Pula Steel issues to be resolved � Molefhi
Onalenna Kelebeile | Friday July 15, 2016 11:42
Addressing a kgotla meeting in Botshabelo on Wednesday afternoon Molefhi said the Pula Steel issue is a bit complicated but it will soon be resolved once government starts regulating exports of raw materials by producing companies without first satisfying the local market.
He added that this will leave the only three manufacturing companies in the country to compete on prices. He said this however will be closely monitored to ensure that companies do not overprice as a strategy to avoid the local market in preference of the South African market. Early this year Pula Steel faced a challenge of shortage of scrap metals and discovered that tonnes of scrap metals were being exported and this impacted negatively on its business. Without scrap metal, Pula Steel cannot produce.
Molefhi further explained that the plant was also placed on an administrative closure by the Department of Waste Management and Pollution Control, because it failed an inspection and was ordered to install pollution control equipment. “We hope Pula Steel will speed up the installation process and bounce back to business,” he said.
He further explained that the world at large is facing employment creation challenges and said the fact that developed countries are also affected means that even developing countries like Botswana are not spared. He added that government has set up Special Economic Zones that will also look into relaxing some legislations to enable investors to set up and create sustainable employment opportunities.
He hoped that BCL mine’s lifespan will prolong so that the town can become a mineral hub and said they are still looking for a potential investor. Molefhi added that the acquisition of Nkomati and Tati Nickel to ensure the smelter operates at full capacity.
He added that all government institutions will be ordered to process food from the processing plant in Selebi-Phikwe to ensure that there is a sustainable market for the plant in a bid to generate more employment.
“Government and SPEDU will ensure that any loss of employment as a result of challenges faced by BCL mine are replaced through diversification strategies in place,” he added.
Umbrella village development committee chairperson Mmopiemang Basebi expressed concern over a high level of unemployment in the mining town that he said has been worsened by challenges faced by Pula Steel and BCL mine. He pleaded with the council to consider increasing the number of those employed under Ipelegeng programme to cushion the community from the economic challenges.