21 Nov 2016

Commodity prices have been declining leading to unfavourable cash flow situation for lot of mines across the world including Botswana.

This was said by Mineral Resources, Green Technology and Energy Security, Minister, Advocate Sadique Kebonang, when answering a question in Parliament.

He said the Mines and Minerals Act had a provision empowering the ministry to defer royalty payments from a company to assist in short term cash flow, adding the provision had been used extensively during the past few years to support the base metals and gold mines.

Furthermore, he said Ministry of Mineral Resources, Green Technology and Energy Security would continue to extend the assistance to other mining companies that would find themselves faced with challenges including mines in Boteti area.

Advocate Kebonang said initiatives such as SPEDU were outside the mandate of his ministry, but they would welcome any initiative intended to ensure sustenance of live hoods in mining towns or other areas dependent on mining, post closure of mines.

“This will include initiatives similar to SPEDU and tailor made for the specific areas likely to be affected. In Boteti area a project called Orapa Today-BOTETI Tomorrow is at initially stages with implementation with a view to ensure economic activity continues in Boteti area, even after closure of the mines,“ he said.

Talking about life span of mines in Boteti areas, he said Boteti Mining (PTY) Ltd.’s Karowe Mine (AK06) had resources for 11-13 years from 2012 as an open pit mine depending on the production rates, adding this would potentially convert from open pit to underground if it is proven to be economically viable.

He said BK 11 project had resources for nine years of mining when at the time of licensing in 2010, adding the mine was still under care and maintenance.

As for Orapa and Damtshaa mines, he said they have a life of mine up to the year 2050 on the basis of the current resources, and exploration and technical studies would be done to look into operations post 2050, which would potentially be underground mining.

Boteti Member of Parliament, Mr Sethomo Lelatisitswe had wanted the minister to tell Parliament on strategies in place to curb mine closures in the Boteti area to avoid situations similar to what happened in Selebi Phikwe; if he would consider an initiative similar to SPEDU; if so, when; and to state the life span of each mine in the Boteti area. BOPA