BCL begins construction of steel plant

Pauline Dikuelo | Thursday July 3, 2014 07:00

 

“This project is expected to address the demand for steel in Botswana due to a lot of mining interests, infrastructural projects and property development.  

“Expected products to be manufactured are round deformed steel bars, construction and civil engineering steel products, angle iron and cast products like manhole covers, three legged pots and earth inspection chambers,” said BCL marketing and public relations manager James Molosankwe. 

At full production, the operation is expected to employ about 3,500 workers. Pula Steel also aims to bring external consultants only for the initial two years of operation to train locals and transfer skills.

“Phase I will encompass induction furnace and concast, its completion will result in a readily saleable product, called billet while the second phase will be rolling mill which will encompass installation of reheating furnace and steel rolling mill for production of final steel product in the shape and form ready for the market. 

“Pula Steel and Casting Manufacturers has positioned itself as the ultimate import substitution manufacturer of steel products in Botswana. Their main raw material is scrap metal, which is an abundant resource in Botswana that has been exported out of the country at high volumes but low value,” he added. 

The mine, which for years has been in debt forcing the government to borrow millions of Pula internationally from Banks in England and South Africa to ensure its survival, is now in the black after restructuring its balance sheet. 

The Polaris II strategy aims to transform BCL from just a mine threatened with closure over the years, into a competent and a diversified mining and related products Enterprise. Part of the strategy includes opening up of BCL smelter to other players such as African Copper and Discovery Metals as well as venturing into iron ore and coal mining.  

Recently the vice President Ponatshego Kedikilwe said they were in talks with Japanese and Indian companies for the establishment of sulphiric acid plant in Selebi Phikwe to capture and process mine emissions. The plant will capture an estimated 53,400 tonnes of sulphur dioxide that BCL emits from its smelter. Government presently holds 94 percent equity in BCL Mines, 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 this year that left BCL Mine debt free for the first time in years.