses left hundreds jobless.”
Mbiganyi bemoaned that the current administration pledged 500,000 new jobs in five years, yet its own enterprise, MDCB is enabling mass layoffs.
“By refusing to settle contractor invoices, the government is violating labor rights, undermining its own employment goals and setting a dangerous precedent for private mining firms.”
BMWU demands immediate payment of owed salaries to Meropa and Johdee employees, settlement of unpaid invoices by Minergy and Morupule Coal Mine and urgent dialogue with the Union to prevent further job losses.
“The government must act now before Botswana’s mining sector becomes synonymous with exploitation and instability.”
