'Change Of Guard' At Botash Nears Completion

ByWanetsha Mosinyi
Staff Writer | Monday January 14, 2008 00:00

One bidder has been identified and the process is in the final stages of due-diligence. 

'Last year, Government set criteria for the bidders to achieve. A number of private companies bid until the final one was chosen by shareholders,' Cochrane said.

But though Government has already approved of the bidder, Cochrane said he could not name the company at this stage. He said the sale of shares at the company was conducted as an unsolicited bid where any interested company was welcome to join the bidding. Currently Botash is 50 percent owned by the Government of Botswana, with De Beers, Anglo American and AECI owning 14 percent each. Various financial institutions own the remaining 8 percent.

The bidding company is expected to buy out the private shareholders so as to achieve a 50/50 partnership with Government. Cochrane said the private shareholders are willing to sell their shares because the products of Botash do not form part of their core businesses. Cochrane said the company did well last year in terms of production, just exceeding the budget, and sales which were buoyed by the shortage of soda ash in world markets. Production of soda ash stood at 278 000 tonnes and 292 000 tonnes was sold.Cochrane outlined plans his company has towards increasing production to 300 000 tonnes per annum. The company is looking to increase the number of wells to produce more brine - the sodium carbonate-rich liquor stored under the surface of Sua Pan from which the soda ash and salt are extracted.

Botash currently has 130 wells over an area of around 370 square kilometres pumping the brine to the solar ponds at the plant.

Another challenge the mine faces is the transportation of soda ash and salt via Botswana Railways and Transnet Freight Rail.

'This requires constant input from the mine to ensure that the train schedules are adhered to so that Botash remains a company which always delivers on time to its customers,' said Cochrane. Lack of experienced personnel is yet another challenges. 'This is a serious problem and will continue to pose a threat to the company's operations.
It is good that there is growth in Botswana, especially in the mining sector, but this stretches the available resources far too thin amongst the mines.' Cochrane said due to the short, medium and long-term negative implications of this to Botswana, it was an ongoing issue on the Botswana Chamber of Mines agenda and had been elevated to the Tertiary Education Council.

On the safety front, Cochrane said he is pleased that the company achieved a full year without suffering any lost time or none-lost time injuries. 'This is truly world class and means that our employees understand that safety doesn't just happen by itself but needs everyone to drive it with an attitude of zero tolerance towards any injury.'