Heavy rain slows production at Botash
Pauline Dikuelo | Friday May 5, 2017 14:28
In the first three months of the year, Botash recorded 40,871 tonnes of soda ash against a budget of 72,835 tonnes while salt production printed at 44,229 tonnes against a target of 103,330 tonnes.
Botash acting managing director, Kangangwani Phatshwane attributed their lower performance to the heavy rainfall noting that the plant brine was diluted.
“Production in the first quarter was lower than anticipated due to the heavy rainfall. The plant feed brine was diluted which reduced soda ash production and the harvesting ponds were also under water for longer than normal,” he said.
He further noted that they are planning to build a warehouse to house a fine salt pre-packs plant, which he said was scheduled to be commissioned at the close of April this year. Botash has historically traded this product as semi-bulk but the project will bring package sizes down to 500g thus introducing Botash directly to the consumer end of the value chain.
Earlier this year, Botash announced that they will soon enter the salt retail market with its own product called Botsalt that will be packaged in one kilogramme and 500g batches. Locally, Botsalt will be competing against Flamingo Salt and the Cerebos, which is produced by Botash’s sister company Chlor Alkali Holdings (CAH) Group, a South African company. CAH holds a 50% percent stake in Botash while government holds the remainder.
Last year, Botash said that they intend to penetrate the African market as well as protect its current markets, especially South Africa where it exports about 20,000 tonnes of synthetic salt per annum.
Currently Botash exports about 42% of its salt to South Africa followed by Zambia at 24%, Zimbabwe with 16%, Malawi with seven percent, DRC with two percent while four percent is used in the country as cattle feed.
The company also supplies almost 100% of the glass factories in South Africa with soda ash.
Meanwhile, Phatshwane highlighted that they are also to commence sodium bicarbonate supply to the Botswana Power Corporation (BPC).
“We expect to supply sodium bicarbonate to BPC beginning of May this year for use at the Morupule A power station which is expected to be commissioned later this year,” he said.