11 Nov 2020

The ongoing market challenges and diminished revenues as a result of the global economic recession induced by COVID-19 has prompted Debswana to accelerate implementation of its transformation programme.

According to a press release on Debswana update on 2024 strategy and Orapa Letlhakane and Damtshaa Mines (OLDM) asset closures, at the forefront of the accelerated long term initiatives is the retirement of two assets at OLDM operation.

The two assets were permanent closure of the aged Orapa Mine Plant 1, which is 48 years old and placement of Damtshaa Mine, a marginal operation under care and maintenance.

The release states that it that the company is still in consultations with Botswana Mine Workers’ Union and the broader employee base, to explore various options, which included possible redeployment of employees to other areas of the business and voluntary mutual separation.

It says Orapa Mine Plant No1 started running in 1972, and has served the company well and plans had been in pipeline for some time to shut it down completely due to low profitability, structural deterioration that presented increasing challenges regarding safety management as well as high expenditure on structural repairs  and operating costs.

The release emphasises  that OLDM assets closure initiative is not a reaction to COVID-19 impacts, but rather a pre-existing strategy that commenced before COVID-19 crisis, to address current mining complexities and to set the company on course toward achieving long term objective to modernize mining operations.

The strategic initiatives will transform Debswana with a strong emphasis on more effective use of technology and data, digitisation and automation.

Some of the initiatives that were in the pipeline may consequently impact on structure, labour, amongst other factors, particularly with the outcomes of innovations around automation and digitization as well as potential outsourcing options.

 Debswana it says is fully cognizant of the current limitations provided by regulations under State of Public Emergency with regard to employee rationalisations.

Further Debswana reassured employees and the public at large that the process is being executed conscientiously under the guidance of applicable regulations. BOPA