Francistown — Tati Nickel Mining Company took delegates from the European Union (EU) on a tour of their mines last week.

The EU delegates, including German ambassador to Botswana Ulf Hanel, were taken on a conducted tour by Tati mine chief for the first time since the signing of a two-million euro agreement for exploration at Selkirk and Phoenix mines in 2005.

British Deputy High Commissioner Najma Boukhazi Khan, the Head of Delegation of the European Commission (EC) to Botswana and Southern African Development Community (SADC) Paul Malin and Geneveieve Inacu of the French embassy were also in the touring party.

Local EC communications manager Bester Gabotlale explained that the System for stabilising export earnings for mineral products (SYSMIN) facility had lent money to the government of Botswana. He said that the government in turn lends such money to mining companies like BCL and TNMC.

"This money is given as loans with low interest rates or grants to African, Caribbean and Pacific (ACP) countries for mining companies to buy equipment like drilling equipment and cranes.

The survival of towns like Selebi-Phikwe, which are heavily dependent on the BCL smelter/mine complex, are helped by funds from the Re-employment account which invests money back into towns like these," said Gabotlale.

He stated that the Re-employment account receives money that should be paid back by mining companies into the country's economy to promote diversification in mining towns.

Selkirk received a loan of up to two million euros for exploration purposes. Selkirk mine was set up to extend the lifespan of the existing Phoenix mine.

TNMC mineral resources manager Koketso Botepe explained the process of drilling that they undertook with EU funds. He said that they had drilled 73 holes both at Selkirk and Phoenix mines.

"Work was completed in 2007," he said. Botepe further stated that they ended up drilling 35,885m instead of the anticipated 35, 400.

"At Selkirk we drilled 55 holes. We drilled 22, 514 against the 20, 400 that we had anticipated from the beginning," he added. Botepe said that if every thing goes according to plan, they could start mining at Selkirk even as early as next year.