Botswana copper production ceases as mining sector struggles for survival

GABORONE – Production in Botswana’s copper-nickel mining subsector is at a standstill following the voluntary liquidation of former top producer BCL in October, which was preceded by the collapse of two other producers in 2015.

In his review of the mining sector during his State of the Nation Address (SONA) delivered at parliament in Gaborone on Monday, President Lieutenant-General Seretse Khama Ian Khama said the liquidation of BCL stopped national copper production since the Mowana and Boseto mines were mothballed in 2015.

“Copper and nickel prices have remained depressed throughout 2016. The downturn put BCL and [subsidiary] Tati Nickel Mining Company under severe financial constraints, leading to our decision to place the BCL group under provisional liquidation in October 2016,” Khama said.

“Our other copper producers also continue to struggle. Boseto Mine has been acquired by Khoemacau [Copper Mining] after undergoing liquidation in 2015. The mine remains under care and maintenance and will hopefully reopen by end of 2017. Mowana Mine was put under liquidation at the end of 2015.”

Last month, Mowana Mine was acquired by a South African company which beat at least five other contenders in a bidding process administered by mine liquidator PricewaterhouseCoopers (PwC) Botswana.

However, Khama noted that the diamond mining sector had registered some improvement in investor confidence following a slight increase in global demand and pricing for rough diamonds.

“Carat sales and revenue for this year are forecast to be 65% and 27%, respectively, above the 2015 rates as a result of improved global demand. While the BK11 (kimberlite) mine continues to be under care and maintenance, Lerala Mine started production in 2016 and has already made two sales,” he said.

The country’s 2016 diamond output has also received a major boost from Karowe Mine, which made history with the recovery of the world’s second largest diamond, the 1 111 ct Lesedi La Rona.

Khama said despite the downturn, government was committed to diversifying the mining sector through the promotion of mineral beneficiation and the expansion of newer, non-traditional mining methods.