History is about to unfold in modern Botswana as Giyani Metals – Canadian junior explorer moves closer to resuscitating old small manganese mines in Kgwakgwe, Otse and Lobatse back to life, this time to commercial and large scale mining operations.
The Kgwakgwe Hill manganese complex in Kanye produced manganese during pre-independence artisanal mining years back in the 1950s. In a market update recently, Giyani Metals said it has placed an order for first long-lead item for the construction of the Demo Plant, designed to produce high purity manganese sulphate monohydrate (HPMSM) crystals for delivery to potential battery materials customers for product qualification.
Plant design and process flowsheet are currently under final review, allowing project parameters to be finalized for completion of the feasibility study (FS). Infill drilling at southerly extension of the K. Hill Project (“K. Hill Extension”) are ongoing with 18 reverse circulation (“RC”) drill holes completed.
The company explained that with the design of the process flowsheet under final review, an order for one crystallizer unit of the Demo Plant has now been placed. The crystallizer unit is the largest and longest lead item of the Demo Plant and delivery of the unit is currently scheduled for Q4 2022.
Construction and commissioning of the Demo Plant will be undertaken in South Africa before being transported to the K. Hill Project site in Kanye, Botswana. First shipment of product samples to potential customers is anticipated for next year.
The Demo Plant development has three key objectives: to demonstrate that the HPMSM product specifications can be achieved based on the process flowsheet developed for the K. Hill Project; to provide product samples to potential buyers for their supply chain testing and product qualification process; and to de-risk the commercial plant development by using the Demo Plant for optimisation of the ongoing process engineering work and as a training facility.
By focusing on achievement of the highest possible HPMSM product specifications, Giyani says it will establish itself as a premium supplier to the growing battery market. Once commissioned, the Demo Plant will be capable of producing approximately 600kg per day of HPMSM crystals for delivery to potential customers for product testing.
The Canadian company says it now has the confidence in the metallurgical testwork completed to date and the stage of development of the process flowsheet, to allow its engineering consultants to be able to move towards completion and publication of the feasibility Study.
The confirmation of plant design will allow project parameters to be settled, including operating and capital expenditure, and the Company is optimistic that the FS can be released in Q3 2022. To date 18 RC drill holes have been completed as part of the infill drilling program at K.Hill Extension for a total of 1,690 m.
The total program is expected to be approximately 55 RC drill holes and 10 diamond drill core holes for a total of approximately 7,150 m of drilling. The objective of the program is to determine the correlation between the southern mineralized horizons and the northern resource horizons and to convert the majority of Inferred Resources in the K. Hill Extension to Indicated Resources.
These Indicated Resources could be incorporated into an optimised mine development plan for the K. Hill Project. To prepare and get ready for the construction phase of the K.Hill Project, Giyani has appointed Mr. Dirk Geerligs as VP Project Development & Construction.
Mr Geerligs is a civil engineer with over 20 years’ experience in construction and project delivery of mining and industrial projects globally. He has been a consultant to Giyani since May 2021 and will join the Company on a full-time basis effective April 4, 2022. Giyani has also appointed a full time country manager to direct its activities and expand its employee base in country.
Elisa Davis, a Botswana national and a geology graduate from University of Leicester in the United Kingdom, with mining and operational experience both nationally and internationally, will join the Company on a full-time basis effective April 19, 2022
Commenting on these developments Robin Birchall, Chief Executive Officer of Giyani Metals said the company is currently working with multiple potential buyers, who have expressed a desire to receive manganese samples from the Demo Plant as soon as available.
“Our work on the process flowsheet is nearly complete and so we can move ahead at pace with both the Demo Plant and the FS, our confidence in the metallurgical testwork to date is such that we have made a commitment to construction of the Demo Plant prior to final flowsheet review”. He said. Robin Birchall said with the plant design at finalization, Giyani will now be able to complete the last outstanding technical and economic components of the FS.
“It has been a meticulous process, demonstrating the high barriers to entry that exist to producing a high purity battery-grade chemical from manganese ore, but we are fully focused on completion and release of the study as soon as possible. In parallel, our work on the ground is aiming to grow the project through further delineation of both K.Hill Extension and our Otse prospect.”
Birchall said as Giyani moves towards breaking ground on the K.Hill Project,” we are delighted to bring Dirk and Elisa into the Giyani management team. Dirk has been a consultant for Giyani for some time, but his skills have become essential as we advance towards engineering, permitting and construction.
Elisa’s expertise will enhance the Company’s in-country capabilities as it continues to engage with state and local government, agencies and other stakeholders to permit and construct a mine at K.Hill.”
The UK based research entity, Fitch Solutions Group recent forecasts indicate that household spending in Botswana could increase, following the recent decline in inflation.
In the recent statement Bank of Botswana Monetary Policy Committee (MPC) noted that headline inflation decreased significantly from 4.6 percent in June to 1.5 percent in July 2023, breaching the lower bound of the Bankâ€™s medium-term objective range of 3 â€“ 6 percent and added that the fall in inflation was mainly due to the dissipating impact of the earlier increase in domestic fuel prices in the corresponding period in 2022. â€śFurthermore, inflation fell on account of the downward adjustment in domestic fuel prices effected on June 21, 2023. Inflation is forecast at 1.2 percent for August 2023 and the MPC projects that inflation will remain below the lower bound of the objective range temporarily and revert to within the objective range from the first quarter of 2024 into the medium term.â€ť
In the recent forecasts Fitch Solutions Group noted that easing food and transport costs are expected to support strong demand for goods and services over the second half of 2023 and 2024 and boost consumer spending. â€śOur outlook for consumer spending in Botswana over 2023 is positive, with downward food and transport price pressures supporting easing inflation over H223 and presenting tailwinds to spending. Over 2024, we believe the Bank of Botswana will begin its rate cutting cycle due to inflation returning to a downward trajectory over Q423 and Q124, driving spending over the year.â€ť
According to the entity household spending is expected to grow by 5.1 percent. â€śWe forecast real total household spending (2010 prices) will grow by 5.1% y-o-y over 2023, an acceleration from 4.8% y-o-y growth in 2022. This will take real total spending up to BWP62.4bn. We project the positive growth trajectory to continue over 2024, with consumer spending growing by 4.4% y-o y.â€ť
Researchers from the entity indicated that inflation in Botswana has begun easing due to declining food and non-alcoholic drinks, as well as transport price pressures. â€śIn June 2023 inflation slowed to 4.6% y-o-y in June 2023, down from 12.7% y-o-y in June 2022. We believe the lagged impact of central bank monetary policy will feed through to downward inflationary pressures over the remainder of H223 and into Q124, presenting tailwinds to spending. Our Country Risk team forecasts inflation to average 6.3% y-o-y over 2023, before ending the period at 4.2% y-o-y. Over 2024, inflation will average 4.1% y-o-y, returning to the central bank’s target rate of 3-6%.â€ť
The researchers stated that 2023/24 national budget shows that around BWP15.0bn (USD1.15bn) will be allocated towards strengthening human capital and skills development in the country, while BWP10.3bn (USD792.3mn) will be allocated for health. â€śThis decreases the need for consumers to pay for these services out of their wages. The effects that increasing level of investment by the government into skills development and improving the health of citizens on the disposable income outlook is threefold. Firstly, the investment decreases the need for consumers to pay for these services out of their wages, and thus boosts the level of disposable income. Secondly, citizens enter the workforce with a higher level of skills and can thus command a higher wage/salary, and thirdly, with improving levels of health and access to health services, workers are able to return to work quicker and overall this improves their wage prospects and the general productivity of the labour force. These factors will provide a boost to the longer-term employment outlook in Botswana.â€ť
Fitch Solutions Group meanwhile noted that unemployment, high interest rates and income inequality is a key risk to the consumer outlook during the second half of 2023 and 2024. â€śHigh unemployment, elevated interest rates and persistent income inequality will, however, present downside risks to demand, limiting spending growth.â€ť
The research entity noted that the level of unemployment in Botswana remains high, at 23.8% of the labour force in 2023 and added that this is slightly below the 24.1% average in 2022. â€śHowever, despite decreasing from a peak of 24.9% and 24.7% in 2020 and 2021 respectively, unemployment has not returned to the pre-pandemic level of 22.6% in 2019. Weak investments in agriculture and manufacturing will keep employment limited with low economic diversification and high-income inequality exacerbating the risk of social stability.â€ť
Minergy Limited, the Botswana Stock Exchange listed mining company operating Masama Coal Mine in Medie near Lentsweletau, has decided to part ways with mining contractor Jarcon, the company announced on Tuesday.
In a circular to the market Minergy revealed that it has issued a notice to terminate its mining contract with Jarcon Opencast Mining Botswana (Pty) Ltd. In the notice, Minergy Coal will terminate the mining contract in 30 days.
The company, financial backed by state owned Mineral Development Corporation (MDC) and Botswana Development Corporation (BDC), said termination of the mining contract is “in line with the strategic intent of the Board of Directors and the financiers of Minergy, to stabilise operations and bring the business to sustainable profitability”.
During this transition period, arrangements have been made to ensure business continuity and minimal disruption in coal supply to clients, by inter alia using stock holdings available.
The market was further informed that the process of appointing a new mining contractor is at an advanced stage and a final decision will be communicated in due course.
Minergy operates a privately developed coal mine in Medie near Lentsweletau, the company has been facing financial challenges recently leading to operational slow down early this year due to unsettled debt to mining contactor. MDCB later came to the rescue, bailing out the company to ensure business continuity.
According to letters to employees dated 25 August 2023, seen by this publication, Jarcon, Masama’ s mining contractor has warned its employees of possible job cuts as Minergy financial challenges persists, citing reduction in demand for coal and fall in prices for the product.
Minergy said du Plessis tendered his resignation to pursue other interests. Mr. du Plessis will however remain available and dedicated to Minergy during his notice period ending 30 November 2023.
Bagopi is tasked with ensuring augmented management capacity at the mine and ensure business continuity.
An alumnus of Camborne School of Mines, Mr. Bagopi is described as a seasoned mining professional with over 30 years of experience in the industry in various mining commodities, starting his career at graduate level and ascending to executive management.
Mr Bagopi has been instrumental and at the leading edge of developing coal markets for Botswana coal at Morupule Coal Mine in the region as well as internationally.
He brings forth a well-established network of strategic partnerships and collaborations in the industry, ranging from operations, technical, commercialÂ and business development, projects development, having paved the path for the development of MCM corporate strategy, before joining the MDCB as Chief Technical Officer, overseeing technical aspects of MDCBâ€™s mining investment.
Masama has capacity to produce 1.5 million tonnes of coal per year and is the smaller of two coal mines currently in operation in Botswana, the other being the state-owned Morupule Coal Mine, with 4.2 million tonne capacity.
Minergyâ€™s latest annual report shows that as of June 2022, the company owed the mining contractor 79 million pula after a debt restructuring exercise. It also owed BDC 125 million pula and MDCB some 295 million pula.
Strong demand, mostly from Europe due to the fallout from Russia’s invasion of Ukraine, drove Minergyâ€™s exports up 53% in the half-year to Dec.31, boosting its earnings and helping it to reduce debt.
However, weakening coal prices and logistical challenges it faces when hauling coal from landlocked Botswana to export markets have impacted Minergy’s earnings.
Â Dr. Malebogo Kebabonye, Bomaid Chief Clinical Services Officer
The healthcare system is a crucial and yet fragile one, in any scenario we look at it within. The reality we face is an overburdened healthcare system, taking an even greater toll since the COVID-19 pandemic. The pressure gaps and issues we face are now clearer than ever before to see, and the time to act is now. At the same time, as we look at this healthcare crisis, we recognise it is not for Botswana alone to experience, not to solve â€“ this is a global phenomenon we are seeing in many markets. But how are we solving for it? And is the onus on healthcare providers alone?
The concept of value-based healthcare is fast becoming a go-to, and with good reason. However, it is not new. Indeed, it has been around for some time and has been a primary focus for work delivered by, for example, the World Economic Forum (WEF) and even the World Health Organisation (WHO). Value-based care ties the amount health care providers earn for their services to the results they deliver for their patients and aims at promoting quality of care over the quantity of services. There is less focus on frequency of healthcare interventions or doctor visits, and rather, priority is placed on the quality of care and the progress experienced for the customer or patient. Ultimately, this approach improves overall health and wellbeing of the population and has proven effective in such markets as Kenya, the US, the UK, and in the public sector of Botswana.
According to the World Economic Forum, â€śThe widely accepted definition of value in healthcare is the health outcomes that matter to patients relative to the resources or costs required to deliver those outcomes.Â Value-based healthcareÂ is an approach that aligns industry stakeholders (payers, providers, pharma/MedTech and policymakers) around a shared objective of improving patient health outcomes, providing autonomy and accountability to providers to pursue the best way to deliver healthcare for the money spent. The transition fromÂ volume-basedÂ toÂ value-basedÂ healthcare will inevitably lead to more healthy societies while optimising resources
As Bomaid, we have adopted the Value Based Care approach locally, it is in line with one of our key strategic pillars of improving holistic wellness which is patient centred and anchored in Primary Health Care. It helps better manage healthcare costs which are ultimately borne by customers through annual subscription increases and other out of pocket expenses, recognising that medical providers alone are not the only agents of change in this space â€“ medical aid providers are crucial to supporting the wider ecosystem growth and betterment.
Patient centered care or personalised care, on the other hand, focuses on the individual’s particular healthcare needs. The goal of patient-centered healthcare is to empower patients to become active participants in management of their care. Core to the principles of patient centred care is personalisation and individual accountability towards one’s own health. Value-based healthcare focuses on maximising patient healthcare outcomes and harnessing resources to better deliver on this while reducing inequity in health outcomes and promoting high impact interventions. This is, ultimately, what Bomaid strives to do in working towards delivering, first things first, health, happiness and holistic wellbeing.
So how do we deliver on a value-based healthcare sustainably and meaningfully?
It begins with mindset, yes. But this is swiftly followed by many tangible factors too: the right systems; the right infrastructure; the right resources; The right regulatory environment. It means putting holistic patient wellbeing and health first, as well as removing inefficiencies that would otherwise result in cost burdens on patients, as well as unimproved health outcomes â€“ always being ill, never seeing real recovery.
The WEF further notes, â€śThis high-cost burden can, in part, be the consequence of inefficiencies in the healthcare system, such as fragmented and uncoordinated care delivery, poor data governance, workforce shortages and underinvestment in preventive care. The OECD estimates that up to 20% of healthcare spending across its member countries is unnecessary or ineffective. Accordingly, spending more doesnâ€™t always lead to improved patient outcomes. So, addressing these inefficiencies would help reduce costs and make healthcare more equitable and accessible.â€ť
As we strive for healthier, happier people across the nation, how do we help leverage value-based care to ensure better healthcare outcomes are the only acceptable result, and that we help ensure quality and relevant, appropriate healthcare is equitable, accessible, and inclusive?
It is not for us to suggest our approach is by any means a silver bullet, but it is one worth exploring, because the global results speak for themselves. Now, how do we collectively mobilise in recognition of the fact that some discomfort for the industry now means progress for our patients and customers? This, after all, remains our priority.
Aligned to the Botswana Government through the Ministry of Health strategic agenda for Primary Health Care Revitalisation, the time is now to refocus the Private Health Care system towards a value based care to create sustainability and resilience in our health sector as a country.
Dr. Kebabonye ( Bomaid Chief Clinical Services Officer) is a public health specialist who joined Bomaid in 2023 as Chief Clinical Services Officer. In this role, she is mandated to develop and implement clinical strategies and policies which support the business in providing healthcare solutions, finding access to affordable leading-edge healthcare and innovations. This works to help enable healthier, happier lives through proactive and preventative products to attract younger healthier clients, whilst still providing reactive rehabilitation healthcare solutions.Â Â