Beneficiation key to future of mining sector
Isaac Pinielo | Friday October 3, 2014 11:10
This is a massive decline from the 40 percent of a few years ago. While the gradual success in economic diversification efforts could be responsible for the mining sector fall in contribution chief executive officer of the Botswana Chamber of Mines Charles Siwawa has a steadfast conviction about the future of the mining industry in Botswana. In this tete-a-tete with BusinessWeek correspondent ISAAC PINIELO, Siwawa narrates how this sector will continue to grow and play a significant role in driving the country’s economy for many years to come.
BusinessWeek: Can you give us a brief description of your organisation?
Siwawa: The Botswana Chamber of Mines is a private sector organisation established to promote the interests of the mining industry in Botswana and to provide a unified voice on all issues affecting the mining and quarrying sector.
We promote the interests of the mining and quarrying industry and provide a voice on all issues affecting this sector.
BusinessWeek: How do you see the mining industry of Botswana in years to come?
Siwawa: Minerals will continue to play a significant role in driving the economy of Botswana in the foreseeable future. Where economically feasible beneficiation and downstream activities should be done in Botswana to facilitate diversification.
BusinessWeek: How is the participation of Batswana in mining?
Siwawa: There is quite a significant participation of Batswana in the mining sector in Botswana. The value chain is quite long and enriched leading to various areas in which citizens can get involved. I do not have statistics, but citizens get involved in contract mining, supply chain, part ownership of exploration and mining entities, part ownership in downstream activities in mining and of course employment opportunities.
BusinessWeek: How many mining companies are operational in Botswana?
Siwawa: Currently there are 14 mines operational in Botswana owned by nine (9) companies.
BusinessWeek: How many are citizen-owned?
Siwawa: I am not aware of any mines that are owned by Batswana in their entirety, but would hazard a guess that some of the mines do have Batswana directors.
BusinessWeek: How many prospecting licences have been awarded to Batswana so far?
Siwawa: There are prospecting licences that have been awarded to Batswana, but you can verify the figures with Geological Surveys in the Ministry of Minerals and Water Resources as the licences go through renewal phases after expiry.
BusinessWeek: Please explain the process of applying for a mineral prospecting licence?
Siwawa: The process for mineral exploration licence application is similar to that of applying for a piece of land from the Land Board. Firstly you have to identify an area that you believe would give you good prospects for a mineral that you are looking for. If the area is free and nobody has applied for it in advance, the area should be awarded to you to commence with exploration activities for a period of three years.
BusinessWeek: Do we have enough mining advisory experts in the country?
Siwawa: There are mining experts in the country for all types of technical fields. However, the numbers would have to be increased in line with the growth of the mining sector.
BusinessWeek: What are the challenges facing the mining industry in Botswana?
Siwawa: The biggest challenge is global mineral market collapse, which is usually unavoidable. The second challenge is lack of skilled personnel. This is however manageable. So far we have invited trainers from Germany to train our citizens since 2013. By 2016 the students will be graduating and ready to work.
BusinessWeek: What should be done to encourage Batswana to get involved in mining in large numbers?
Siwawa: The mining sector has huge capital expenditure implications coupled with high and frequent exposure to risks. The entry into this arena should be done with caution.
BusinessWeek: The Fraser Institute Annual Survey of Mining Companies has for eight years in a row placed Botswana as the highest ranked jurisdiction in Africa. However, there are some signs of deterioration in most of Botswana’s policy factors. What is your take on that?
Siwawa: I believe this slight deterioration is just temporary since we are just emerging from the recession. With time things will get back to the way they were.
BusinessWeek: How involved is the Botswana Chamber of Mines in the coal beneficiation strategy?
Siwawa: We are very much involved in the development of a coal beneficiation strategy. Recently, we held a joint workshop with the Ministry of Minerals Energy and Water Resources in which we discussed a study on the feasibility of mineral beneficiation in Botswana.
The study is scheduled to be carried out in the next 12 to 18 months. It was prompted by the number of mines opening up that have products amenable to beneficiation.
Beneficiation could add value to the country’s economy through increased export value of products and employment creation. It could also bring opportunities such as the generation of power for local consumption as well as exporting to the African region.
As you may be aware, our coal resource sits at 200 billion tones so we believe beneficiation can be achieved by generation of power to local markets and export to SADC.
The region has an installed capacity of 55GW and there is need to improve capacity. It is expected that the peak load will reach 77GW by 2020. There is scope in Botswana to supply the region.
An increase in primary mining activities has also opened up beneficiation options for minerals such as copper, nickel, iron ore, to name a few. Also, efforts are on course to achieve a sustainable base metals beneficiation industry in Botswana.
BusinessWeek: How is the progress with the construction of the Trans-Kalahari Railway (TKR) Line Project?
Siwawa: After the signing of a bilateral agreement, which took place in March this year between Namibia and Botswana for the construction of the rail line, we have reason to rejoice that the project will now happen at last. One thing about the agreement is that it will facilitate for the establishment of an office in Windhoek to oversee the feasibility of the construction of the route.
This is a 1,500km heavy-duty railway line and once operational it will boost trade in Botswana and turn the country into a regional trade hub. The construction work is expected to stretch over a four to five-year period.