China smelter group agrees to lower Q1 copper charges
The charges tend to fall when ore supply declines and rise when more concentrate is available.
Botswana’s first iron ore mine, Ikongwe, has started production and delivered its maiden exports to China, a company official told Reuters on Tuesday, as the Southern African country makes headway in efforts to diversify its economy away from diamonds.
Although diamond mining’s contribution to GDP has declined over the years and was less than 20% last year, Botswana is still heavily reliant on the precious stones, with diamonds accounting for more than 70% of foreign currency revenues.
The first exports from the Ikongwe mine, owned by Vision Ridge Investments, a unit of India’s Yashomann Industries, reached China in September.
“We have an order of 50,000 tonnes per month from a state-owned steel manufacturing company there,” Vision Ridge director Chetan Patil said.
Vision Ridge aims for Ikongwe to produce one million tonnes of iron ore per year over an initial 10-year lifespan, with a grade of up to 65%.
The exports currently go via South Africa, in containerised shipments, but Vision Ridge is in talks with Botswana Railways to organise bulk shipments through Mozambique’s port of Maputo, Patil said.
“This should help us to ramp up production and exports,” he said.
Prices for iron ore, which is the main ingredient in steel production, have soared over the past year to reach record highs of $240 per tonne in May driven by strong demand from China which produces most of the world’s steel.
China has been seeking new sources of iron ore amid a trade war with its top supplier Australia.
(By Brian Benza; Editing by Helen Reid and David Evans)
4 Comments
Albert Barfo
The Botswana government has been in determination to exploit it first Iron Ore to the People Republic of China.
Rapula
I hold a BTec: Safety Management from the University of South Africa and a BDes: Design and Technology Education from the University of Botswana. Currently, I am a Principal Education Officer, Deaign and Technology, North East Region,, Ministry of Education in Botswana. I am job seeking in the Safety Management cadre. Thank you.
Edwin Keakopa
This is good. It’s high Botswana diversifies its economy and export other raw materials besides diamonds. The country is also rich in copper and gas.
Alfred Pontsho
Its a very interesting developments for this lovely nation, we hope it creates employment to this poor part of Central District region.