01 Jun 2014

The signing of a bilateral agreement between Botswana and Namibia to construct a Trans-Kgalagadi railway line to transport coal from Botswana to Walvis Bay port has been described as a significant milestone.

Speaking at a Botswana Chamber of Mines cocktail dinner held in Maun recently, Maun prominent businessman, Mr John Wellio said such an infrastructural development would contribute greatly to the Gross Domestic Product (GDP) of both countries.

Mr Wellio also called for local business participation, adding that locals should not be made spectators in such an enormous project where huge sums of money would be invested.

He said he was delighted that the railway line would open alternative route to SDAC, as he had been informed that there would be rail access to South Africa and Mozambique ports through Zimbabwe.

The Maun businessman the coal resource would also go a long way to address the government’s diversification efforts. He however said, the abundance of coal resource also brings with it numerous challenges such as environmental issues.

“The world has become greener and coal does not fit into the category of a clean environment”, hence the need to have technological developments and innovations that would enable its marketability, he said.

Mr Wellio noted that the mining industry, through the Botswana Chamber of Mines was going through an exercise aimed at developing the country’s economy by way of diversifying the procurement process to focus on local products and services.

This, he said would assist in building up the required services/products in the country and translate to cheaper delivery and reduced cost for member companies operations.

Furthermore, he said the International Council on Mining and Metals (ICMM) has been at the forefront researching to assist the mining industry on environmental issues.

“Mining is naturally destructive to the environment and the industry must find ways to alleviate the destruction to rehabilitate post mining activities such that communities around the mining areas can associate and support the mining industry,” he said.

Mining entities, he said contribute directly to the government through the tax system and they can also assist in the development of communities through corporate social investment.

On skills availability, Mr Wellio said it remains a challenge to all businesses despite that the government was spending much on education,  as the “the resultant skills are not necessarily appropriate for the industry requirements leading to high unemployment.

The mining industry, he added has also developed its own skills through similar programmes and this has worked well over years.  ‘Skills development must remain a key component of the industry with continuous injection of funds into such programmes,” he said.

He commended the mining industry for recording a relatively good safety record over the past five years with an average lost time injury frequency rate of 0.32.

Mr Wellio also reminded member companies that to achieve productivity levels that would ensure long term viability, the mining industry should take steps to improve the health of its workers and eliminate working conditions that were likely to cause undesirable health status to the employees.

He called on the industry to work ahead of SADC policies and implement systems that would find favour with other mining companies.

SADC, he said was working on harmonizing mining policies which would include the health of employees during and post-employment.

Furthermore, Mr Wellio said exploration activities done in the past seeking copper and other base metals merited the desired minerals in the North West district, although economics did not support such activities to develop into mining.  

He however said the significant developments made towards this area guarantee outstanding progression, adding that the Ministry of Minerals, Energy and Water Resources was  in the process of upgrading the power line into Maun, which would lead to the extension of the line to Gantsi, Shakawe and eventually reach Kasane. Ends