BCL woos investors for acid plant

MBONGENI MGUNI
Staff Writer | Tuesday March 2, 2010 00:00

 

Last week, the Selebi-Phikwe mine announced that it had finalised studies into the plant's viability, confirming research by the European Union indicating that such a plant is the only viable solution to BCL's sulphur dioxide pollution problem

With the costs of developing such a plant proving highly prohibitive to BCL, the Mine's vanguard is looking to investors, such as the German delegation that was on site last week, for possible funding solutions. The 22-member delegation toured BCL Mine, scouring for opportunities such as those presented by the proposed sulphuric acid plant. During the visit, BCL Marketing and Metals Support Divisional Manager, Gerry Ndlovu pitched the idea of funding the sulphuric acid plant to the Germans.Ndlovu explained that BCL produces large amounts of sulphur dioxide which can be captured to produce sulphuric acid.

With an estimated 534,000 tonnes of sulphur dioxide in annual emissions becoming a growing concern, BCL Mine hopes to strike it lucky with the series of inward investor missions the Botswana Export Development and Investment Authority (BEDIA) has lined up.

Backed by already existing feasibility studies, the targeted investor will need the financial and technical muscle necessary for the mammoth project's numerous factors. The sulphuric plant will require heavy infrastructural investment, including railway tracks, a turn-in and out, locomotives and associated works, specialised storage facilities and others. Most importantly, the investor will need to have secured robust off-take agreements with time and cost of the plant in Phikwe.

Yesterday, BEDIA Chief Executive Officer, Jacob Nkate told Mmegi that more investor interactions, within Botswana and externally, were planned for the year. He said while a planned Russian delegation visit had run into troubles, it was expected that the planned visit would take place soon. 'The success or otherwise of an investment mission is gauged by the number of people in the delegation, which itself shows the level of interest the people have in Botswana. The success can also be judged by the number of follow ups, subsequent to the mission; these people, having come here, do they then go back and make follow ups?

'The German mission was very successful with 22 delegates from different industries, who came and had a comprehensive programme from Gaborone, to Francistown to Selebi-Phikwe,' he said, adding that the investors showed interest in the various opportunities presented to them. Nkate said starting from the 12 of March to 02 April, 2010, BEDIA would embark on outward investment missions which will go to India, Singapore and Russia.

'There's going to be a lot of activity. We have also drawn up a programme with the Ministry of Foreign Affairs, where we have selected countries that we plan to travel to during the year.

'The forthcoming outward investment mission is just the one in the short term; there will be more coming,' he said. Among the forthcoming outward missions, India will be of particular interest to BCL Mine, as the Asian giant has a well developed sulphuric acid production industry.

EU researchers believe markets for sulphuric acid can be found locally in mines such as African Copper, Tati Nickel and abroad in South Africa and Namibia. They also believe a sulphuric acid production plant in Phikwe could spur a fertiliser production industry in Botswana, helping economic diversification.