21 Jul 2020

Minister of Mineral Resources, Green Technology and Energy Security, Mr Lefoko Moagi, has implored communities to use natural resources in their localities for development of their areas.

Addressing Hukuntsi leadership before a tour of Zutshwa salt project recently, the minister said communities were endowed with abundant natural resources, therefore their active participation would instill a sense of ownership and also reduce dependency on government.

The salt project had been in existence from 1989, but collapsed in 2004, but resumed operations in 2014.

Therefore, Minister Moagi encouraged public officers to capacitate Qhaa Qhing Conservation Trust in order to increase project efficiency.

Moreover, he urged the Zutshwa salt project management to review its business structure as well as eliminate liabilities and increase assets.

To realise more sales, he encouraged them to consider diversifying their product from just focusing on animal feed, but to process salt for human consumption.

In his remarks, Kgosi Abathine Kabatlhophane of Zutshwa, pleaded with the ministry to assist them with resources to aid their ailing business, which he described as having great potential.

For his part, Zutshwa salt project manager, Mr Lecha Modise, indicated that their production trends were determined by seasons and weather changes.

For instance, he said sales in summer would be low due to abundant animal pastures while in winter the sales would pick.

He, therefore, indicated that they needed innovative equipment to increase production to meet high demand in winter.

In her presentation, deputy district commissioner for Hukuntsi Sub-district, Ms Segomotso Nkwane, said in August 2014 the project was funded at the tune of P5 million by Office of the President under Poverty Eradication Programme.

She said it was again funded with P1.5 million in 2017 after their truck was involved in an accident and noted that the project was not yet sustainable since the proceeds from the sales of the salt were only used for workers’ salaries and other operational expenses.

Ms Nkwane said  in 2017, the Local Enterprise Authority (LEA) was tasked to design a business plan that could make its sustainable and the plan recommended that the ponds be increased to 51.

She said they were increased to 32 and additional 12 ponds were funded through constituency community programme in 2019 to make them 44 against the targeted 51 ponds.

In addition, she said since its inception from 2014 to date ,the total salt produced was at 2 311.34 tonnes.

However, she said the project had not yet reached its full capacity and plans were underway to source additional funds to increase the ponds from 44 to 51 for the project to reach its operational potential.

On other issues, she indicated that COVID-19 had adverse effects on the salt project since the plant was closed on April 2 to May 18, which was a peak period of production.

She said the project had lost about 130 tonnes of salt that could have been produced and about P54 000 was lost in payment of salaries and wages of employees and other expenses.

She said estimated revenue loss was about P70 000 taking into account what was made last year same period. ENDS