Skills shortage delays BCL�s smelter rebuild
Onalenna Kelebeile | Wednesday November 4, 2015 18:00
Speaking at a Business Botswana gala dinner held in Francistown recently, Mahupela said the company has failed to complete some of the projects on time due to significant delays in securing work permits for its skilled expatriate staff.
He said this is one the factors that led to the delays in completion of its smelter rebuild.
The refurbishment, which engaged close to 2,000 contracted workers in addition to the mine’s 4,500 employees, was supposed to have been completed by mid September but was only finished at the end of October.
Mahupela therefore called on Business Botswana to drive efforts to advise government on the need to strike a balance between the regulatory reforms and attraction of investors.
“It has been proven that some reforms can scare away investors especially those that are aimed at encouraging citizen empowerment,” he said.
Meanwhile, Mahupela said the Polaris II has begun to deliver as the company has completed the smelter rebuild despite unprecedented delays and said this fulfills the intention to expand and sustain nickel production circuit.
BCL has also finalised the acquisition of 85% of the Tati Nickel Mine Company shares and completed a study that recommends the exploitation of Selkirk ore body from 2017 onwards.
“We are currently doing a feasibility study at Maibele nickel deposit which is situated some 50 kilometres from the BCL smelter.
This ore is earmarked to replace the Phikwe ore bodies which are increasingly difficult to exploit because of depth and heat challenges,” he added.
He further said they are at an advanced stage with regard to the acquisition of a 50% stake in the Nkomati mine in South Africa. Mahupela said they are very alert to any emerging nickel tenements in the sub continent to cement a niche for Botswana in the nickel business.
He also noted that the mine’s chemicals and byproducts pillar is grounded on the need to clean the environment and stressed that BCL can no longer be allowed to emit smelter gases into the environment and continue to do business.
“We have two major studies for the production of sulphiric acid from the smelter gases, but both are not bankable because of the cost of transporting acid to the sea.
We are currently completing a study to convert the acid to various fertilisers and chemicals for the external and internal market.
This will increase the manufacturing capacity of the country and change the economic fortunes of the northern Botswana,” he noted.
Mahupela further noted that any business has to accept and adapt to change in order to survive, saying BCL has had a history of operating under difficult circumstances such as low underground ore grades, high production costs and fluctuating metal prices which this year have plummeted beyond anticipation.
He said despite this, the company refused to wilt under criticism but followed its convictions.