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FRANCISTOWN INVESTMENT FORUM 2014 – MINING SUPPLIES AND LOGISTICS HUB

FRANCISTOWN INVESTMENT FORUM 2014 – MINING SUPPLIES AND LOGISTICS HUB. Charles Siwawa CEO – BCM 20 th AUGUST 2014. AGENDA. Introduction Supplies Hub Logistics Hub Conclusion. INTRODUCTION. Botswana is endowed with significant mineral resources

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FRANCISTOWN INVESTMENT FORUM 2014 – MINING SUPPLIES AND LOGISTICS HUB

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  1. FRANCISTOWN INVESTMENT FORUM 2014 – MINING SUPPLIES AND LOGISTICS HUB Charles Siwawa CEO – BCM 20th AUGUST 2014

  2. AGENDA • Introduction • Supplies Hub • Logistics Hub • Conclusion

  3. 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

  4. Tsodilo Resources KSE Jwaneng Kihabe Khoemacau BCL Tsabong Orapa Ghaghoo BK11 Karowe BK16 Jindal Damtshaa Tlou Energy De Beers Tati Nickel Walkabout Resources Dikoloti Nata Energy Letlhakane MCM Shumba Minergy Anglo Coal Matsitama ACAP Boseto Asenjo Mowana African Energy Botash Mupane Rainbow Gas and Coal Hodges Resources Lerala Soda Ash & Salt CBM Coal Gold D Cu/Ni Zn/Pb Iron Ore 4 Diamonds Uranium

  5. Tsodilo Resources KSE Jwaneng Kihabe Khoemacau BCL Tsabong Orapa Ghaghoo BK11 Karowe BK16 Jindal Damtshaa Tlou Energy De Beers Tati Nickel Walkabout Resources Dikoloti Nata Energy Letlhakane MCM Shumba Minergy Anglo Coal Matsitama ACAP Boseto Asenjo Mowana African Energy Botash Mupane Rainbow Gas and Coal Hodges Resources Lerala Soda Ash & Salt CBM Coal Gold D Cu/Ni Zn/Pb Iron Ore 5 Diamonds Uranium

  6. 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

  7. 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

  8. THE HUB ELECTRICAL / ELECTRONIC SUPPLIER MINE 1 HUB MECHANICAL SUPPLIER MINE 2 SERVICES SUPPLIER MINE 3

  9. 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 country

  10. 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

  11. 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

  12. THANK YOU FOR YOUR TIME Contact: Charles Siwawa Chief Executive Officer Botswana Chamber of Mines Tel: +267 3914686 Cell: +267 71315408 Fax: +267 3914684 eMail: bcm@info.bw Website: www.bcm.org.bw

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