MCM and BCL renew three-year coal deal
Boitshepo Majube | Thursday April 10, 2014 10:45
BCL uses coal in processing of metal at the smelter. “MCM will be responsible for transporting this coal to BCL using part of a fleet of rail wagons dedicated to MCM by Botswana Railways,” BCL stated.
MCM started production of the commodity in 1973 as an Anglo American Corporation subsidiary with the main objective being to supply coal to the then Bamangwato Concessions Limited mine (now BCL) and BPC power plant situated in Selebi Phikwe. In 2000 Debswana acquired 100% ownership of MCM, and the company has since grown to be the dominant player in the coal mining sector in the country.
During the signing ceremony at BCL Mine in Selebi-Phikwe, David Kgoboko of MCM thanked the mine for honouring the off-take plans, noting that this strategic relationship has grown over the years.
Reciprocating in words of gratitude was the BCL general manager Dan Mahupela commending MCM for meeting their obligations in the past, as non-supply of coal by MCM will present challenges in the mine operations.
Meanwhile, MCM has stated that exports into regional markets continue to grow, giving rise to economic growth, employment opportunities and benefits for the surrounding community where the company operates.
The company said since the successful completion of its Phase I expansion, it continues to explore its vast reserves. MCM announced that it is currently undertaking further exploratory and investigative work, for Phase II expansion, with the objective of establishing an open pit mine in the northern boundary of its mining lease area to meet the additional regional and overseas markets’ demand for coal.
Thermal coal main customers for MCM are BPC, Botswana Ash, BCL and the latest addition being the Namibian power utility company, NamPower. In 2010 BPC built a new power station, which requires more coal for production of electricity. This forced MCM to expand so as to increase its total output and meet the demands for all its customers including BPC.
The total annual production of Morupule was increased from one million tonne per annum to 3.2 million tonnes per annum.