Motheo open cast bounces back to production
Mbongeni Mguni | Monday September 7, 2026 06:00
MCM closed Motheo in March 2024, as weak coal prices weighed down on operational costs at the Palapye-based facility. At the time, officials cited “significant challenges due to ongoing volatility in both international and regional coal markets”.
Motheo, built at a cost of P1.7 billion, was operated on a contract basis by a joint venture between Bothakga Burrow and Basil Read Mining, under a five-year contract signed in 2021.
Officials told BusinessWeek that since the resumption of operations at Motheo in March this year, the mine had shifted to owner mining.
“Upon our financial assessments, we realised that contract mining was becoming expensive,” Kenalemodisa Mabina, Shift Overseer at Motheo, told BusinessWeek during a tour last week. “We managed to secure funds and then acquire the equipment so that we reduce operation costs. “All the equipment that you see here is for Morupule Coal Mine, but we have 100% Batswana-owned companies that are supporting us.”
The termination costs associated with the joint venture contract were amongst the factors driving down MCM’s profits in the year ended December 31. The colliery recorded pretax losses of P216 million in the last financial year, compared to pretax losses of P26 million in 2024.
Much of the decline was due to reduced offtake by the Botswana Power Corporation, which accounts for more than 50% of revenue, as well as higher expenses associated with the termination costs of the opencast mining contract. General and administrative expenses increased to P368.6 million from P182.4 million, due mainly to the termination costs.
The resumption of the opencast mining operations suggests a rosier outlook for the colliery, as well as the prospects of recovery in its books.
Mabina said since the resumption of operations at Motheo in March, the mine had been able to reach its target of 90,000 tonnes per month.
“We started slow because we had to rehabilitate certain areas. “In June and in July, however, we managed to ramp up to 90,000 tonnes. “I think we can produce more than what we are currently, but we will be limited as the rains come,” he said.
According to MCM’s recently released annual report, in 2025, physical coal sales reached 2.27 million tonnes against a target of 2.85 million tonnes.
Sales were affected by heavy rainfall and flooding during the first quarter, resulting in extended truck turnaround times; low reliability of BPC power stations impacting thermal coal offtake; Botash tonnage shortfalls due to locomotive shortages and rail washaways; and cash flow constraints that limited equipment availability, officials said.
Offtake by the BPC’s Morupule A and B power stations, which are situated next to MCM and are supplied under a 22-year contract, was down 20% against target. However, much of the deficit was due to the colliery’s failure to supply product as required, with the monthly targets missed throughout 2025, except for the month of October.
MCM officials said part of the challenges included numerous instances of wet coal.
“MCM is currently focused on eliminating root causes. “Morupule B has also been constrained in terms of offtake due to reduced stockpiling capacity as a result of the coal shed project, thus requiring for MCM to continuously feed to bunkers. “This itself is a major capacity constraint, especially when not all units are operational, which has been the case for the whole year,” colliery officials said.