BMWU against Debswana’s new service company
Botswana Mine Workers Union ( BMWU) has condemned decision by the country’s mining giant, Debswana to establish a subsidiary company, Naledi Mining Services.
Speaking on the sidelines of Debswana Business Seminar 2022, this week, President of BMWU Joseph Tsimako said the Union is shocked at the decision, as it is against Citizen Economic Empowerment Programme ( CEEP).
Debswana’s CEEP aims to spend P20 billion on citizen enterprises by 2024, with a cumulative P7.8 billion having already been procured between 2019 when the programme began, and 2021.
The initiative represents the largest citizen economic empowerment spend by a private company.
“Our new mineral policy calls for Batswana to be actively involved in mining but Naledi is a partnership between government and De Beers, closing out Batswana,” said Tsimako, citing that instead of grooming and growing Batswana miners, Debswana has relegated local companies to only ancillary services.
Launching the company this week, Debswana Head of Technical Services, Bakani Motlhabani said the company has been formed, as part of efforts to cut Debswana’s high and rising fixed cost.
“We have been looking at our operations to lower cost and methods to take us forward,” said Motlhabani.
He said the decision was reached after Debswana failed to get a local services company to do the company’s Jawaneng Cut 9 project. The Jwaneng Cut 9 Project is an expansion project which will extend the life of the mine to 2035 with 80percent plant ore feed expected from 2029.
“We could not get a sustainable citizen owned services company,” said Motlhabane. Naledi Mining Services is expected to provide Debswana with services beyond Cut 9, in 2027 when underground mining kickoff at Jwaneng and also grow the country’s mining services industry.
“The intention is to look for opportunities with Debswana, in other local companies and outside our borders,” said Motlhabani.
Anticipated to hit annual turnover of 300 million in its first year, the company is scheduled to start operations next year with over 750 employees.
Motlhabane said Naledi is a fairly sizeable organisation expected to bring efficiency, lowering cost of operations, accelerating development of mining services and preservation of jobs for the local market.