Nova Africa Resources and its partner, AgaOne Commodities, are moving forward with plans to restart Mupane, Botswana's only active gold mine, by mid-2027 following a successful $21.5 million acquisition.

The joint venture's acquisition package aims to revitalize the long-dormant operations and breathe new life into the region's mining sector.

Located near Francistown in the North-East District, the Mupane Gold Mine first commenced operations in 2004, extracting ore from banded ironstone formations in the Mupanipani Hills.

Originally developed by Canadian miner, Galane Gold, the mine changed hands in 2022 when it was acquired by a local management vehicle, Hawks Mining Company.

However, the operation was plagued by mounting financial difficulties, high operational costs, and severe cash-flow issues, accumulating massive losses.

These compounding factors forced the mine to abruptly halt all production in March 2024, leaving it under care and maintenance until it fell into final liquidation in February 2025.

The mine's closure was compounded by unpaid worker debts, which triggered the liquidation process. During the subsequent liquidation sale, Nova Africa offered $21.5 million upfront. A rival bidder, Ulsan Botswana, offered only $500,000 but sued to block the sale.

Botswana's Court of Appeal finally dismissed the lawsuit, clearing the way for the sale to close. This ruling also allows the liquidator to pay roughly $3.6 million (P49 million) in back-wages to former workers who had been left empty-handed.

According to Africa Intelligence, the new owners plan to build Botswana's first domestic gold refinery alongside the mine restart. This facility will process gold locally instead of exporting raw metal. The goal is to turn Botswana into a gold processing hub for Southern Africa, exporting refined gold directly to international markets like the United States.

Mining precious metals and stones remains the absolute lifeblood of Botswana's economy. The country's global dominance in this sector was highlighted recently when a Botswana mine unearthed a massive 1,305 carat diamond, one of the largest ever discovered in history.

By adding a robust gold mining and refining sector to its portfolio alongside these historic diamond discoveries, the nation can further diversify its resource wealth.