22 Oct 2015

The commissioning of the Pula Steel Manufacturing and Casting Plant as part of the BCL Mine’s Polaris II Strategy, is a milestone that has to be commended, BCL Mine managing director Mr Dan Mahupela has said.

He said the completion of the plant confirms the miner’s intention to adress  the shortcomings that haunted BCL and the Selebi Phikwe region for many years.

Speaking during the official opening of Pula Steel Manufacturing and Casting Plant where Vice President Mr Mokgweetsi Masisi officiated on, Mr Mahupela explained that the Polaris II Strategy is a business approach that seeks to effectively expand BCL’s portfolio by leveraging the company’s technical capacity in mineral extraction and processing built over 45 years.

He said the strategy not only aims at growing BCL’s business capacity, but will also benefit the town of Selebi Phikwe and the SPEDU region at large.

He said for BCL to accomplish its strategic pillar of developing an iron production circuit, and as a significant producer of scrap metal in the country, BCL acquired 50.5 per cent shareholding in Pula Steel.

He said that they are fully aware of the abundance of scrap metal in Botswana which has been exported at high volumes. He said Botswana has abundant iron ore deposits and coal reserves covering more than half the country.

“Steel is a basic commodity, which is required by any developing economy, mainly for infrastructure development projects in the SADC region and demand surpasses supply. Africa is the next continent to drive the world economy and demand for steel in the continent will continue to grow. 

Pula Steel is therefore in the right place at the right time,” he said.

 He went on to state that initially the Pula Steel Plant was planned to produce 80 tonnes of billet per day, however, there was a change in scope during project implementation, which included variation in the intended output of 80 tonnes to 240 tonnes of billet a day. 

As a result, he said some elements were brought forward and affected a number of components and processes of the plant such as a major modification in the power configuration from the initial 5.5 MVA to 15 MVA.

He said the change in the approach to deliver the project led to increased capital required to P130 million against the P40 million initially planned. He said the BCL Mine Board of Directors approved an additional investment of up to P53 million early this year as a result of the change in the scope to ensure that the project is delivered. 

Through the strategy, BCL Mine is carrying out exploration for iron ore around Ikongwe in Mahalapye West area and Barolong farms. ENDS