30 Jul 2020

Majwe mining is a contract Company that is jointly owned by Thiess Mining  and Bothakga Burrow with 70 and 30 per cent stake respectively.

This was said by Minister of Mineral Resources, Green Technology and Energy Security, Mr Lefoko Moagi when answering  a question in Parliament on July 29. 

He said Majwe Mining was engaged in mining contract work for Debswana Diamond Company at Jwaneng mine and was currently mining Cut 9.

He further highlighted that the current contract was a nine-year agreement running from 2019 to 2027 and planned to mine 194.2 million BCMs at a total cost of P12.4 billion.

He said Bothakga Burrow was a citizen owned and registered company.

Mr Moagi explained that at the time of the award, Majwe mining  was considered to have access to specialised skills and equipment which could benefit Debswana due to its international footprint, through the major shareholder, Thiess Mining.

He cited an example of small diameter autonomous drilling rigs, which improved the safety of drilling close to the highwalls.

He said Cut 9 was adjudicated on a weighted average of a number of factors including safety, health and environment performance, technical capability, performance and track record, project delivery methodology, commercial value proposition and citizen economic empowerment.

He further indicated that Majwe mining  had met most of its contractual obligations since it started mining in Debswana, adding that on a number of occasions due to market conditions Debswana had to alter production volumes to conserve cash, including in 2020. 

The minister further said Majwe Mining’s production performance was managed through the contract using a rolling three-month measure.

“Where Majwe Mining production drops below the required production targets, they are contractually obligated to source additional equipment at their own costs to rectify the deficit,” he concluded.

Minister Moagi was answering a question from Gaborone Bonnington South MP Mr Christiaan Greeff who had wanted to know who owned Majwe Mining, the stake of what stake of citizen registered companies in Majwe Mining as well as the total value of their contract and duration.

Mr Greeff also asked if Majwe mining brought with them any skills, and or equipment for them to be awarded the said contract and whether Majwe had ever reached its yearly production target since it started contract mining for Debswana. end