Global Initiatives, a citizen owned company has reached a landmark agreement with BCL for the mining and extraction of residual metals contained in BCL’s tailings dam and slag dump in Selebi Phikwe. The deal is expected to cost about US$400 million.
This follows a two-year feasibility study and negotiation process between the two parties. The Selebi Phikwe mine has an estimated tailings resource of over 100 million tonnes and 45 million tonnes of slag. Contained in the tailings and slag resource is approximately 300 000 tonnes of nickel of which 50% can be recovered. Global Initiatives has obtained cutting edge extractive technology from China that enables the company to extract the nickel from the tailings and slag dumps.
Other metals such as copper and cobalt are also contained within the dumps, of which Global Initiatives intends to recover as part of this process.
A treatment plant is to be commissioned at BCL within the next 12 to 24 months with operations due to commence within the same period. Prior to this, further evaluation and metallurgical tests of these dumps will be conducted by an independent international consulting firm within the mining sector which will take the project up to bankable feasibility stage.
Nonetheless, initial testing suggests that value does exist within the BCL tailings and slag dump. With a total capital cost estimate of approximately $400 million, the plant will be able to treat 40 000 tonnes of combined tailings and slag per day. BCL is one of the first public entities to engage in a public private partnership in an effort to empower Batswana.
BCL general manager, Montwedi Mphathi commented, “This is a significant step for BCL, in achieving its strategic theme of partnering with other players to extract value out of its waste products.
We are pleased to have partnered with Global Initiatives, owned by Batswana in this venture. We recognize the significance of this and are keen to demonstrate that such partnerships are not only possible but can also create significant value.”
Global Initiatives chairman, Atang Makgekgenene said: “This is an important development for the Botswana economy in the sense that it will prolong the economic activity in this area for many years. Nickel will remain a significant export-earner for Botswana and will provide jobs in this area through this project. As a Motswana, I am proud that a legacy has begun that is initiated by Batswana in partnership with the Botswana government for the betterment of Botswana.”
He added that over the past five years, “our group has acquired significant mining interests in Burundi, Namibia and Rwanda. We are extremely glad to have planted our footprint in Botswana where we can bring our wealth of experience to this mineral rich country.”