Orapa Mine, the world‘s largest by area will continue mining up to just over 2050 , Orapa Letlhakane & Damtshaa(OLDM) Mines General Manager Bakani Motlhabani revealed on the sidelines of the OLDM 50 Years Anniversary Celebrations in Orapa recently.
Debswana 50 year’s celebrations were held concurrently around three sites, being OLDM, Jwaneng & the Stakeholders offering hosted by the Gaborone head office. When giving welcome remarks at the event Motlhabani explained that being a mining outfit, OLDM community doesn’t play in the space of the glitz and glamour associated with the sparkle of the finished diamond product.
“What we are familiar with is the rhythm and rumbling sounds associated with open pit drilling, blasting, loading and ore processing components hauling and winding 24 hours a day, 7 days a week and 356 days a year. From all these our people unearth gems that transform the lives of many across the world” he said.
Motlhabani explained that OLDM with its three sites produce diverse diamond products, both in volume and quality. “We have the fancy gems from Letlhakane & Damtshaa Mine and the industrial diamonds from Orapa Mine. From 1971 to end of 2018 we have recovered approximately 400 million carats” he said.
Signaling the mine’s ambitious future plans Motlhabani shared that the operation will going forward embrace technology to continue delivering increased shareholder value “As we tread into the interesting and exciting world of technology, innovation and creativity, we are finding it easier and even safer ways of recovering our resource resulting in even better performance results” he said.
Orapa Mine was discovered in 1967 by a team of De Beers geologists led by Manfred Marx. It became fully operational in July 1971 when it was officially opened by the then President of Botswana, His Excellency Sir Seretse Khama. Currently Orapa is mining at a depth of 250 metres and is expected to reach 450 metres by 2026.
The resource consists of one volcanic pipe that separates into two distinct pipes at depth, namely north and south pipes which erupted through Transvaal strata and the overlying Karoo sediments over 200 million years ago. Production normally varies according to mining plans at an average of 12 million carats per year. In 2014, Orapa produced 12 073 522 carats.
Motlhabani said in the past the equipment used in diamond recovery in the 1990s was archaic and not very efficient. “Old x-ray machines were replaced with energy efficient channel displacement machines that led to greater accuracy in recovery without relying on human intervention” he said explaining that it was such advancements that enabled the discovery of Okavango Blue, one of the rarest mineral finds in global history.
The 41.11carats stone was unearthed from the underground terrains of the wide spread AK1 pit of Orapa Mine and recovered at Plant 2 late last year then unveiled in May this year as a 20.46 carat oval shaped precious blue diamond after cutting & polishing. The highly anticipated Orapa Mine expansion was also hinted by Debswana Managing Director Albert Milton at the stakeholder appreciation party held at the Gaborone International Conventions Centre (GICC) the same day.
Currently the mine is relocating an over 500m spread dump on the south side of the pit to the far western side to give way for Cut 3 core extraction boreholes. OLDM also recently closed and decommissioned Slurry Dams 2, a fines residual disposal facility that has been operating for years. The dam has been receiving residues from Orapa No.1 & 2 Plants.
The Mine now developing a world class 6 cell fines residual disposal facility to accommodate Orapa Mine’ s remaining cut 2 ore processing and further take in residues from Cut 3 and beyond. Milton hinted that studies were underway to assess the feasibility of the Cut 3 project with anticipation to expand the mine‘s lifespan by over 30 years.
Cut 3 will involve stripping away waste at the bottom of the mine, as well as widening and deepening the pit. The mine is expected to increase its fleet of trucks from the current 23 to 58. Works to give way for Cut 3 also include relocation of Training Centre and Primary Crashers. Still at the OLDM 50th Anniversary event Vice President of Botswana and also Member of Parliament for Boteti West Slumber Tsogwane said 50 years ago, on 23rd June, a partnership that carried the lives and hopes of many generations of Batswana was born. The Vice President noted that OLDM has been a key driver of development in the Boteti Sub District especially in the areas of Health and Education.
He highlighted that Orapa Hospital has enabled access to improved health care for communities in its sphere of influence. The facility operates as a referral hospital for all village around Orapa and the entire Boteti Sub District, catering for a resident population of approximately 10 000 and regional catchment area of over 54 000 people.
Resident Director of De Beers Holdings Botswana Mr Neo Moroka said the 50th Anniversary brings another opportunity of a re-looking at how Debswana can further pursue global benchmark levels and continue to play a pivotal role in Botswana’s next economic transformation agenda. “This is an opportunity to consider how our iconic company can continue to be an enabler in our common journey towards realizing the goals of our Long Term 2036 Vision,” he said.
Despite Covid-19 interrupting trade worldwide, exporting companies in Botswana which benefited from the Botswana Investment and Trade Centre (BITC) services realised P2.96 billion in export earnings during the period from April 2020 to March 2021.
In the preceding financial year, the sale of locally manufactured products in foreign markets had registered export revenue of P2, 427 billion against a target of P3, 211 billion BITC, which celebrates 10 years since establishment, continues to carry out several initiatives targeted towards expanding the Botswana export base in line with Botswana’s desire to be an export led economy, underpinned by a robust export promotion programme in line with the National Export Strategy.
The main products exported were swamp cruiser boats, pvc tanks and pvc pipes, ignition wiring sets, semi-precious stones, veterinary medicines, hair braids, coal, textiles (towels and t-shirts) and automobile batteries. These goods were destined mainly for South Africa, Zimbabwe, Austria, Germany, and Namibia.
With Covid-19 still a problem, BITC continues to roll out targeted virtual trade promotion missions across the SADC region with a view to seeking long-lasting market opportunities for locally manufactured products.
Recently, the Centre facilitated participation for Botswana companies at the Eastern Cape Development Council (ECDC) Virtual Export Symposium, the Botswana-Zimbabwe Virtual Trade Mission, the Botswana-Zambia Virtual Trade Mission, Botswana-South Africa Virtual Buyer/Seller Mission as well as the Botswana-Namibia Virtual Trade Mission.
BITC has introduced an e-Exporting programme aimed at assisting Botswana exporters to conduct business on several recommended e-commerce platforms. Due to the advent of COVID-19, BITC is currently promoting e-trade among companies through the establishment of e-commerce platforms and is assisting local companies to embrace digitisation by adopting e-commerce platforms to reach export markets as well as assisting local e-commerce platform developers to scale up their online marketplaces.
During the 2019/2020 financial year, BITC embarked on several initiatives targeted at growing exports in the country; facilitation of participation of local companies in international trade platforms in order to enhance export sales of local products and services into external markets.
BITC also helped in capacity development of local companies to compete in global markets and the nurturing of export awareness and culture among local manufacturers in order to enhance their skills and knowledge of export processes; and in development and implementation of trade facilitation tools that look to improve the overall ease of doing business in Botswana.
As part of building export capacity in 2019/20, six (6) companies were selected to initiate a process to be Organic and Fair Trade Certified. These companies are; Blue Pride (Pty) Ltd, Motlopi Beverages, Moringa Technology Industries (Pty) Ltd, Sleek Foods, Maungo Craft and Divine Morula.
In 2019 seven companies which were enrolled in the Botswana Exporter Development Programme were capacitated with attaining BOBS ISO 9001: 2015 certification. Three (3) companies successfully attained BOBS ISO 9001:2015 certification. These were Lithoflex (Pty) Ltd, General Packaging Industries and Power Engineering.
BITC’s annual flagship exhibition, Global Expo Botswana (GEB) to create opportunities for trade and strategic synergies between local and international companies. The Global Expo Botswana) is a premier business to business exposition that attracts FDI, expansion of domestic investment, promotion of exports of locally produced goods and services and promotion of trade between Botswana and other countries.
The portal also provides information on; measures, legal documents, and forms and procedures needed by Botswana companies that intend on doing business abroad. BITC continues to assist both potential and existing local manufacturing and service entities to realise their export ambitions. This assistance is pursued through the ambit of the Botswana Exporter Development Programme (BEDP) and the Trade Promotion Programme.
BEDP was revised in 2020 in partnership with the United Nations Development Programme (UNDP) with a vision to developing a diversified export-based economy. The programme focuses mostly on capacitating companies to reach export readiness status.
Prices for goods and services in this country continue to increase, with the latest figures from Statistics Botswana showing that in May 2022, inflation rate rose to 11.9 percent from 9.6 percent recorded in April 2022.
According to Statistics Botswana update released this week, the largest upward contributions to the annual inflation rate in May 2022 came from increase in the cost of transport (7.2 percent), housing, water, electricity, gas & other Fuels (1.4 percent), food & non-alcoholic beverages (1.1 percent) and miscellaneous goods & services (0.8 percent).
With regard to regional inflation rates between April and May 2022, the Rural Villages inflation rate went up by 2.5 percentage points, from 9.6 percent in April to 12.1 percent in May 2022, according to the government owned statistics entity.
In the monthly update the entity stated that the Urban Villages inflation rate stood at 11.8 percent in May 2022, a rise of 2.4 percentage points from the April rate of 9.4 percent, whereas the Cities & Towns inflation rate recorded an increase of 1.9 percentage points, from 9.9 percent in April to 11.8 percent in May.
Commenting on the national Consumer Price Index, the entity stated that it went up by 2.6 percent, from 120.1 in April to 123.2 in May 2022. Statisticians from the entity noted that the transport group index registered an increase of 7.3 percent, from 134.5 in April to 144.2 in May, mainly due to the rise in retail pump prices for petrol and diesel by P1.54 and P2.74 per litre respectively, which effected on the 13th of May 2022.
The food & non-alcoholic beverages group index rose by 2.6 percent, from 118.6 in April 2022 to 121.6 in May 2022 and this came as a result of increase in prices of oils & fats, vegetables, bread & cereal, mineral waters, soft drinks, fruits & vegetables juices, fish (Fresh, Chilled & Frozen) and meat (Fresh, Chilled & Frozen), according to the Statisticians.
The Statisticians said the furnishing, household equipment & routine maintenance group index rose by 1.0 percent, from 111.6 in April 2022 to 112.7 in May 2022 and this was attributed to a general increase in prices of household appliances, glassware, tableware & household utensils and goods & services for household maintenance.
The prices for clothing & footwear group index moved from 109.4 to 110.4, registering a rise of 0.9 percent during the period under review. Bank of Botswana has projected higher inflation in the short term, associated with the likelihood of further increases in domestic fuel prices in response to persistent high international oil prices and added that the possible increase in public service salaries could add also upward pressure to inflation in this country.
In the latest June 2022 global economic prospects, released last week the World Bank has warned that low global economic growth and economic activity in global commodity markets such as China and Europe could negatively affect export revenues for Botswana and other Sub Saharan countries.
Recent data from Statistics Botswana show that Botswana’s exports destined to the global markets such as Asia and the European Union (EU) on monthly basis accounts for around 60.1 percent and 20.1 percent respectively.
The World Bank last week lowered its 2022 projections of global economic growth and indicated that the new forecasts could be bad news for countries like Botswana who are dependent on export mineral revenues. The Bank noted that just over two years after COVID-19 caused the deepest global recession since World War II, the world economy is again in danger and stated that this time it is facing high inflation and slow growth at the same time.
In the recent June projections, the bank lowered its forecast of global economic growth from the January 4.1 percent to 2.1 percent. “Our June forecasts reflect a sizable downgrade to the outlook: global growth is expected to slow sharply from 5.7 percent in 2021 to 2.9 percent this year. This also reflects a nearly one-third cut to our January 2022 forecast for this year of 4.1 percent,” a team of World Bank economists noted in the June 2022 Global Economic Prospects.
The World Bank indicated that exports from Botswana and other Sub Saharan countries could suffer from a substantial deceleration of activity in China and Europe. The Bank noted that exporters of industrial metals, crude oil, and ores such as Angola, Democratic Republic of Congo, Republic of Congo, South Africa, and Zambia could suffer from a substantial deceleration of activity in China.
On the other hand a sharp contraction of growth in the euro area could hurt exporters of agricultural products such as beef, coffee, tea, tobacco, cotton, and textiles from Botswana, Ethiopia, Madagascar and Malawi. “The faster-than-expected deceleration of the global economy and increased volatility of commodity prices could hurt many SSA commodity exporters,” said World Bank President David Malpass.
Malpass indicated that subdued growth in the global markets for Botswana and other Sub Saharan exports will likely persist throughout the decade because of weak investment in most of the world.
He noted that with inflation now running at multi-decade highs in many countries and supply expected to grow slowly, inflation could remain higher for longer than currently anticipated. “Even if a global recession is averted, the pain of stagflation could persist for several years— unless major supply increases are set in motion. Amid the war in Ukraine, surging inflation, and rising interest rates, global economic growth is expected to slump in 2022. Several years of above-average inflation and below-average growth are now likely,” said Malpass.