Botash to pump billions into expansion
Lebogang Mosikare | Tuesday September 5, 2023 06:00
The strategy was launched last week in Sua Pan, under the tagline “Double in Five Safely”. During the launch, Botash managing director (MD), Kangangwani Phatshwane and other members of the company’s executive team said the strategy will see the table salt producer expanding the production of sodium bicarbonate products.
Under the strategy, the company aims to increase its soda ash production capacity to 430,000 tonnes per annum, from the current 300,000 tonnes by 2027, while fine salt production capacity will double to 220,000 tonnes per annum over the same period.
The increase in capacity will be achieved through the injection of P6.6 billion in capital expenditure over the years of the strategy, with a view to tapping into markets in the region and beyond, officials said. A new product, Sodium Bicarbonate, will also be introduced, with the establishment of a 50,000 tonne per annum capacity plant. The new product will be targeting the food, animal feed, chemical and detergent markets. Botash is already the largest producer of natural sodium products in Africa, producing soda ash and salt.
Phatshwane explained that the planned investments would generate economic value to the country and shareholders and would also unlock opportunities along the business value chain. “This will lead to the creation of more jobs and will also result in increased revenues of more than P900 million and increased dividends to the government,” he said. Touching on new product development, the MD said Botash plans to develop the production of fertiliser grade potash on the Sua Pan and a scoping study is already complete.
The project will be advanced in future when inflationary pressures in the economy subside. He also stated that Botash is investigating the expansion of the soda ash unit coupled with quality upgrade of the soda ash product. A feasibility study was completed in 2019 for this plan, but was suspended due to the market downturn occasioned by COVID-19. “The project is being re-evaluated,” Phatshwane said.
When giving a keynote address during the launch, Minerals and Energy minister, Lefoko Moagi said the impact of COVID-19 and the ongoing Russia-Ukraine conflict have heightened global economic uncertainty. “It is, therefore, imperative that governments and companies re-imagine economic growth paths and sustainability of businesses to shield themselves from future economic shocks,” he said. “This is particularly critical for the mining sector in Botswana, as mining is still the mainstay of Botswana's economy. “By coming up with a new strategy, Botash is well on its way.” Moagi also stated that the government subscribes to sustainable mining hence the formalisation of the Minerals Policy that was adopted by parliament in 2022. “The policy provides, in a compact and easily accessible manner, strategic direction on the management and development of the country’s finite mineral resources.
“Emerging issues such as beneficiation and value addition, citizen economic empowerment and local participation as well as the use of technology to produce synthetic mineral products are some of the issues the policy addresses,” he said. Government has been a long term investor in Botash, having partnered with the private sector in the 1980s out of a recognition of the project’s strategic value to Botswana and the Southern African region. Moagi revealed that Botash’s contribution to Botswana’s gross domestic product is currently approximately two percent with a value contribution to the government of over P680 million in royalties, taxes and dividends over the past five years. Meanwhile, Botash’s products feed into value chains valued at more than P50 billion across Southern Africa.