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Botswana diamonds exploration bears fruits

Botswana Diamonds PLC (BOD) has announced on Thursday that it has made progress on its exploration campaign which was first announced at the beginning of March. The ongoing diamond exploration campaign in Botswana is part of the 50/50 joint venture between Botswana Diamonds and Alrosa, the world's leading diamond producer.

In early March, BOD detailed its forthcoming first half 2016 exploration programme for Botswana which was to begin the same month. It was also announced that Russia based Alrosa will manage the whole expedition. The exploration programme entailed drilling of one core hole to 300m depth and one or two large diameter holes, each 300 metres deep on kimberlite pipe AK21 on PL 260 in the Orapa are as well as drilling two or three follow-up holes, 80 metres each on PL 210 in the Orapa area.

The exploration will then move to hard rock and heavy concentrate sampling on PLs 260 and 210 in Orapa and on the company’s four licences in the Gope area. Finally, the exploration team was to engage in ground magnetic surveys and electromagnetic (TEM) surveys on PLs 260 and 085 in Orapa; and PLs 135, 136 and 137 in Gope. The budget for the exploration was put at $700,000 of which half will be paid by BOD.

At the time of the announcement, John Teeling, chairman, commented "This is a very focused programme.  The wide diameter holes to be drilled on a known kimberlite on our new licence in Orapa, PL 260, are to test whether diamond grades improve at depth. The Gope area is emerging as an attractive diamond province with the Gem owned Ghaghoo mine and the Petra owned KX36 discovery.  We have already explored three small licences in the area and found anomalies.  The proposed work will identify drill targets."

In the recently released update, the Orapa exploration appears to be on track with sampling done in both sites where they hold prospecting licenses PL 260 and PL 210. At the PL 210, BOD announced that heavy concentrate sampling has taken place and the washing of the heavy concentrate samples has been completed and drilling to begin in May.

While the PL 260 area, they have engaged on diamond drilling on kimberlite pipe AK-21 of two boreholes to a total depth of 423 m. BOD says they are studying the core of the boreholes. Still on the same area, they undertook heavy concentrate sampling on detailed sites selected by the results of the airborne magnetic survey. This was followed by hard rock samples treatment and washing together with mineralogical analyses of the heavy concentrate and hard rock samples in the field laboratory. Now with the diamond drilling and heavy concentrate sampling having been completed, the company says reverse circulation drilling and sampling will continue into May.

At the Gope site, where the company holds four prospecting licenses, work is still underway. The ongoing work includes ground geophysical works and Transient Electro Magnetic soundings (TEM) on anomalies, heavy concentrate sampling on geophysical anomalies and washing of heavy concentrate samples together with mineralogical analyses of heavy concentrate samples in the field laboratory.

“The Alrosa-led team is applying state-of-the-art technology in an innovative way.  Mineralogical analyses of heavy concentrate samples in the field laboratory allows us to accelerate results so that our experts can focus the drill programme,” read part of the update.

In March when the company detailed its exploration programme for the first half of the year, its share price rose by 3 percent in the London Stock Exchange (LSE) where its primarily listed. The stock price was to later surge by 92% on the 6th of April to trade at £1.8 from £0.93 after the company announced that the drilling programme has started.

The latest announcement on the progress of the exploration programme was also met by a good rally at the LSE as the share price shot up by 18% during the day but by the end of the trading day, the stock only managed an appreciation of 11% from the opening price of £1.48 to close at £1.65.  In the Botswana Stock Exchange, where the company is listed under the foreign counter, the share price continued the trend as the news propelled the share price to jump by 35% from 14 thebe to 19 thebe, after 450 shares of the company were traded.

Botswana Diamonds plc is a diamond exploration and project development company. The Company holds exploration licenses in Botswana. The Company holds interests in approximately 30 licenses, of which over 10 are in a joint venture with Alrosa Overseas SA (Alrosa) and approximately three licenses are owned by the Company. It has over 10 licenses located in the Orapa Region and approximately 10 in the Central Kalahari (Gope) Region, near the Ghaghoo Diamond Mine. The Company also has rights over approximately 10 licenses in the Gope area of the Kalahari Desert.

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Dark days as Aviation industry collapses

22nd November 2020
Air Botswana

As the Aviation industry takes a COVID-19 pummeling, for Africa the numbers are staggering, Chief Executive Officer of the International Air Transport Association (IATA), Alexandre de Juniac has observed.

Speaking recently at the African Airlines Association (AFRAA) has been hosting an Annual General Assembly, de Juniac said traffic is down 89% and revenue loses are expected to reach $6 billion. And this figure is likely to be revised downwards in the next forecast to be released later this month. “But the impact is much broader. The consequences of the breakdown in connectivity are severe,” he surmised.

According to de Juniac, five million African livelihoods are at risk while aviation-supported GDP could fall by as much as $37 billion. That’s a 58% fall.

“We have a health crisis. And it is evolving into a jobs and economic disaster. Fixing it is beyond the scope of what the industry can do by itself.”

He said they need governments to act, “And act fast to prevent a calamity.”

“We are in the middle of the biggest crisis our industry has ever faced. As leaders of Africa’s aviation industry, you know that firsthand. Airline revenues have collapsed. Fleets are grounded. And you are taking extreme actions just to survive. We all support efforts to contain the COVID-19 pandemic.  It is our duty and we will prevail. But policymakers must know that this has come at a great cost to jobs, individual freedoms and entire economies,” he said.

de Juniac used the AFRA general assembly platform to amplify IATA’s call for governments to address two top priorities: “The first is unblocking committed financial relief. Airlines will go bust without it. Already four African carriers have ceased operations and two are in administration. Without financial relief, many others will follow.”

Over US$31 billion in financial support has been pledged by African governments, international finance bodies and other institutions, including the African Development Bank, the African Union and the International Monetary Fund.

Unfortunately de Juniac pointed out, in his words, “Pledges do not pay the bills. And little of this funding has materialized. And let me emphasize that, while we are calling for relief for aviation, this is an investment in the future of the continent. It will need financially viable airlines to support the economic recovery from COVID-19.”

The second priority, according to IATA is to safely re-open borders using testing and without quarantines.

“People have not lost their desire to travel. Border closures and travel restrictions make it effectively impossible. Forty-four countries in Africa have opened their borders to regional and international air travel. In 20 of these countries, passengers are still subject to a mandatory 14-day quarantine. Who would travel under such conditions?” de Juniac quizzed rhetorically.

He suggested that countries should adopt systematic testing before departure provides a safe alternative to quarantine and a solution to stop the economic and social devastation being caused by COVID-19.

He admitted that it’s a frightening time for everyone, not least the millions of people whose livelihoods depend on a functioning airline industry. Right now, de Juniac said there essentially is no airline industry. He cited the example that China’s largest airlines sound optimistic, but in a vague way. “They gave no hard data about current yields, loads, or forward bookings, discussing only developments in 2019. Boy, does that seem like ages ago.”

Aviation’s darkest days

The IATA CEO said these are the darkest days in aviation’s history. “But as leaders of this great industry I know that you will share with me continued confidence in the future.

Our customers want to fly. They desire the exploration that aviation enables. They need to do international business that aviation facilitates. And they long to reunite with family and loved ones.”

He said the industry will, no doubt, be changed by this crisis, but flying will return. “Airlines will be back in the skies. The resilience of our industry has been proven many times. We will rise again,” he said.

de Juniac said Aviation is a business of freedom. “For Africa that is the freedom to develop and thrive. And that is not something people on this continent will forget or lose their desire for.”

 

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Inflation increased to 2.2% in October 2020

22nd November 2020

Headline inflation increased from 1.8 percent in September to 2.2 percent in October 2020, but remained below the lower bound of the Bank’s medium-term objective range of 3 – 6 percent, and lower than the 2.4 percent in October 2019.

According to Statistics Botswana, the increase in inflation between September and October 2020 mainly reflects the upward adjustment in domestic fuel prices {Transport (from -3.9 to -2.5 percent)}, which is estimated to have increased inflation by approximately 0.29 percentage points.

“There was also a rise in the annual price increase for most categories of goods and services: Alcoholic Beverages and Tobacco (from 6.2 to 6.6 percent); Clothing and Footwear (from 2.5 to 2.7 percent); Communications (from 0.6 to 0.9 percent); Housing, Water, Electricity, Gas and Other Fuels (from 6.4 to 6.6 percent); Recreation and Culture (from 0 to 0.2 percent); Miscellaneous Goods and Services (from 0.7 to 0.9 percent); Food & Non-Alcoholic Beverages (from 4.2 to 4.3 percent); and Furnishing, Household Equipment and Routine Maintenance (from 2 to 2.1 percent). Inflation remained stable for: Education (4.7 percent); Restaurants and Hotels (3 percent); and Health (1.5 percent). Similarly, the 16 percent trimmed mean inflation and inflation excluding administered prices rose from 1.8 percent and 3.1 percent to 2.2 percent and 3.4 percent, respectively, in the same period.”

[Source: Bank of Botswana]

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BDC injects further P64 million into Kromberg & Schubert

22nd November 2020
BDC

Botswana Development Corporation (BDC) has to date pumped a total of P100 million into the expansion of Kromberg and Schubert, a car harnessing manufacturing company, operating from Gaborone Old Naledi.

At the official ground breaking ceremony of the company‘s new warehouse today, BDC Managing Director, Cross Kgosidiile revealed the wholly state owned investment corporation has pumped P64 million into the expansion which entailed building of the new warehouse.

Kgosidiile explained that this follows another expansion project which was successfully launched in 2017, in which BDC invested P36 million, bringing the total investment into Kromberg at P100 million. The MD also acknowledged Botswana Investment and Trade Centre (BITC) as a partner in the project and for having facilitated the acquisition of the land.

 

Giving a keynote address, Minister of Investment, Trade & Industry, Peggy Serame highlighted the importance of infrastructural development in growing the local manufacturing sector and transforming the economy of Botswana.

Serame underscored the value of strategic partnerships between Government and the private sector, noting that when the two work together and pull together in one direction results will be evident and jobs will be created.

“With the prevailing conditions of depressed economy occasioned by COVID-19 pandemic, government is reliant on entities like BDC to bring in revenue and acceleration of private sector development in line with its mandate and strategic plan. This plan is supported by the need to invest in growth sectors and accelerate the implementation of the Economic Diversification Drive,” Serame said.

Minister Serame noted that the partnership between BDC and Kromberg & Schubert begun in 2017 when the P36 million, 4100 square metres factory expansion for the company was launched.

 

She said the launch of the 7320 square meters factory expansion, to be built at the tune of P64 million signals the continuation of the good partnership between the two companies.

 

“I must commend BDC for their continuous efforts to build partnerships with the private sector geared towards contributing to economic development of this country.”

 

Minister Serame also added that BITC through its robust investor aftercare programme continues to provide value added and red carpet to Kromberg and Schubert under their One Stop Service Centre.

 

“In this regard BITC facilitated acquisition of land to enable this expansion. I therefore would like to commend BITC for their timely facilitation to make this expansion possible,” the minister said.

 

Kromberg & Schubert was incorporated in Botswana in 2009; The Company has grown to asset its position as a significant player in the regional automotive industry value chain.

 

The company is also a critical player in the economic development of Botswana, it currently employs 2100 Batswana across its operations. Kromberg exports on average P2.0 billion worth of goods annually, contributing significantly to foreign exchange.

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