Mining Supplement by Gazettebw

The Botswana Gazette

Wednesday 15 - 21 July 2015

MINING SUPPLEMENT

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The Botswana Gazette

Wednesday 15 - 21 July 2015

Mining and Engineering in Botswana The mining industry remains the main driver of economic activity in the country and is fore casted to sustain the economy further into the future. Botswana is one of the world leaders in diamond production, with Russia competing closely. While Russia is currently the largest diamond producer in the world in terms of production volume, Botswana produced The most in terms of value, accounting for 23.6 percent of total global diamond production.

pportunities for investment in the mining sector include; prospecting and surveys, expansion of existing mining projects, new mining projects, beneficiation of minerals and improved value chain benefits. The benefaction of diamonds represents one of the most promising areas of opportunity. The Botswana Diamond Hub was established to develop a sustainable secondary diamond industry in Botswana. To facilitate the establishment of diamond ancillary businesses, 28 licensed cutting and polishing companies are in operation, mainly centered in Gaborone. The potential exists to expand operations to other parts of the country. Currently there are 16 major mining

Opportunities for investment in the mining sector include; prospecting and surveys, expansion of existing mining projects, new mining projects, beneficiation of minerals and improved value chain benefits activities taking place in the country. The mines are of different types, from open pit to shaft mines. Diamonds

remain the leading mineral with up to 27 million carats being pump up from the ground every year, though Botswana is awash with minerals including, Copper, Nickel and Cobalt, Soda Ash, Silver, Gold, semi precious stones and coal. Speculation of oil, uranium and other key resources has been doing rounds in geological circles. Meanwhile, Botswana’s coal industry is likely to see increasing investor interest in the coming years, and has been identified as a vehicle through which to diversify the economy. The Botswana Chamber of Mines expects the country to export 115 million tons of thermal coal in the next 7–10 years. According to Business Monitor International (BMI), the country’s mining sector is expected to grow at

an average rate of 3.7 percent during 2013–17 to reach a value of US$6.13 billion by 2017. This is expected to be driven by the steady growth in diamond production, combined with an accelerated growth in coal output. All of Botswana’s mineral rights are vested in the state in the public interest, according to the Ministry of Minerals, this is meant to protect the mineral wealth of the nation and to ensure that they are investigated and exploited in the most efficient, beneficial and timely manner. This stand is used to warrant the government’s right to 15% free equity participation in all mining operations in the country, the provision has since been abolished in order to liberate the sector’s growth.

Wednesday 15 - 21 July 2015

MINING SUPPLEMENT

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The Botswana Gazette

‘BH Botswana’ changing

mining through innovation

H Botswana; the sole distributor of JCB construction and industrial equipment in Botswana has been a JCB dealer since 1973. The company has over the years marked its place in all the sectors from construction to mining and agriculture, building strong business relations with renowned organizations. “The first recorded sale of a JCB

machine into one of Debswana’s mines was in 1985 and it was a telescopic handler. BH Botswana mostly deals in mining support equipment such as skid steer loaders, rough terrain forklifts, telescopic handlers, and backhoe loaders to mention a few. We have also provided specialized equipment such as the JCB 1CX, a miniature backhoe loader, which is designed to deliver utility where larger equipment will not fit.

BH Botswana

Innovation for Development

Opening soon in Letlhakane GABORONE

FRANCISTOWN MAUN

KAZUNGULA

Plot 69500.Lejara Road Broadhurst Industrial. Gaborone P O Box 396,Gaborone Tel:+267 391 2811

Plot 31210 Phase 4 Ind. P O Box 640,Francistown Botswana Tel:+267 241 3456 Fax:+267 241 3720

Lot 1163, Plot 118A Kazungula,Botswana Tel:+267 625 0716 Fax:+267 625 0709

HEAD OFFICE

Fax:+267 397 1963

Plot 216 Boseja Ind. P O Box 21338,Maun Botswana Tel:+267 686 3601 Fax:+267 686 3602

Our role as a support equipment provider continues to grow. We have now extended into providing lighting for the mine pits in the form of JCB Lighting Towers. This has improved safety standards as it increases visibility. JCB’s Load all telescopic handler is used for both material re-handling and man platform applications. We also have rough terrain forklifts in the mine which are also used for material re-handling,” said BH Botswana Marketing Coordinator Gosego Makhamisa. She further stated that their role is gradually evolving beyond just support. The mine’s recent acquisition of a JCB 456 front end loader brings JCB equipment closer to the production front. BH Botswana has taken a further step by setting up a service point to allow them to service mines in Orapa, Letlhakane and Damtshaa. “This is a new and exciting move for BH Botswana as we grow relations with the mines. “Our equipment is built to ISO standards. The major concern always being the safety of the operator working with the machines within the mine. Amongst others, we conform to ISO’s Roll Over Protective Structure (ROPS) and Falling Objects Protective Structure (FOPS) standards. These stipulate the need for absolute protection of the operator should the machine tip over or should rocks within the mine fall on the machine, respectively. Safety and innovation in safety is a very important aspect of the JCB brand which makes us a good fit for mining,” she said. BH Botswana and JCB’s relationship has grown from strength to strength over the last 30 years. They also supply a full comprehensive range of genuine spare parts and ground engaging tools. The spare parts are constantly monitored and receive the full backing of the JCB world parts center in the UK. Their parts team has expert knowledge and is ready to assist with any situation, with extensive stock available in-house. BH Botswana also sell pre-owned JCB equipment. They have branches in Francistown, Maun, Kasane and a Head Office in Gaborone.

The Botswana Gazette

Wednesday 15 - 21 July 2015

MINING SUPPLEMENT

MORUPULE COAL MINE (MCM) is Botswana’s only operating coal mine and is located 14 km west of Palapye in eastern Botswana, along the main Palapye-Serowe road. MCM started operating in 1973 and currently operates one underground mine with a capacity of 2.8 million tonnes per annum. The Mine supplies coal to local companies and exports to the sub region including Zimbabwe, Namibia and South Africa. MCM is a 100% Debswana Diamond Company subsidiary.

THE NUMBER ONE COAL MINING COMPANY IN BOTSWANA

Morupule Coal Mine

Seam to Energy

KPJ Drilling is your local supplier for: Drilling Equipment and consumables for all types of Drilling works from Down the hole Hammer to Diamond Coring. Particular Products Supplied are: • Drilling Fluids and Muds • Diamond Coring Equipment • Drilling Equipment • Overburden Drilling Systems KPJ Drilling also provide: • Re-conditioning of Drill Bits & Manufacturing of Augers Tel: 319 0837 Fax: 319 1822 Cell: 713 03839 Email: kpj@vbn.co.bw Website: www.kpjdrillingsupplies.ws

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Jindal looks to Southern Africa for opportunity

indal Botswana is at the forefront of Botswana’s mining and energy developments, aligning itself with the country’s national goals. The company has been highly active In a question and answer with our

correspondent MODIRI MOGENDE, the company’s General Manager and Country Head Rajendra Kumar Tiwari said his company is looking to explore Southern Africa’s power deficiency. What is the future of coal mining in Botswana?

Wednesday 15 - 21 July 2015

Botswana has got Africa’s largest coal reserve that is of the tune of 200 billion tone. Coal quality is suitable for power generation as well as for export for Thermal Power Plants. Botswana is facing challenges from the other coal exporting countries like South Africa, Australia and Indonesia. Being land locked country, coal logistics become the biggest challenge. We have to improve rail infrastructure and minimize the transportation cost to be competitive in the market. We have to develop our local power industry at the same time so that the lower quality coal can be given

The Botswana Gazette

some economic value and making coal mining economically viable. What opportunities exist in the Southern African power shortage situation? Almost all the countries under SADC are in power crisis. Only 5% of the rural areas in the region have access to electricity. SADC falls behind other economic communities in Africa regarding access to electricity. Botswana being land-linked to all major SADC countries, we have to use this geographic advantage and become a major power exporter in the region. Power Whiling is much economical than coal transportation. Jindal got involved with the purchase of CIC Energy last year, what is the current status with the Mamabula Project? We are in the most advanced stage as per readiness is concern. We have been awarded environmental clearance for our mines, Power Plant, Well Fields and other associated infrastructure. We became the first Private sector company to be awarded with a coal mining license. We are among few short listed bidders for the green field power project from where BPC is planning to source power by 2020. So we are ready in all respect to kick start. Your company has previously stated that it intended to establish a project that would convert coal to low sulphur diesel fuel and associated products. What is the progress with the project? We are presently concentrating on power and mining business vertical, however we look at coal to liquid project as our long term business vision. Project of such nature requires huge resources, technology, man-power and above all huge investments. Definitely monetizing Botswana Coal will open new opportunities and will become part of Economic Diversification Drive for the development of the Nation. How are low commodity prices affecting your developmental plans? Low demand of coal from China and increased exports from Australia and Indonesia has impacted the commodity prices to be lowest at present. However, we feel that this is the right time to keep all the work ready for commodity prices to go up, so that we can cope with that time. We are working to keep our readiness inline, however, market prices will dictate the start of production. Domestic Power Plants can give some boost to local production of coal in Botswana.

Wednesday 15 - 21 July 2015

Botswana Chambers of

Mines; the mining industry’s gatekeeper LAME MALEFHO

he Botswana Chamber of Mines (BCM) was established in 1984. It currently has thirty members of which ten are operating mines, fourteen are exploration companies, five are contractors and one is a supplier. All these members participate actively in the running of the organisation. BCM was established to serve the interests of the mining and exploration companies together with associated industries. The mining industry remains the main driver of economic activity in the country and is forecasted to sustain the economy further into the future. More exploration for minerals is taking place in the country and whilst this is a welcome development, it is essential that the progress is achieved smoothly with due regard for legislation. The Chamber of Mines aims to ensure that legislation in the country is conducive for mining companies and at the same time developing good working relationships with the legislator. The direction that this industry pursues therefore is not only significant for the mining organizations, but crucial for the country’s image in the world economic fora. The organization realizes the critical success of this strategy to be dependent upon its people. According to the Chief Executive Officer of the charmber Charles Siwawa, “BCM aims to address issues that are of national interest. Skills development is one area that the Chamber has embarked upon to ensure that the skills that are available in the country can be fit for purpose in the mining industry. The issues of Economic Diversification Drive in conjunction with Government efforts with the realisation that the natural resources are non-renewable. It is important therefore that the proceeds from these resources should be ploughed back into the economy such that it becomes sustainable beyond the economic life of most of the minerals. Hence the project within the Chamber that seeks to utilise the combined purchasing power of the mining entities to create a vibrant industry that supports the mining business and also aims to ensure sustainability of the economy. Some of the members have significant natural resources that can be used to generate electricity for the country. This aspect of the economy must be nurtured to fruition. BCM also exists to ensure that mining activities are carried out in an environmentally sustainable manner and to the best of

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safety and health standards.” Siwawa further expressed that despite several achievements, the BCM has faced regulatory challenges and made strides to ensure that the framework is there to provide sufficient scope for the implementation of appropriate regulatory functions. “In some cases the BCM has moved ahead of the regulator in implementing what was deemed appropriate at the time.

Some of the sites have opened up mining operations in areas that do not have utilities like electricity etc. This has had a profound negative effect on the operations. It is our hope that these challenges will be resolved for the benefit of mining operations,” he says. Siwawa also commented that as the BCM they hope to implement a few changes to ensure that the mining industry remains credible and transparent. “There are several issues within the industry that need to be tackled with due care. There are several exploration companies with intentions of transitioning into operating mines. There is a big learning curve during this transition and it remains the role of the BCM to ensure

that the new comers into the industry operate at levels that are satisfactory and avoid the pitfalls endured by their predecessors. We need to look at the issues of rehabilitation post the mining activities such that the areas are brought back to as close to the original state and landscape as possible. This is achieved through investing in a rehabilitation fund that is set up specifically for that purpose. We are aware that this area has not been given close scrutiny in the past resulting in mining sites being left in not a good state. We also work quite close to the legislator such that any changes in legislation, should be done to the satisfaction of the industry,” he added.

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P O Box 2342,Gaborone. Tel/Fax: (267) 392 2911. Email: info@hoistings.co.bw

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The Botswana Gazette

MINING SUPPLEMENT

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Wednesday 15 - 21 July 2015

Jwaneng Mine; The Prince of mines GOSEGO MOTSUMI

to the Debswana website Jwaneng is currently mining to a depth of 400 meters and is expected to reach 624 meters by 2017. “The resource consists of three separate volcanic pipes/vents namely; north, south and center pipes (two additional small kimberlite bodies have also been intersected within the pit). The pipes erupted through Transvaal strata and the overlying Karoo sediments ~245 million years ago. Production normally varies according to mining plans of approximately 12.5 to 15 million carats per year. In 2014, Jwaneng produced 11 312 279 carats. This excellent

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ittingly named one of the richest diamond mines in the world in terms of value, the Jwaneng mine owned by Debswana, a partnership between the De Beers and the Government of Botswana is located in the small town of Jwaneng in the South central part of Botswana. Jwaneng meaning a place of small stones which is 160 kilometers from Gaborone is home to the 8th biggest diamond mine in the world as it contributes up to 70%

revenue of Debswana, which operates four diamond mines in Botswana. The Jwaneng mine is the flagship of Debswana due to substantially higher dollar per carat obtained for its gems, a fact that crowns the mine as the prince of all diamond mines in the country. The open pit mine became fully operational in August 1982, when it was officially opened by the then President of Botswana, His Excellency Sir Ketumile Masire. Construction of the mine and the township commenced rapidly, the former coming into full production in July 1982. According

The Botswana Gazette

rate of recovery, combined with the very high quality of the diamonds, continues to make Jwaneng Mine the richest diamond mine in the world, by value.” In a quest to extend the life of the mine, Jwaneng embarked on a major project called Cut 8 with an investment of P24 billion over the next 16 years. The expansion project will ensure continuous production until at least 2024. With Cut 8, the life of Jwaneng Mine will be extended further by an additional 7 years. Speaking at the launch of Cut 8 in Jwaneng, President Lt Gen. Seretse Khama Ian Khama stated that the project will further make it possible for the country to turn diamonds dreams into reality. The project would not only ensure the mine’s sustainability and resultant creation of jobs as well as revenue for Debswana’s shareholders but also showcase Botswana’s economic capacity and potential to undertake a project of such magnitude during a time of recession. “As for the Jwaneng community and surrounding villages, Cut 8 would enable the growth of existing businesses, create new business streams to supply the various aspects of the project and create new employment opportunities. To date, more than 1 700 jobs had been created through Cut 8 of which 1 500 were held by Batswana,” Khama said. In addition to its large contribution to the country’s economy the mine has been able to maintain an excellent safety record. Since 1984, the Mine has achieved one of the lowest disabling injury incident rates in Botswana and the mine recently underwent an external audit and the Auditors recommended recertification. Within the boundaries of the mine’s area there is Jwana Game Park, which measures 15 669 hectares and accommodates approximately 1 700 animals. The park also hosts a field unit of Cheetah Conservation Botswana, as well as white rhinos from the Khama Rhino Sanctuary. The mine is accompanied by the Jwaneng township which offers tourists and residents with facilities such as petrol stations, shopping complex, hotels and guest houses.

INTERESTING FACTS •

•

P O Box 2342, Gaborone Botswana. Tel/Fax Cell Email Website

: : : :

(267) 392 2911 (267) 73922910/1 cranes@hoistings.co.bw www.hoistings.co.bw

•

In 2014 Debswana produced 24.2 million carats , 7% higher than in 2013 contributing 75% of De Beers Group’s annual production on a 100% basis. Jwaneng has been hosting the annual Toyota 1000 Desert Race since 2014 16 December 2010 marked the day Jwaneng mine’s Cut 8 Project was officially launched by President Ian Khama Seretse Khama. The scope of the Jwaneng Resource Extension Project (JREP) involves the delivery of an indicated resource estimate down to 850m below surface, which will then support mining operations for the next 20 years including all key expansion activities such as the Cut 8 and Cut 9 projects.

The Botswana Gazette

Wednesday 15 - 21 July 2015

Lift and Shift

Botswana

aving been incorporated back in 2011, Lift and Shift Botswana is one of the best in their area of business and are well known for their wide spectrum of services, offered by a team of highly skilled and experienced technicians and engineers. The company offers pneumatics, hydraulics, and mechanical and electrical engineering services. The locally owned company has become one of the most reliable and innovative crane, hydraulic, container handling service provider in repairs and service of hydraulic equipment such as, truck mounted cranes, skip trucks, pneumatic cylinders and related products. According to Lift and Shift Equipment Botswana Assistant Director, Ivy Tiroyamodimo, “the company exist to provide innovative pneumatics, hydraulics and mechanical solutions. Our pledge is to establish lasting relationships with our customers by exceeding their expectations and gaining their trust through exceptional performance.” She said though their working relationship with the mining industry has not yet reached where they want it to be at the moment, they are trying to get the government to provide policies that will help solidify their relationship with the mining industry. “Our relationship with the mines is not that strong or bad. Though we do not have a major market on the mining industry as we would like to, we have some that are supporting us. Therefore we think the government must help us by providing a policy that will somehow force the mining industry to support local companies,” she said. Tiroyamodimo further noted that one of the best products and services that they offer to the mining industry are hydraulic cylinders that they also service themselves. She said the one thing that customers can only get from Lift and Shift Botswana that sets them apart from other companies in the industry is the magnificent service and the good job that they offer to their clients. She stated that their skilled and experienced technicians and engineers are flexible to customer needs and are able to handle any type of project, solving problems quickly and correctly. “The competition is tough but we are working very hard and tirelessly by supporting our products and services by visiting our clients regularly and providing the best service that we can

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do thus making sure that our clients are satisfied, doing so makes us as a company to survive the competition. It is our responsibility to ensure that we do not pollute or harm the environment, therefore we try our best to avoid environmental issues that are associated with our industry,” she said. In order to acquire the standards conducive to the demands of the industry as well as those of environmental awareness, Lift and Shift Equipment Botswana has acquired partnership with HYVA CRANES, a company with its birth roots in Netherlands, and manufacturing factories in Germany. Brazil, China, and India.

Repair of all Hydraulics Components | Hydraulic Cylinders Pumps | Valves | Cranes | Pneumatic Cylinders | Mechanical Gearboxes | Electrical Motors | General Engineering P.O Box 50126, Gaborone Unit 6, Plot 20731, Pharatlhe Road Block 3 Industrial, Gaborone Tel: 392 5138 Fax: 393 2862 Cell: 72 103 122 / 71810 950 website: www.liftandshiftbots.co.bw Email: pmtyro@liftandshiftbots.co.bw

MINING SUPPLEMENT

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Wednesday 15 - 21 July 2015

The Botswana Gazette

Ndolo Engineers Ndolo Engineers is a multi-disciplinary engineering firm which was founded in 2004, but was registered in Botswana in 2010. It undertakes consultancy services an a wide range of disciplines ranging from engineering, environmental, project management and Geo-technical investigations. Initially, Ndolo Engineers capabilities were focused on structural work only. However client needs soon precipitated an expansion of these capabilities. Ndolo Engineers now retain the in-house skills to execute all aspects of the engineering required to achieve complete a development.

Civil & Structural, Electrical, Mechanical, Quantity Surveying & Environmental Consultancy. P.O.BOX 201679, Gaborone | Plot 827, Extension 2 Gaborone | Cell: 71966542 / 72554446 | Email: Ndolo Engineers

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