FRANCISTOWN INVESTMENT FORUM 2014 – MINING SUPPLIES AND LOGISTICS HUB

Charles Siwawa CEO – BCM 20th AUGUST 2014

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AGENDA

Introduction Supplies Hub

Logistics Hub

Conclusion

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INTRODUCTION

Botswana is endowed with significant mineral resources

The value of these resources is estimated at trillions of dollars in the ground

There remains scope to add value through efficient supply of goods and services to the industry

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4

Ghaghoo

Ghaghoo

DD

Diamonds

Walkabout

Resources

Karowe

Karowe

BK11

BK11

Tsabong

Tsabong

Coal

BK16

BK16

KSE

KSE

CBM

CBM

Tlou Energ

y

Tlou Energ

y

Uranium

Nata Energ

y

Nata Energ

y

Anglo Coal

Anglo Coal

Asenjo

Rainbow Gas and

Coal

Rainbow Gas and

Coal

Damtshaa

Damtshaa

Letlhakane

Letlhakane

Orapa

Orapa

Jwaneng

Jwaneng

MCM

BotashBotash

Soda Ash & Salt

Soda Ash & Salt

Lerala

Lerala

De Beers

De Beers

Shumba

African

Energy

Hodges Resourc

es

Jindal

Minergy

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5

Ghaghoo

Ghaghoo

DD

Diamonds

Walkabout

Resources

Karowe

Karowe

BK11

BK11

Tsabong

Tsabong

Coal

BK16

BK16

KSE

KSE

CBM

CBM

Tlou Energ

y

Tlou Energ

y

Uranium

Nata Energ

y

Nata Energ

y

Anglo Coal

Anglo Coal

Asenjo

Rainbow Gas and

Coal

Rainbow Gas and

Coal

Damtshaa

Damtshaa

Letlhakane

Letlhakane

Orapa

Orapa

Jwaneng

Jwaneng

MCM

BotashBotash

Soda Ash & Salt

Soda Ash & Salt

Lerala

Lerala

De Beers

De Beers

Shumba

African

Energy

Hodges Resourc

es

Jindal

Minergy

BotAsh

Orapa

Tsodilo Resources

African Energy

BCL

Galane GoldTati Nickel

African CopperDML

Hana

Ghaghoo

Mmamabula

Aviva

B/K11

Prospecting site

Producing Mine

Lerala

Jwaneng

Morupule

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SUPPLIES HUB

All mines require supplies for efficient and effective production

These have to be delivered well in time to avoid loss of production

Spare parts required are from outside the country and at times not synchronised

Recent study of 13 items consumed by 5 mines were in excess of P1.1bn worth of goods annually

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CONCEPT

Hub to consolidate and distribute consumables, capital equipment and spares

Hub to operate as a wholesaler of goods with shared logistics and IT services

All the large mining houses around the world operate along similar principles

Hence extend the same principles to all mining companies in Botswana

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THE HUB

HUB

ELECTRICAL /

ELECTRONIC

SUPPLIER

MECHANICAL

SUPPLIER

SERVICES

SUPPLIER

MINE 1

MINE 2

MINE 3

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BENEFITS

Improved efficiency leading to higher productivity

Economies of scale with downward pressure on costs

Creation of small and medium enterprises to service the industry

Employment generation

Contribution to the GDP of the country23-04-19

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LOGISTICS HUB

The mines products are of different characteristics requiring different modes of transport

The logistics feasible therefore relate more to inward than market orientated

SME opportunities exist to carry out logistics

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CONCLUSION

There are abundant mineral ore resources / reserves in Botswana

There is a wide scope for establishment of a supplies and logistics Hub to serve the mining industry. This can be done by the business community

The centre of gravity for the mining industry in Botswana is more towards the north. Francistown therefore lends itself to establishing such a Hub

Minerals will continue to play a significant role in driving the economy of Botswana in the foreseeable future

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Contact:Charles SiwawaChief Executive OfficerBotswana Chamber of MinesTel: +267 3914686Cell: +267 71315408Fax: +267 3914684eMail: bcm@info.bwWebsite: www.bcm.org.bw

THANK YOU FOR YOUR TIME

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