Mining companies have been urged to reduce operational costs and remain afloat during the current situation characterised by low commodity prices on the international market, an official has said.
VIVO Energy Botswana managing director, Wayne Kingwill said due to global challenges facing the mining industry, a number of companies have shut down while others were put under provisional liquidation.
Last year, BCL and Tati Nickel Mining Company (TNMC) and related entities were put under provisional liquidation by the government after facing viability challenges leaving about 5000 workers stranded.
“We have seen companies reducing production in Botswana even when they are not under care and maintenance and where we are coming in as Vivo Energy is on cost improvement. What we are trying to do is partner with companies and try helping them to take costs out in a sustainable way,” said Kingwill.
He added that many companies are under pressure from the low commodity prices on the international market hence it is important for costs improvement by eliminating all forms of wastages. Kingwill, whose company supplies fuel and lubricants, says they visit companies and analyse their production and propose solutions on how to improve their operations and reduce costs.
“Companies should use the real lubricant for the real equipment,” said Kingwill. Vivo Energy is one of Botswana’s leading marketers of gasoline, diesel, illuminating paraffin and lubricants, supplying a wide range of these products to various sectors of the economy, and fuelling the country’s efforts to achieve its significant potential.
Kingwill said the company is also investing in the communities and one of them being the conservation of the environment and empowering of indigenous citizens in Botswana. The company’s retail business in Botswana has been operating for more than 100 years under the Shell brand. It was the first marketer of petroleum products in the country.
Currently, it is the country’s market leader, has more service stations than any other energy company and leads the way in customer service.