Govt rooting for Phikwe�s survival � PHK
Onalenna Kelebeile | Wednesday June 25, 2014 06:59
Government presently holds 94 percent equity in BCL Mine, its highest shareholding in any single mining company locally. The shareholding was built through years of debt to equity conversions, which include a P2.3 billion conversion in March 2014 that left BCL Mine debt free for the first time in years.
Launching the Botswana Democratic Party (BDP) candidate for Selebi-Phikwe West, Opelo Makhandlela, over the weekend, Kedikilwe said over the years, government has borrowed millions of Pula internationally from banks in England and South Africa to ensure BCL Mine’s survival.
The loans, underwritten by government, were slowly converted to shareholding as the Mine was unable to fund its commitments from its earnings.
Kedikilwe explained that being debt free would allow BCL to approach lenders to finance its survival strategy, which is inextricably linked to Selebi-Phikwe’s future.
Part of the strategy includes opening up BCL’s smelter to other players such as Hana Mining and Discovery Metals, who are both involved in copper.
“The aim is to have copper and silver concentrates from these mines processed at the BCL smelter,” Kedikilwe, who is a former Minerals minister, explained. “The smelter has a capacity of 450,000 tons per annum so it is capable of processing even concentrate from foreign mines.” Kedikilwe said government was also in talks with Japanese and Indian companies for the establishment of a sulphuric acid plant in Selebi-Phikwe to capture and process Mine emissions.
Previous BCL Mine studies have shown that such a plant would be viable with a waiting market locally and regionally. The plant would capture the estimated 534,000 tons of sulphur dioxide that BCL emits from its smelter, the Mine’s converter and other sources annually. “I am also set to conduct the ground-breaking for the steel manufacturing plant BCL Mine is setting up in Phikwe, next month and this will create 300 jobs,” he said. “Once operational, the plant will create 2,500 jobs in total.”
Turning to the support government has given directly to the copper and nickel mining town, Kedikilwe said public coffers had financed a P7.5 million feasibility study conducted into the leisure and tourism opportunities around Selebi-Phikwe. He added a road that is planned for National Development Plan 11 will pass through Mmadinare, Matopi and Matshelagabedi and thus reduce the costs Tati Nickel Mine incurs in transporting its concentrate to the BCL smelter.
“This will in turn also help in extending the Mine’s lifespan,” said the Vice President.
“Government has also constructed dams in the Selebi Phikwe Economic Diversification Unit area being Thune, Lotsane and Dikgatlhong at a cost of about P5 billion.” According to Kedikilwe, a 400 hectare horticultural farm is due to be established at Thune Dam, while another 250 hectare farm will be initiated at Lotsane. Government, he said, intends to set up a horticultural processing plant in Selebi Phikwe before the end of the year.
“Local farmers will benefit immensely from these farms,” he said.
“Selebi-Phikwe is not dying and instead the town is going to live for far longer. “All these projects will create job opportunities not only for the local community, but for the country at large. “
“Cabinet is currently in the process of appointing a Chief Executive Officer of SPEDU agency,” he added.
Kedikilwe urged voters to continue their faith in the ruling party, as “we are able to continue implementing these programmes”. “Though I am resigning from active politics, I am not leaving the party.
“I will always be with you and there is nowhere I can go. I have groomed capable people who can take this party further. “I served as party chairman for nine years and another six years as treasurer and I will always be with you,” he said.