JOGMEC to explore for platinum in Botswana

BRAIN BENZA
Staff Writer | Friday October 9, 2009 00:00

JOGMEC says it has partnered with Australian firm Discovery Metals to jointly explore for platinum and nickel in Dikoloti in north-eastern Botswana.

According to the agreement between the two firms, JOGMEC will pay a total of A$3 million (approximately P18 million) to Discovery Metals Limited to jointly explore for three years in the Dikoloti area, where some promising deposits have been found.

'JOGMEC will pay Discovery Metals $A3 million ($2.67 million) over three years to obtain a right to 60 percent of the possible output from the Dikoloti region,' says a statement posted on the company's website.

The Dikoloti area has ore deposits of about 4.1 million metric tons containing platinum group metals, nickel and copper, according to early exploration results, the statement adds.

Discovery Metals is exploring for nickel in the Dikoloti area and for copper and silver in Maun. Discovery's Dikoloti nickel project comprises four prospecting licences covering 610km2 surrounding three nickel deposits of BCL Limited in the Selebi-Phikwe region in Botswana.

The entire project is within 45km of BCL's smelter, the largest nickel processing facility in Africa. JOGMEC says the deal will allow it to diversify its suppliers.

South Africa, the world's top producer of platinum, currently supplies about 80 percent of Japan's imports of the precious metal.

Japan is seeking to diversify procurement as demand for the metal is forecast to expand, the statement says. Platinum is used in fuel cells and catalytic converters to remove pollutants from engine exhaust gases.

The autocatalysts used to clean exhaust fumes actually account for a large part of global platinum demand.

JOGMEC is already an established natural resources company in Botswana and is currently working in partnership with the Department of Geological Survey (DGS) on a five-year Geological Remote Sensing Centre which involves the use of Japanese satellites in mineral exploration in Botswana while simultaneously training DGS staff to use this equipment.
The Geological Remote Sensing Centre was launched last September at a cost of US$5 million.

Japan's major imports from Botswana are currently diamonds, but this could change over time with the Oriental giant hoping to import minerals such as gold and especially uranium, for which it already has the technology to survey for.

Exports from Japan to Botswana amount to about P188 million annually and consist of mining equipment, electrical appliances and vehicles, while Botswana's exports to Japan amount to approximately P70 million, mostly diamonds.

The entry of Japanese investors into Botswana will boost trade between the two countries, promote Foreign Direct Investment and enhance technical skills and capacity-building in the local mining sector.