Back in April 2017 Minergy Limited listed on the main board of the Botswana Stock Exchange (BSE) with the objective of utilising its 100% owned 390-million tonne Masama Coal Project in the Mmambula Coalfield to become a preeminent coal mining and trading company in southern Africa.
As the Company’s Chief Executive Officer (CEO) Andre Bojé successfully steered the Company through its listing and mine development after having conceived a company strategy that has positioned the Company to achieve its objective of becoming a significant player in southern African coal mining and trading. On 14 May 2019, Minergy announced that Bojé would be retiring but importantly that he would remain involved in the company to retain oversight and strategic responsibility for group coal marketing and sales for a period of 12 months.
He will also remain part of the team tasked with ensuring the successful listing of Minergy on the Alternative Investment Market (AIM) of the London Stock Exchange. Boje said: “The project is at a stage where it needs hands on executive attention so it’s the right time to step back” and added that “there is an excellent team in place to progress Masama to where we have consistently believed it should be, one of the leading coal suppliers in the southern African region”.
Mokwena Morulane, Non-Executive Chairperson of Minergy, said that Bojé had been the driving force behind taking the project through a multitude of steps, both regulatory and physical, including the listing on the BSE. “Thanks to this, it is now a viable operating coal mine. Andre’s outstanding management, deep understanding of the coal industry and his tenacity are the reasons why we have a workable project today.” He added that retaining Bojé’s expertise in the business for a period of time will allow a smooth transition and cement the establishment of the Masama Coal Project and CEO succession.
Following this, the Minergy Board has announced that Morne du Plessis has been appointed as CEO designate and will step into the position of CEO on 1 August 2019. An extensive candidate selection process, led by Minergy’s Remuneration and Nomination Committee, included both internal and external candidates, ensuring that the Board was in a position to appoint the most qualified and experienced person to fill the role previously held by Boje.
Mr. du Plessis, currently the Chief Financial Officer (CFO) has extensive experience in southern African coal mining and trading sector, particularly in South Africa. He is a chartered accountant with an MBA from Heriot Watt University in Edinburgh, Scotland and has held top management positions for several coal mining and trading groups, including contract mining and beneficiation service provider Genet SA, junior coal miner Umcebo Mining Group, and Johannesburg Stock Exchange listed junior coal miner and trader, Wescoal Holdings Limited.
Du Plessis has been a Director on the Board of the Minergy since January 2017 and has been an integral part of the operational team that developed the Masama project. Commenting on the new appointment, Morulane said that du Plessis’ extensive experience in coal mining and trading, particularly in southern African but also internationally, and his significant listed public company director experience was a significant factor in the Board’s decision to appoint him as CEO.
“He also has a deep and practical understanding of the requirements to implement a modern mining project, with his tenure as Minergy’s CFO giving him in-depth knowledge of Minergy’s flagship Masama Project, in order to bring it into full production over the coming months.” The commitment to growth within Minergy is further underpinned with several additional appointments having been made recently, including those of Financial Manager Julius Ayo, General Manager of Mining Siyani Makwakwago, and SHE Manager Herbert Kebafetotse.
“I am extremely proud of these appointments for a number of reasons,” said du Plessis, adding that these senior managers are highly skilled, knowledgeable and embrace the Minergy culture of ensuring training across the organisation in order to fulfil the company’s mandate of ensuring a viable coal sector in Botswana.”
“Work is demanding and at the same time very rewarding. I feel that I am part of something big which will create opportunities and transform the lives of many Batswana,” said Ayo. He went on to indicate that that a goal for the finance team is “to ensure the mine remains financially sustainable through effective cost management, disciplined adherence to financial systems, and prudent revenue optimisation”.
New colleague Siyani Makwakwago added to this, saying he believes that the Minergy culture allows people to express their views openly, thereby promoting a diverse approach to resolving any potential issues. “Minergy has afforded me an opportunity to explore my capabilities to the fullest in dealing with varied experiences in a brown field project. Every day is different, interesting and challenging, and I always looking forward to the next day.”
He and the team are looking forward to the day they start feeding coal sustainably and safely through the washing plant and have quality product out through the mine gate onward to customers. SHE Manager Herbert Kebafetotse believes that employees at Minergy have a once in a lifetime opportunity in terms of being part of the construction, commissioning and operation of a potential giant in Botswana’s coal mining history. “The euphoria created by the prospects of bringing an open pit coal mine to its full potential has created a culture of togetherness and team work that will collectively ensure the commissioning and operation of the mine is successful.”
Kebafetotse added that, from a personal perspective, being part of a new operation, with the excitement of starting things from scratch came with a lot of pressure to do so successfully, was what he enjoys most. “From a SHE team perspective, we intend making this the model mine in Botswana by achieving an LTIFR of zero in our first year and thereafter improving on this performance to go beyond the philosophy of ‘zero harm’. To achieve this, we need commitment from all employees, supervisors and managers, and the team is eager to provide a framework for managers to lead the way towards a safe culture at the mine.”
Above and beyond these senior appointments, Martin Bartle, the Managing Director of Minergy Coal (Pty) Ltd has responsibility for the overall performance of the company embracing profitability, mining operations, processing and safety. Minergy has furthermore opened local offices in the villages of Medie and Lentsweletau primarily to ensure that detailed skills audits are conducted and also provide a contact point for various communities to interact with the project. At the moment, of the 246 employees on the mine site, 236 or 96% are Batswana.
Training at the mine site is taking place, mainly through subcontractors, and primarily involving machine operation. “As we transition from the project phase to full production, a vast amount of training will continue to take place and, in this phase, we will really be building coal expertise within Botswana,” du Plessis assured. Bojé said that the company and the mining operation is in good standing and that executive management, as well as mine and technical management, are well equipped to take the project forward successfully.
“I am confident that the operation is in good hands,” he said. In conclusion, du Plessis reiterated Minergy’s ongoing commitment to foster skills development in Botswana, coupled with ensuring the company’s social conscience is directed at uplifting the surrounding villages, such as the recent connection of the local Medie village to the Botswana Power Corporation electrification grid and other planned projects. “This is the right thing to do and we will ensure that we are remembered for our care as well as our knowledge of the coal sector, which we want to ensure remains a skill set that can be sustained in Botswana.”
The Bulb World Chief Executive Officer (CEO) and entrepreneur, Ketshephaone Jacob has been selected as a 2021 Top 50 Africa’s Business Hero.
Jacob was chosen from a pool of 12,000 applicants – many of whom are highly-skilled and accomplished entrepreneurs.
Africa’s Business Hero, sponsored by technology entrepreneur, Jack Ma, aims to identify, support and inspire the next generation of African entrepreneurs who are making a difference in their local communities, working to solve the most pressing problems, and building a more sustainable and inclusive economy for the future.
The initiative is as inclusive as possible and applications were open in English and French to entrepreneurs from all African countries, all sectors, and all ages who operate businesses formally registered and headquartered in an African country, and that have a 3 year-track record.
Every year, finalists are selected to compete in the ABH finale pitch competition and participate in a TV Show that will be broadcast online and across the continent.
The finalists will compete for a share of US $1.5 million in grant money.
The Bulb World, is home grown LED light manufacturing company, which was partly funded by Citizen Entrepreneurial Development Agency (CEDA) at the tune of P4 million, to manufacture LED lighting bulbs for both commercial and residential use in 2017.
The Bulb World operate from the Special Economic Zone of Selibe Phikwe. Early this year, The BulB World announced its expansion to South Africa, setting in motion its ambitious Africa expansion plan.
During the first quarter of 2021, production in Botswana’s economic nucleus- the mining sector contracted by 12 percent. This is according to Mining Production Index released by Statistics Botswana this week.
The country’s central data body revealed that Index of Mining production stood at 74.4 during the first quarter of 2021, showing a negative year on-year growth of 12.0 percent, from 84.6 registered during the first quarter of 2020.
The main contributor to the decline in mining production came from the Diamonds sector, which contributed negative 11.7 percentage points. Soda Ash was the only positive contributor in the mining production, contributing 0.1 of a percentage point. However Soda Ash’s contribution was insignificant to offset the negative contribution made by Diamonds.
The quarter-on-quarter analysis by Statistics Botswana experts shows an increase of 16.3 percent from the index of 64.0 during the fourth quarter of 2020 to 74.4 observed during the period under review.
Diamond production decreased by 12.1 percent during the first quarter of 2021 compared to the same quarter of the previous year. The decrease was as a result of planned strategy to align production with weaker trading conditions mostly linked to Covid-19 protocols restrictions.
Botswana’s diamond sector is underpinned by Debswana, the country’s flagship rough producer- a 50-50 joint venture between government and global mining giant De Beers Group. The other producer is Canadian based Lucara Diamond Corp through its wholly owned Karowe Mine which is a relatively small but significant production that has made a name for itself worldwide with rare diamond recoveries of unprecedented carat size.
On the other hand, quarter-on quarter analysis shows that production has improved, registering a positive growth of 17.5 percent during the first quarter of 2021 compared to the preceding quarter – 2020 Q4.
Though production was significantly lower in the first quarter, the two producers ended Q2 with rare diamond recoveries. Debswana early last month found the world’s third largest gem diamond – weighing 1098 carat at Jwaneng Mine, its flagship gem quality diamonds producer, also regarded the world’s richest diamond mine.
A week later Lucara announced its second biggest recovery, the 1174 carat clivage near-gem dug from its Karowe Mine. The diamond is the world third in carat size after the plus-3000 carat Cullinan found in South Africa back in 1905 and the 1758 carat Sewelo unearthed at its Karowe mine in 2019. Debswana and Lucara are investing billions of pulas in underground mining projects to extend the life of its mines, Jwaneng & Karowe respectively.
In terms of Gold which is produced at Mupani mine near Botswana’s second city of Francistown output decreased by 17.9 percent during the first quarter of 2021 compared to the same quarter of the previous year.
Similarly, quarter-on-quarter analysis reflects that production decreased by 21.4 percent during the first quarter of 2021, compared to the preceding quarter. The decrease was as a result of the deteriorating lifespan of the mine as well as the impact of COVID-19 which slowed down the mining activities.
Soda Ash production increased by 11.1 percent during the first quarter of 2021 compared to the same quarter of the previous year. In terms of quarter-on-quarter Soda Ash production also showed an increase, picking up by 2.1 percent during the period under review. The increase in production is attributable to the effectiveness of the plant following refurbishment which occurred in the third quarter of 2020.
Salt production decreased by 34.0 percent during the first quarter of 2021, compared to the same quarter of the previous year. Similarly, the quarter-on-quarter analysis shows that salt production registered a decrease of 32.9 percent during the period under review. Both salt and Sodash are produced by partly government owned Botswana Ash (BotsAsh) operating from Sowa town near Makgadikgadi pans.
Coal production decreased by 11.2 percent during the first quarter of 2021, compared to the corresponding quarter of the previous year. The decrease was attributed to the reduced demand from Morupule B Power Station following the remedial works being undertaken, as one boiler was in operation during the period under review.
Although production fell, Statistics Botswana says there was no shortfall in supply of coal due to stockpiling. On the other hand, the quarter-on-quarter comparison shows that coal production increased by 20.4 percent compared to the preceding quarter.
Botswana’s flagship coal producer is Morupule Coal Mine; a wholly state owned mining company located in Palapye producing primarily for Botswana Power Corporation (BPC)’s power generation plants Morupule A & B.
The other coal producer is Botswana Stock Exchange listed Minergy which operates a 390 MT Coal Resource mine in Masama near Media in the southwestern edge of the Mmamabula Coalfields.
Department of Mines in the Ministry of Mineral Resources, Green Technology & Energy Security has awarded mining licence to Tshukudu Metals-a subsidiary of Aussie firm Sandfire Resources ,giving the company a green light to start piecing the ground at its Motheo Copper Project near Gantsi.
Lefoko Moagi, minister in charge of mineral resources in Botswana confirmed to weekendpost on Tuesday. Minister Moagi revealed that “the licence has been approved , but Sandfire Resources as a listed company will report to its shareholders and investors then make an official public statement” he said.
Based on a forecast copper price of US$3.16/lb (reflecting current long-term consensus pricing) the Base Case 3.2Mtpa – Ghantsi copper project is forecast to generate US$664 million (over P7 billion) in pre-tax free cash-flow and US$987 million (over P10 billion) in EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation), at a forecast all-in sustaining cost of US$1.76/lb over its first 10 years of operations.
In December 2020, the Board of Sandfire Resources approved the commercial development of the Motheo Copper Mine located in the Kalahari Copper Belt in Botswana, marking a key step in its transformation into a global, diversified, and sustainable mining company.
Tshukudu Metals Botswana (Pty) Limited (Tshukudu) a 100% owned subsidiary will be the owner and operator of the Motheo Copper Mine which is scheduled to produce up to 30,000 tonnes per annum of copper in concentrate over a 12 year mine life.TMB is targeting development of its Motheo Copper Mine in 2021 and 2022, with its first production in 2023.
GOVERNMENT NOT TAKING UP 15 % STAKE ON OFFER
Beginning of this year presentations were made to the Department of Mines as part of the Mining Licence approval process and to the Ghanzi Regional Council, additional information was requested by Department of Mines in April and was duly supplied by the company.
As part of the Mining Licence approval process, the Government of Botswana has a right to acquire up to a 15% fully contributing interest in all mining projects locally. Quizzed on whether government through Mineral Development Corporation Botswana (MDCB) would be taking up stake in the project Minister Moagi said, “No consideration is being made on that regard”.
“Government is not considering taking up a stake in the Ghantsi Copper Mine project, every opportunity is assessed on all risks, but Government makes money all the while from leases, taxes and royalties, remember if you take stake you are liable for liabilities of the project as well,” Moagi said.
Last month Sandfire announced that it has awarded over P5 billion worth mining contract to African Mining Services (AMS), a subsidiary of Perenti, to deliver the open cast operation.
The contract, which has an estimated value of US$496 million (over 5 billion), is the largest single operational contract for the new Motheo Project covering a period of 7 years and 3 months, with provision for a one-year extension.
The contract according to Sandfire Resources was awarded following a competitive 3-stage tender process which saw a number of key factors taken into consideration when selecting the preferred contractor.
These included Citizen Economic Empowerment, safety culture, equipment suitability and availability, commercial terms and identified improvement opportunities. Under the terms of the contract, AMS has agreed to form a 70:30 Joint Venture with a suitable local Botswana partner or partners.
The JV is expected to be finalized ahead of commencement of mining in early 2022. African Mining Services has been operating in Africa for over 30 years. AMS’ parent company, ASX listed diversified mining services group Perenti, already has a presence in Botswana through Barminco, their underground mining division, at the large-scale Khoemacau Copper Mine located 200km north-east of Motheo.
Last month Sandfire executives said the award of the open pit mining contract represents another key milestone in advancing the Motheo Project towards production, with all components of the contract in line with the key parameters outlined in the December 2020 Definitive Feasibility Study (DFS).
The company said full-scale construction of the US$279 million (over P 3 billion ) mine development is expected to commence immediately upon receipt of the Mining Licence, with mining scheduled to commence in early 2022 ahead of first production in early 2023. This week Sandfire Resources advertised over 10 positions in calling on applications from geologists, mining engineers and geotechnical engineers.
The Motheo mine has an initial mine life of 12.5 years based on production from the T3 pit. The initial development is expected to generate approximately 1,000 jobs during the construction phase and 600 direct full-time jobs during operations, with at least 95% of the total mine workforce expected to be made of up of Botswana citizens.
Later in the week Sandfire Resources announced in the company website that it has received the licence. Sandfire’s Managing Director and CEO, Mr Karl Simich, said the award of the Mining Licence represented a major milestone that would see a significant increase in construction and development activities on site.
“We are absolutely delighted to now be in a position to move to full-scale construction at Motheo, with our construction crews expected to mobilise to site over the next few days. I would like to thank the Government of Botswana for their support throughout the approvals process, which will see Motheo come on-stream in 2023 as one of very few new copper mines commencing production globally.”
Simich said the project is expected to generate approximately 1,000 jobs during construction and 600 full-time jobs during operations, and represents the foundation for Sandfire’s long-term growth plans in Botswana.
“Our vision is that Motheo will form the centre of a new, long-life copper production hub in in the central portion of the world-class Kalahari Copper Belt, where we hold an extensive ground-holding spanning Botswana and Namibia,” he said.