22 Jul 2015

The BCL smelter refurbishment has been undertaken to extend its life by eight to 10 years, the Minister of Minerals, Energy and Water Resources, Mr Kitso Mokaila has said.

Responding to a question from Selebi Phikwe West MP, Mr Mokaila said the shut down was necessary as it was aimed at improving the efficiency of the smelter. The minister said the furnace has been treating lower grade ore, and that it had to be refurbished, especially as they want to establish Selebi Phikwe as a metallurgical hub.

Mr Mokaila said the refurbishment has been estimated to cost P728 million, out of which P191 million or 21 per cent goes to local companies.

Not all refurbishment, he said, could be done by local companies with original equipment manufacturers undertaking the design and engineering aspect.

“There has been a two weeks delay due to the ordering of specific parts and this has not affected the costs and further, the shutdown is still on track,” he said.

He said a study was undertaken and that it was realised that a new smelter would have been costly and, that the shut down would take a long time.

The minister said it was impossible to capacitate local companies as the smelter was refurbished once in five to 10 years.

Meanwhile, Mr Mokaila said Kentz South Africa has expertise in project management and that it  has been engaged in previous refurbishments.

MP Dithapelo Keorapetse had asked the minister to appraise Parliament on the BCL smelter shut down.

He wanted to know how it was different from the past shut downs and its cost. He further wanted the minister to state the amount paid to foreign owned companies and the number of foreigners engaged in the project and their qualifications. Ends