Rules of Money
Business
It is generally agreed that it takes 21 continuous days of following a similar pattern of behaviour to develop a habit. Habits can be learned and unlearned. We were all born without habits. English Philosopher John Locke is widely acclaimed for the theory of the “tabula rasa.”
In essence the theory suggests that our current habits are results of behaviours that we have learned routinely over years and years. What we are today and what we believe in was implanted in us by interaction with the society that we live in.
The important lesson is that our beliefs, spiritual being, our fears and habits have been learned yet we were born as “tabula rasa” that is a “white clean slate”. Our contact with the environment shaped and cultured us to believe, see and behave in a particular way.
This brief lesson in Psychology directly implies and verifies that what we are a total summation of our contact with environment. The habits that we have are therefore results of interaction with our surroundings. Inherently this suggests that our money habits, attitudes, perception have therefore been learnt from somewhere whether consciously or sub-consciously.
If it has been learned therefore it can be unlearned. It is only that now you will be aware of the learning process. It is not easy to unlearn but it is simple.
We can discover new patterns of behaviour to replace our old behaviour by practicing our desired behaviours over and over until they become new habits. If you want to be successful you can look at the documented habits of self- made millionaires and practice them until they become yours.
The idea is not to pursue the money only but we have to develop the ability to be able to keep the money. The bad money habits are therefore replaceable. We can be born again in terms of our money habits. We have to identify our new desired habits to replace the old habits.
Have you wondered why a person who has won 1 million pula end up with zero pennies in a short while? It is simply because they got the million pula but do not possess the money mind to be able to grow or at the least preserve it. The money will vanish as fast as it came. Money management consist of thumb of rules that cannot broken.
Right from the Richest Man in Babylon to Rich Dad Poor Dad the basic and fundamental rules of money are all the same, though expressed through individual creativity. It is these rules that we are going to share today. If you started working on these rules today you will be astonished as to how the universe re-organizes to commensurate your newly found self.
Most entrepreneurs and investors work years and years to accumulate their wealth. In the process they undergo so many money lessons that by the time they get their first million their mastery of finances is phenomenal. They have acquired over their rise to the millionaire status, million dollar habits that teaches them the essentials of money management.
They are basically products of the University of Hard Knocks and because they know the pain of losing everything they walk the balancing act of being open minded while also being protective of what they have accumulated.
The point is, ordinarily no one will be able to rise from managing a few hundreds of pulas to now managing millions of pula. Mark the word ordinarily some people possess natural frugality skills and can remarkably manage the transformation.
If you win a lottery, you have acquired the money but not the money mind. Your habits are the same and you will loose it faster than you can imagine hence why people who win lotteries end up poor again most of the time.
Today I share with you the 7 MoneyMind rules
Rule 1-Budgeting
You cannot operate without your budget because the budget gives you a guide as to how you spend your money. You can notice patterns of your spending and adjust accordingly. This rule cannot be broken if you do you will never experience abundance.
Rule 2-Give 10% away
The first 10% of the money must go to church or charity. It must be given away. This is the first rule of MoneyMind. I cannot explain it because it is spiritual. The more you give the more money you seem to attract.
Rule 3-Pay yourself first
Pay yourself first and the sufficient amount to go towards your savings throughout your lifetime is 15%. We always pay expenses and debts before we save. The attitude towards savings should be that we pay ourselves first. After giving 10% to charity you need to save 15%.
Rule 4 –Pay your household expenses
To discharge your best effectively you need the peace of mind of having paid all basic household needs such as shelter, food, clothes, transport etc. Without this you cannot maintain a positive mindframe.
Rule 5-Insure yourself and properties
Insure yourself, properties and everything that you have including life cover that will go towards your estate. If you do not insure yourself or properties you can lose everything. Insurance is very vital and stop listening to people who say otherwise.
Rule 6-Pay off your debts
Pay off your debts and debt is any loan or borrowed finances that do not bring any income. Work on a plan to gradually reduce your debts. Engage honestly with your creditors. Avoid credit cards and hire purchase agreements. Save towards your goals.
Rule 7-Invest
Invest in a business, stock or investments vehicle with returns that are better that inflation e.g. Metropolitan Life Botswana investment policies in the past ten years have offered an average of over 10% compounded annually.
Cut out this article and remind yourself regularly about these rules. Habits are formed if you derail don’t despair you will eventually conquer you bad money habits and don on your new money habits.
This is achievable; together towards to our new money habits.
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Business
New Khoemacau owners commit to mine’s multibillion Pula expansion
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.
Business
Khoemacau Copper Mining to be acquired by MMG Limited
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.
Business
BPC Signs PPA with Sekaname Energy
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.