The Selebi-Phikwe Nickel/Copper Mine in Botswana

The development of the Selebi-Phikwe nickel/copper mine from its inception to the commencement of production and the role of the various parties in the financing of the project are described. The project was launched with every expectation of financial success by the Government of Botswana and the mining companies involved. Unfortunately, from the beginning it was plagued by technical difficulties which led to cost overruns and by falling nickel/copper prices which led to negative cash flows. Shortages of capital and cash flow difficulties necessitated three separate re-structurings of the financial package.