Botash kick-starts P6bn expansion project
Lewanika Timothy | Tuesday October 24, 2023 06:00
As part of the recently launched strategy, the company seeks to double its salt and soda ash production capacity whilst adding a new product, sodium bicarbonate.
Botash recently launched its five-year strategy dubbed, ‘Double in Five Safely’. The company’s Process and Product Development Manager, Othusitse Seokamo said at the 2023 Global Expo that the regional market demand for salt and soda ash has grown at an exponential rate.
This rise in demand is, therefore, far outpacing the production capacity of the mine, a situation that has forced the hand of the mine to expansion. “We are unable to meet current demand for both of our products in the regional market and under our strategy we aim to become a continental leader in the production and supply of both soda ash and salt,” he told participants at the Expo.
Currently, Botash’s production capacity for salt stands at 100, 000 tonnes against a regional demand of 200, 000 tonnes while soda ash’s annual production capacity stands at 300, 000 tonnes against a market demand of 430, 000 tonnes. Under the strategy, the company aims to increase its soda ash production capacity to 430, 000 tonnes per annum while fine salt production capacity will double to 220, 000 tonnes per annum over the same period.
Seokamo said the market for Botash is so vast and wide that the ‘Double in Five’ strategy cannot be avoided. He pointed out that most of their export is absorbed by South African industries that are into glass making, the chemical industry and even the food industry. As a result, there are abundant opportunities in value chain that can be tapped in.
Botash is already the largest producer of natural sodium products in Africa, producing soda ash and salt. CAH, a 100% subsidiary of the Bud Group, holds its equity in Botash alongside government, which equally owns 50%.
With its exit, the incumbent partner may be faced with the task of funding the new strategy. Data from Statistics Botswana’s International Merchandise Statistics revealed marked salt and soda ash as one of Botswana’s top 10 exports and as of June 2023.
When many exports registered negative growth, salt and soda ash registered tremendous growth in international markets shielding the economy from a downturn. During the period, salt and soda ash increased by 70.3% recording P47 .9 million from the June 2023 value of P68.2 million.