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Morupule Mine expands to meet increasing coal demand

Botswana’s sole coal extraction mine, Morupule Colliery Mine will in no time commence yet another expansion to meet the demands of the growing local and regional coal market. This was revealed recently in Palapye by MCM officials to the Palapye leadership about the progress of the town’s largest private sector employer.


Morupule Colliery Mine which is wholly owned by the Mineral Development Company Botswana after buying out De Beers at the beginning of 2017 went thought the first phase of expansion (Morupule Coal Mine 2) in late 2012 to supply coal to Morupule B Power Station.
The Mine Chief Executive told members of the Palapye Local Authority that their expansion undertakings are influenced by the fact that Botswana currently imports power from neighboring countries. “We are driven by the country’s need for energy or power, Botswana needs to be self sufficient in power generation,” he said.


He told administrators who visited the mine that Botswana has potential to be self sufficient in power generation and can even export power to other countries thus boosting national revenue because of the sufficient coal at the Morupule deposits. Since Government‘s decision to transform the power industry and remodel Botswana Power Corporation (BPC) and transform it to only a distributer with the industry having independent power producers, the soon to start expansion of the Morupule Mine is directly aligned to the move.


According to Operations Readiness Manager of the proposed Morupule Coal Mine 3, Siyani Makwakwago, the mine will supply Unit 5 and 6 of the independent power producers with coal for Botswana to reach sufficient power. He revealed that the project was initiated in 2014 by the then Ministry of Minerals, Energy and Water Resources in order to resuscitate the country‘s power self sufficiency ambitions after the failure of Morupule B.

 

He noted that the government, after Morupule B project, introduced the Independent Power Producers (IPP) initiatives to relieve government from power production and distribution burden. “The primary reason was for the country to have security of power supply and also driven by the fact that Morupule B had not achieved that which we wanted , the plant has not been successfully in terms of getting us to where we wanted to go” Makwakwago said.


The Human Resource Manager of Morupule Coal Mine, Tom Mongale indicated that since MCM inception, the coal production has been growing over the years citing that after Morupule A and clients like BCL mine the MCM was expanded to meet coal demand at Morupule B. He noted that even after Morupule B clientele the mine has been supplying coal to South Africa and neighboring countries. He also revealed that the company has market demand spread across Southern African Region.


In addition, Makwakwago said even after the liquidation of the BCL, MCM production continued to grow because of regional demand and the Independent Power Producers initiative. Palapye District commissioner, Ernest Phiri could not hide his delight about the Mine expansion, observing that the expansion will complement government efforts and priorities of creating employment. “No one would dispute that this expansion will add more to existing jobs in Palapye and thus our town’s economy will grow and people’s lives will improve,” he said.


Lesedi Phuthego, Chairman of Palapye Sub Council explained that the mine expansion will unearth more value-chain businesses. “The mine expansion will open business opportunities and turn Palapye more commercial, we expert property business, rentals and SMMES to blossom from this undertaking,” he said. Morupule coal is consumed mainly by Botswana Power Corporation (BPC). The mine was recently awarded a contract to supply coal to Southern Africa’s leading cement supplier PPC Slurry in South Africa, making PPC the second largest MCM customer after BPC.


In June 2012, the Morupule Colliery Limited (MCL) 1 expansion project was commissioned. The project was launched in October 2010 at a cost of BWP1.7bn ($218m). It was undertaken to supply coal to the intended  600MW Morupule B power station built next to the Morupule A plant, which however turned out to be one of the country’s largest administrative scandal . Morupule Coal Mine's capacity has increased from 1 million ton per annum (mtpa) to 3.2mtpa following MCM 2 expansion.


Works expected to be carried out under the expansion project (MCM3) include the upgrade of existing conveyors, construction of an additional coal storage facility, and reconstruction of the existing crushing and screening plants. A second conveyor stream feeding the Independent Power Producer Unit 5 and 6 will also be constructed. In addition, a 750m concrete reservoir, new office buildings, pump station, workshops, control room, fire station, sewage plant and laboratory will be constructed.


Morupule is made of the Karoo Supergroup and the Palapye Group sandstones. It contains medium to low grade sub-bituminous coal. Coal is extracted from the 8m thick Morupule seam and the No.2 seam through conventional room and pillar mining methods. These operations are carried out at a depth of 85m and accessed through a single shaft. Continuous drill and blast methods were originally used after continuous miner operation commenced in 2004.


The number of continuous miners operating at the mine went up from one to four following the initial two expansions. The extracted ore undergoes primary crushing to reduce its size to 300mm and a secondary crushing which further reduces the size to less than 32mm.
The mine is equipped with a 1mt capacity coal washing plant, which has been operational since January 2008. The plant removes coal particles that are less than 15mm.

 

It uses a Dense Media Separation (DMS) process to separate high calorific value (CV) coal from low calorific value coal. The coal is fed to the plant which includes a slow rotating drum. High CV coal floats on the top and low CV coal settles at the bottom. Coal from secondary crushing and the washing plant is blended and fed into the conveyor system to feed the power station.


Morupule Colliery is an underground coal mine located in Palapye, Botswana. It is the country's only coal operating mine and has been in production since 1973. The mine is estimated to contain 70 billion tonnes of proven and probable reserves. After the expansion which is expected to commence after consultation with stakeholders is complete Palapye economy will boom to extreme heights.


The town located along the A1 road and housing the country’ second University BUIST will further become Botswana’s commercial hub. Currently construction of 2 multi-million Pula shopping malls is undergoing. The expansion of Morupule Mine which will output an open pit Morupule Coal Mine 3 will result in more direct employment as well as indirect employment and a boost to Small Medium Enterprises, thus increasing ordinary Palapye resident purchasing power and defeat the argument that the 2 shopping malls will only be used by A1 road users.

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The Bulb World starts operations in South Africa

8th April 2021

Homegrown LED light manufacturing company, The Bulb World, has kick started operations in South Africa, setting in motion the company’s ambitious continental expansion plans.

The Bulb World, 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, announced last year that it will enter the South African market in the Special Economic Zone (SEZ) of North West province under the auspices of North West Development Corporation (NWDC).

The company has already secured a deal with South Africa authorities which entails production factory shells and tax incentives arrangements.

The company founder and Chief Executive Officer, Ketshephaone Jacob has also previously stated that the company is looking for just under P50 million to finance its expansion strategy and is reaching out to institutional investors such as Botswana Public Officers Pensioners Fund (BPOPF) and government investment arm, Botswana Development Corporation (BDC).

However, Jacob told WeekendPost that instead of sitting and waiting for expansion funding the company has started hitting the ground running.

“We have decided to get in the streets of SA, start selling lights from door to door, ” said Jacob who is in currently in Rusternburg to oversee the introduction of The Bulb World products in the market.

Jacob explained more brand activations will be undertaken in South Africa. “The plan is to do it the whole of North West and Limpopo province, through hawkers, we give the hawkers the lights to sell at a factory price and they put a mark up and make a living,” he said.

The Bulb World operates from Selibe Phikwe, it currently employees 65 young people, 80 % of which are Phikwe youth. The company plans to add 100 jobs this year alone as it forges ahead with its regional and continental expansion plans.

In July this year Bulb World products will hit South African Shelves:  Pick n Pay, Checkers and Africa’s largest retailer Shoprite.

The Bulb World has been registered as a company in South Africa; the company will start producing lights from Mogwasa after striking a special economic zones deal with North West Development Corporation in North West Province South Africa.

“Over the next 10 years we are looking to create over 5,000 jobs in Africa. Through our expansion into all of Africa we will be able to create employment for various individuals in different sectors namely; manufacturing, distribution electronics and retail,” Jacob told this publication earlier this year.

Jacob said if all goes well, the plan is to have taken over Africa or rather penetrated, and have prevalent presence in the African market.

“We are gunning to have at least 30 percent market share by then. According to a 2016 Market Survey, the total valuation of sales for LED Lighting was 57BN, a portion of which we plan to have taken over by then,” he said.

 

While the company has set its eyes on Africa, Jacob said, the company has not fully exploited its local growth, indicating that there could be strategic factories built to supply neighbouring countries of Angola and Zimbabwe.

“There is potential for further local expansion as well to other areas of Botswana if things run smoothly as anticipated. Hopefully in the long-term if our fellow Africans and all these markets receive us well we are planning to build another factory,” he said.

“We are looking to build another factory in the Chobe/Ngamiland Area that will give priority to markets in Zimbabwe and Angola,” he said

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Business

‘Oil exploration will have minimal impact’

30th March 2021
Okavango-River-Basin

The Maun based Okavango Research Institute (ORI) has downplayed the impacts of oil and gas exploration in part of Okavango delta arguing that given the distance proposed the likelihoods of negative impacts drilling these exploration wells on the surface water systems is likely to be negligible.

The Institution released a position paper titled ‘Proposed Petroleum (Oil and Gas) Exploration Operations in the Petroleum Exploration License (PEL) No. 73,’ with findings stating that, in the event of discovery of economically viable hydrocarbon deposits, much more careful consideration of the impacts and economic benefits of development of the resource will be needed.

For example, the fracking process for gas and oil extraction is known to require large volumes of underground water.

It further argues that increased extraction of the underground water is likely to affect the water table level and further affect the overall water availability in the river-basin.

“The effect on water availability and use may become worse if surface water is reticulated or sourced by any means from the Kavango River. Should the exploration and fracking for oil and gas expand to Block 1720, 1721 and 1821, the impact on water availability and quality will be significant, especially if the wastewater is not well managed,” said the paper.

The research unit recommends close communication between the relevant Basin State Ministries (Mineral Resources, Environment) and the Permanent Commission on the Okavango River Basin, OKACOM, and other stakeholders must be facilitated.

This will facilitate sharing of the correct information on the desired intentions of the basin states and compromises sought for the sustainability of the ecosystems in the downstream of the Cubango-Okavango river Basin, states the position paper.

ORI as a key stakeholder with scientific information says it is positioned to provide scientific advice and guidance to decision-makers on the potential impacts of both exploration and development and operation activities.

It also recommends that while the impacts might be minimal at the exploration stage, environmental impacts during the development and extraction process are significant.

Findings also state that the SADC Protocol places a mandatory duty to make a notification of planned measures undertaken in any riparian state in cases where such measures hold the potential to cause ‘significant adverse effects.’

It further states that where the planned development is trivial and not expected to cause any significant harm, the development state is not under duty to notify other riparian states.

Given that the drilling in the Kavango Region in Nambia is merely for exploratory purpose and the possibility of harm is minor, it is therefore not surprising that the Namibian government did not inform Botswana.

However, should it be found that the oil can be profitably or economically exploited, the Namibian government would be under a duty to notify both Angola and Botswana.

The institution further states that to ensure sustainable development in the Okavango Delta the following in the context of exploration for and potential development of hydrocarbon deposits within the Cubango-Okavango River Basin, it must be considered that the Okavango Delta is a World Heritage Site listed in 2014 by UNESCO and one of the binding requirements of the listing is the non-permissible commercial mining of any mineral, gas or oil within the World Heritage Site.

It states that the Okavango Delta is also a RAMSAR site in which mining is not allowed.

Should the exploration for minerals, oil and gas be allowed, there is a high chance that a mineral, oil or gas may be found given that the Delta is sitting on karoo sediments and shale rocks which in other parts of the world have been found to be sources of oil and gas deposits. Should oil or gas be discovered, there will be a strong socio-economic pressure to mine oil or gas and create jobs for the masses.

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Business

Pakmaya yeast penetrates local market

30th March 2021
Pakmaya Africa Sales Manager: Cem Perdar

Manufactured in Turkey, Pakmaya Instant Dry Yeast can be used in the production of various fermented products, as it is suited for both traditional and industrial baking processes. All kinds of breads, buns and fermented pastry products are typical examples of applications.

Pakmaya Africa Sales Manager Cem Perdar says Pakmaya has 4 plants in across the world, further indicating that all of the plants have the highest standards of quality certificates and approvals. Regarding raw material, molasses is the main ingredient for yeast. Concerning production activities, yeast manufacturing requires high know-how and capability. Pakmaya has all those capabilities and aspects more than 45 years.

According to Perdar, Pakmaya has been existent in African markets since 30 years. From South to North, Central to East and West, a consumer can find Pakmaya in nearly every part of Africa continent.

“With its high quality, rich product selection and good service, our brand has become the favorite yeast of many Africans. On the other hand, our distributors in African countries are working very hardly and loyally in order to promote our products in their markets. After some time, we are becoming like families with our exclusive distributors in Africa and this enables both parts to work harder and keeps our product sustainable in market,” he said in an interview this week.

The yeast manufacturing giant made its way to Botswana market. The company has been smoothly working with Kamoso Distribution, a local distribution company. Perdar told BusinessPost that two entities have been working hard to earn is market locally.

“At the moment we have a good market share with them in Botswana market. I’m sure during 2021 long, we will be increasing our sales and market position. Soon we are going to start a marketing campaign in Botswana, so that means Batswana will see and recognize Pakmaya more and more. Pakmaya wants to be the best friend of bakers in bakeries and ladies at homes in Botswana.”

As per global COVID-19 regulations to curb the spread of the COVID-19, Botswana just like other country closed borders. Providentially, the restrictions did not affect the company destructively.

Perdar says “Kamoso Africa is a very important and strong partner in Botswana territory. With Kamoso’s hard work and strict measurements, we have done a very good job. So as Pakmaya, we have not suffered any distribution problem. Our partner is doing the needful at the reaching our products to end users.”

He further said “We are doing well in Botswana market and hoping to make much more. Our aim is to enter every single corner in Botswana territory. With our new marketing campaigns, we are planning to be the most preferred yeast in Botswana market.”

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