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.
The future of Botswana’s largest copper and silver operation, Khoemacau Copper Mining, looks promising as the new owners, MMG Group, commit to the mine’s expansion plans. MMG, an Australian headquartered company owned by China, has expressed its dedication to doubling Khoemacau’s production and transforming it into one of the most significant high-grade copper operations in Africa.
Nan Wang, the Executive General Manager for Australia and Africa at MMG, stated that while the immediate focus is on maintaining a consistent production level of 60ktpa, there are solid plans to increase Khoemacau’s production capacity. The company aims to double its production from 3.65Mtpa to 8.15Mtpa, resulting in an increase in payable copper from approximately 60ktpa to around 130ktpa.
To achieve this expansion, Khoemacau has completed a pre-feasibility study on the project and a solar power initiative. The next step is to conduct a feasibility study, which will pave the way for increased production capacity. Additionally, Khoemacau has identified extensive exploration opportunities across its license area, positioning the company for an exciting new phase of development.
The current Khoemacau operation reached full production and nameplate capacity in December 2022, following over a decade of investment totaling over P10 billion. This significant investment allowed for an intense exploration program, resulting in the development of the most automated underground mining operation in Botswana. The first concentrate was produced in June 2021, and the product entered the export market in July of the same year. Throughout 2022, the company has been working on the pre-feasibility study for the expansion project, with the feasibility study scheduled for the following year.
The expansion plans will involve the construction of a new world-class process plant in Zone 5, where the current mining of ore takes place. This new plant will be larger than the existing one in Boseto, which currently receives ore from Zone 5. The expansion will also involve the development of new underground mines, including Mango, Zone 5 North, and Zeta North East. These additional mines will bring the total number of underground shafts at Khoemacau to six. The ramp-up of production from the expansion is expected to occur in 2026.
Khoemacau, which acquired assets in the Kalahari Copper Belt after the liquidation of Discovery Metals in 2015, currently employs over 1500 people, with the majority being Batswana. The Khoemacau Mine is located in north-west Botswana, in the emerging Kalahari Copperbelt. It boasts the 10th largest African Copper Mineral Resource by total contained copper metal and is one of the largest copper sedimentary systems in the world outside of the Central African Copperbelt.
The mine utilizes underground long hole stoping as its mining method and conventional sulphide flotation for processing. Resource drilling results have shown the existing resources to have continuity at depth, and there are several exploration targets within the tenement package that have the potential to extend the mine’s life or increase productivity.
The Zone 5 mine has already ramped up production, and further expansion in the next five years will be supported by the deposits in the Zone 5 Group. The estimated mine life is a minimum of 20 years, with the potential to extend beyond 30 years by tapping into other deposits within the tenement package.
In conclusion, the commitment of MMG Group to Khoemacau’s expansion plans signifies a bright future for Botswana’s largest copper and silver operation. With the completion of pre-feasibility and feasibility studies, as well as significant investments, Khoemacau is poised to become one of Africa’s most important high-grade copper operations. The expansion project will not only increase production capacity but also create new job opportunities and contribute to the economic growth of Botswana.
Khoemacau Copper Mining, a leading copper mining company, has recently announced its acquisition by MMG Limited, a global resources company based in Australia. This acquisition marks a significant milestone for both companies and demonstrates their commitment to continued investment, growth, and sustainability in the mining industry.
MMG Limited is a renowned mining company that operates copper and other base metals projects across four continents. With its headquarters in Melbourne, Australia, MMG has a strong track record in mining and exploration. The company currently operates several successful mines, including the Dugald River zinc mine and the Rosebery polymetallic mine in Australia, the Kinsevere copper mine in the Democratic Republic of Congo, and the Las Bambas Mine in Peru. MMG’s extensive experience and expertise in mining operations make it an ideal partner for Khoemacau.
MMG’s commitment to sustainability aligns perfectly with Khoemacau’s values and priorities. Khoemacau has always placed a strong emphasis on safety, health, community, and the environment. MMG shares this commitment and applies the principles of good corporate governance as set out in the Corporate Governance Code of the Hong Kong Listing Rules. As a member of the International Council on Mining and Metals (ICMM), MMG adheres to sustainable mining principles, ensuring responsible and ethical practices in all its operations.
Over the past 12 years, Khoemacau’s current shareholders have made significant investments in the development of the company. With approximately US$1 billion deployed in the project, Khoemacau has successfully transformed from an exploration and discovery phase to a fully-fledged operating copper mine. The completion of the ramp-up of the Zone 5/Boseto operations has set the stage for the next phase of expansion.
With the acquisition by MMG, Khoemacau is poised for an exciting new chapter in its development. The completion of a pre-feasibility study on the Khoemacau expansion and a solar power project has paved the way for increased production capacity. The feasibility study will be the next step in doubling the production capacity from 3.65 million tonnes per annum (Mtpa) to 8.15 Mtpa, resulting in a significant increase in payable copper from approximately 60,000 tonnes per annum (ktpa) to 130,000 ktpa. Additionally, Khoemacau has extensive exploration opportunities across its license area, further enhancing its growth potential.
The CEO of Khoemacau, Johan Ferreira, expressed his gratitude to the current owners for their stewardship of the company and their successful transformation of Khoemacau into a fully operational copper mine. He also highlighted the company’s focus on the expansion study and its vision for the future with MMG. Ferreira emphasized that the partnership with MMG will ensure Khoemacau’s long-term success, delivering employment, community benefits, and economic development in Botswana.
MMG Chairman, Jiqing Xu, echoed Ferreira’s sentiments, stating that the acquisition of Khoemacau aligns with MMG’s growth strategy and vision. Xu emphasized MMG’s commitment to creating opportunities for all stakeholders, including shareholders, employees, and communities. He expressed confidence in Khoemacau’s expansion potential and the company’s ability to realize its full potential with the support of MMG.
The sale of Khoemacau to MMG is subject to certain conditions precedent and approvals, with the expected closing date in the first half of 2024. This acquisition represents a significant step forward for both companies and reinforces their commitment to sustainable mining practices, responsible resource development, and long-term growth in the mining industry.
In conclusion, the acquisition of Khoemacau Copper Mining by MMG Limited signifies a new era of investment, growth, and sustainability in the mining industry. With MMG’s extensive experience and commitment to responsible mining practices, Khoemacau is well-positioned for future success. The partnership between the two companies will not only drive economic development but also ensure the safety and well-being of employees, benefit local communities, and contribute to the overall growth of Botswana’s mining sector.
The Botswana Power Corporation (BPC) has taken a significant step towards diversifying its energy mix by signing a power purchase agreement with Sekaname Energy for the production of power from coal bed methane in Mmashoro village. This agreement marks a major milestone for the energy sector in Botswana as the country transitions from a coal-fired power generation system to a new energy mix comprising coal, gas, solar, and wind.
The CEO of BPC, David Kgoboko, explained that the Power Purchase Agreement is for a 6MW coal bed methane proof of concept project to be developed around Mmashoro village. This project aligns with BPC’s strategic initiatives to increase the proportion of low-carbon power generation sources and renewable energy in the energy mix. The use of coal bed methane for power generation is an exciting development as it provides a hybrid solution with non-dispatchable sources of generation like solar PV. Without flexible base-load generation, the deployment of non-dispatchable solar PV generation would be limited.
Kgoboko emphasized that BPC is committed to enabling the development of a gas supply industry in Botswana. Sekaname Energy, along with other players in the coal bed methane exploration business, is a key and strategic partner for BPC. The successful development of a gas supply industry will enable the realization of a secure and sustainable energy mix for the country.
The Minister of Minerals & Energy, Lefoko Moagi, expressed his support for the initiative by the private sector to develop a gas industry in Botswana. The country has abundant coal reserves, and the government fully supports the commercial extraction of coal bed methane gas for power generation. The government guarantees that BPC will purchase the generated electricity at reasonable tariffs, providing cash flow to the developers and enabling them to raise equity and debt funding for gas extraction development.
Moagi highlighted the benefits of developing a gas supply industry, including diversified primary energy sources, economic diversification, import substitution, and employment creation. He commended Sekaname Energy for undertaking a pilot project to prove the commercial viability of extracting coal bed methane for power generation. If successful, this initiative would unlock the potential of a gas production industry in Botswana.
Sekaname Energy CEO, Peter Mmusi, emphasized the multiple uses of natural gas and its potential to uplift Botswana’s economy. In addition to power generation, natural gas can be used for gas-to-liquids, compressed natural gas, and fertilizer production. Mmusi revealed that Sekaname has already invested $57 million in exploration and infrastructure throughout its resource area. The company plans to spend another $10-15 million for the initial 6MW project and aims to invest over $500 million in the future for a 90MW power plant. Sekaname’s goal is to assist BPC in becoming a net exporter of power within the region and to contribute to Botswana’s transition to cleaner energy production.
In conclusion, the power purchase agreement between BPC and Sekaname Energy for the production of power from coal bed methane in Mmashoro village is a significant step towards diversifying Botswana’s energy mix. This project aligns with BPC’s strategic initiatives to increase the proportion of low-carbon power generation sources and renewable energy. The government’s support for the development of a gas supply industry and the commercial extraction of coal bed methane will bring numerous benefits to the country, including economic diversification, import substitution, and employment creation. With the potential to become a net exporter of power and a cleaner energy producer, Botswana is poised to make significant strides in its energy sector.