Digging for diversity in diamond rich Botswana

21 December 2014

In Africa, Botswana is often seen as a diamond in the rough.

It's perceived as the least corrupt country, with the longest surviving multiparty democracy on the continent, and boasts one of the world's fastest-growing economies.

But, following the global economic downturn in 2008, and increasingly volatile commodity prices, the country's reliance on diamonds has come into question.

For the first time Botswana finds itself cash strapped, in negative growth, and having to go to international donors.

The country is looking to diversify its economy by strengthening existing sectors like tourism and cattle farming, and investing in burgeoning industries spawning from technology and entrepreneurship.

Yet diamonds by far outshine any other industry in Botswana, accounting for one-third of GDP, 70% of export earnings, and about one-third of the government's revenues.

However, production has peaked, and experts believe reserves of the precious stone may run out by 2030.

Unemployment is also on the rise, with official jobless rates nearing 20%, and an estimated 45% of Botswana's population living below the poverty line.

Economic growth was also negative in 2009, and the industrial sector shrank by 30%.

Signs of labour unrest have also began showing following public sector strikes in recent years.

As Linah Mohohlo, who has been governor of the Bank of Botswana for 15 years, put it in a recent interview  read more ...........

Australian Company Suspends Copper Mining in Botswana

Gaborone, Dec 17 

The Australian company Discovery Metals Ltd today announced it will suspend copper mining in Botswana within the next six months, due to a deteriorating world price of the metal.

An internal study on economic feasibility of their investments in the field of Boseto, northwest Botswana, reflected a declining market perspective due to the value of the metal has dropped by 1,000 dollars per ton (or 15 percent) since January.

The recent investment of major corporations such as Rio Tinto and BHP Billiton to amass new portions of a global market worth 140 billion dollars has put pressure on more discreet producers such as Discovery.

Since last June, the company based in Sydney and stock prices in Shanghai had been warning of an unbudgeted increase in its costs of operation in cash after excess global supply of the product. The group's shares fell today up to 35 percent, according to the digital magazine Mining Weekly.

Botswana is the largest diamond producer in the world and a haven for luxury safari tourism. It has been one of the fastest growing economies in Africa since the 1970s.

Mongolia restarts bids for giant coal project

Dec 3 2014

Mongolia has restarted bidding for development of the giant Tavan Tolgoi coal project as it tries to boost a flagging economy hit by falling commodity prices and a decline in foreign investment.

A consortium comprising China Shenhua Energy (OTCPK:CUAEF), the world's largest coal producer by volume, Sumitomo Corp. and a subsidiary of Mongolian Mining (OTCPK:MOGLF) has submitted a bid; Peabody Energy (NYSE:BTU) and a local Mongolia mining firm also submitted separate bids.

Tavan Tolgoi holds ~7.5B metric tons of coking coal, but Mongolia's cash-strapped 

government has struggled to finance its development

Majwe Mine integral to Cut 8 project

Contract miner Majwe Mining has been hailed as a model employer and a critical player in delivery of Jwaneng Mine’s flagship Cut 8 project. This was said by Albert Milton, general manager of Jwaneng Mine, at Majwe Mining’s three years anniversary celebrations.

Majwe Mining was engaged as a joint venture partner to provide mine contracting services to Jwaneng Mine in the Cut 8 project, a key strategic imperative meant to extend the life span of the mine from 2024 to 2031. Launched in December 2010, the Cut-8 project will transform Jwaneng into one of the biggest open pit mines in the world. At P24 billion, it was the largest-ever single capital commitment in Botswana’s private sector. The investment includes all project capital, mining fleet capital, sustaining capital and all working costs for a period of over of 20 years. At completion the Cut-8 push back will have mined 658 million tons of waste and delivered 92 million tons of ore. Majwe Mining has a responsibility to move over 156 million bank cubic meters of waste material safely. The Cut 8 pit dimensions will be 2.4km long, 1.6km wide at surface and 624m deep.

Milton also lauded Majwe Mining as a model employer that increased its staff compliment from 650 when it commenced operations in 2011 to over 768 currently. The total workforce of Majwe and its main sub-contractors so far stands at over 1,200. For his part Rod Fraser, project director at Majwe Mining said the company is currently operating at unprecedented levels of mine production.

“We are very proud to bring new mining techniques, methodologies, systems and skills to Botswana. We have are committed to leaving a legacy of enhanced skills across the many aspects of mining operations and mining management to the greater benefit of Botswana,” he said.

He added that Majwe Mining has brought new work arrangements, including rosters and hours of work that align Botswana’s mining industry to international best practices.
“At Majwe Mining we are not just creating miners; we are creating contract miners. Contract miners sell a service that adds value to their clients. They carry out their work safely and efficiently; they cushion the client from business risk,” said Fraser.