Page 14 - issue 24

14 In The News

Junior

Miners

,,
Cannot be

ignored

Botswana Chamber Of Mines CEO
Charles Siwawa

frica Mining Summit Botswana “Mineral deposits discovered lately are to assist in making the processes more
was held at Travel Lodge recently generally of inferior grade and at times affordable to the mining operators.The
Ain Gaborone. Most industry high operational costs are incurred Chamber of Mines expanded by stating
and Africa’s mining Associations and retrieving the minerals. Large mining that, “Often junior companies do not
professionals attended this informative companies tend to have huge overheads have significant financial backing.The
event. Speaking to a well-attended that do not support the efficient and process to acquire such funding is lethal
gathering the Chamber of Mines CEO- sustainable exploitation of deposits of to some junior companies whereas they
Mr Charles Siwawa spoke about the role this nature. In this instance junior mining could have provided the much needed
of junior miners in Botswana. He started companies are more capable because of push in the mining space.Financial
off by acknowledging those present their ability to reduce overheads and institutions need to align themselves
and reminded the dignitaries that the focus on the technical aspect of the with mining companies in particular at
African continent is endowed with all value chain.” the foundation stages at the value chain
types of minerals inclusive of natural gas since this is the time when companies are
and oils. He said, “the African minerals Junior mining companies are challenged more vulnerable and require that type
industry is the largest in the world and with the same market conditions as the of support. There is need to invest in the
mineral exploration and exploitation large corporates such as fluctuation latest technologies to extract minerals
provide significant engine drivers to in price of commodities and increase from the ground. The fact is that if we
a lot of the economies in the African in operational costs. He advised that do not move from the traditional way
continent.” the junior companies remain at the of extracting minerals then we won’t be
bottom of the cost curve which may able to maintain sustainability besides
Mr Siwawa elaborated on this by stating offer some protection against market the debate that the current methods in
that most of these minerals have been forces. Other challenges aside from extraction has created employment and
discovered in the past century. Some of the market include moving equipment benefitted communities.”
these discoveries were often large and and minerals to and from sites for
provided significant Asset capitalisation junior miners. Poor railway and road He concluded by stating that,“Junior
based on high grades of the minerals, networks, grid power and water mining companies have a case. While
low operating costs etc. These type of availability as well as communication jobs created in numbers are limited it is
deposits often attracted large mining are other formidable challenges. A still employment. These companies also
companies whose balance sheets would possible solution to these challenges is add revenue to the fiscal and cannot be
support these operations with resources a joint partnership between the State ignored. Therefore, I move that there
of internal funding or minimal external and the Private sector. The CEO said if it is sufficient space within the mining
borrowing. He cited that nowadays is realised that the growth of economies industry for junior miners.”
deposits of high grade are far and fewer within the continent arise from the
between discoveries. Mr Siwawa said mining industry, it can only be prudent

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