BCL develops power saving plan

KENNETH BANDA
Correspondent | Friday February 1, 2008 00:00

BCL divisional manager in charge of marketing and communications, Gerald Ndlovu said the mine has engaged the services of an energy audit consultant to help identify areas that can reduce power consumption without affecting business.

'BCL is fully aware of the power shortage in southern Africa and Botswana and committed to contributing meaningfully to the power conservation effort. We have developed a load shedding plan that allows us to comply with such requests with minimum disruption to our operations,' Ndlovu told Business Week.

He said BCL has always cooperated with the Botswana Power Corporation (BPC) whenever called upon to shed load. He said the mine supports BPC drive to promote the use of energy saving bulbs. He added that BCL encourages its employees to become more energy conservation conscious.

BPC has publicly commended BCL mine for being the most efficient of the major power consumers. The mine consumes at least 18 percent of BPC's power, spending P120 million on electricity bills annually. Ndlovu said estimates for the mine's 2008 production prospects are conservative, as more focus will be chanelled to extending developed ore reserves. He stated that low copper prices impacted adversely on their cash flow, even though BCL's primary product is nickel.

Global copper prices plummeted to a nine-month low last December, against a backdrop of low housing demand in the United States. However, Ndlovu said good copper prices over the last few years have contributed significantly to the company's overall revenue. Heavy rains that continue to fall in most parts of the country might have a negative impact on BCL's production, he added. He said the mine has a 'Rainy Season Hazards' plan that is used to mitigate rain associated risk on production. Ndlovu noted that prolonged flooding of Motloutse River might affect the availability of sand used for flux in the smelting process. He said there have been no new developments as far as the company's shareholding structure is concerned. BCL general manager, Montwedi Mphathi told journalists in December that there would be a shareholding change at the mine, though there were modalities to be completed.

It is reported that under the new structure, the Botswana government will have significant shares.