Selebi-Phikwe — Head of delegation of the European Commission (EC) in Botswana, Paul Malin has praised BCL and Tati mines for putting funds sourced from the European Union (EU) in the last 18 years to good use.

Speaking during the EU member states' visit to Selebi-Phikwe to inspect the economic diversification of the mining sector project, Malin said they have given the two mines about 85 million sterling pounds in the last 18 years. He added that EU provided funds to government to give BCL much-needed cash-flow at subsidised rates at different times when the mine was threatened with closure that would leave thousands jobless.

"The mine life has now been extended and copper and nickel exports have grown from 10 percent to 18 percent. So the money we lent is money well spent," he emphasised. He added that in the last two years, they experienced a shift from mining and exploration to economic diversification and environmental issues. He stated that they have given support to Selebi-Phikwe Diversification Unit, assisted on economic diversification studies and funded BCL with management and technical studies to improve its operations.

Malin said that the funds repaid to government through the re-employment account is P400 million. This will rise to P650 million by 2011 and can be used for a couple of projects. Malin indicated that already, there has been an agreement to fund the Selebi-Phikwe College of Applied Arts whose construction is expected to start early next year.

There are also plans for a project to reduce the damaging environmental impact of the smelter through a sulphur capture plant as an input to fertiliser production.

"We are also looking forward to the national stakeholders conference, which should be held before the end of the year. It will offer us an opportunity to present on the studies on the SPEDU (diversification) strategy and action plan as well as discuss all events to drive the process."

BCL general manager, Montwedi Mphathi, said he is grateful for the support the mine and Selebi-Phikwe has gotten from the EU. He said without the support, the mine would have long closed down. He added that they are currently drilling and extending the resource and the mine's lifespan is expected to go beyond 2013. Mphathi said the extended lifespan gives the town enough time to drive its diversification efforts to bear fruit before the mine's closure.

He indicated that they have carried out many studies that help the mine managers to make the right decisions. He expressed the need for the mine to do something about the environment. "We used to have a sulphur capture plant, but the technology did not work and eventually posed danger. We have been looking to see what could be done."

He said the mine will continue to look at what could be done to reduce the impact of sulphur emissions on the environment. Mphathi expressed hope that the EU will assist with funding for the environmental projects. The EU has been instrumental in supporting the operations of the BCL mine since 1990s. The financing agreement for the economic diversification of the mining sector programme was signed between the EC and the Botswana in 2003. Under the agreement, Botswana received 30 million pounds.

The objective of the economic diversification programme is to assist BCL and Tati mines to purchase mining and exploration drilling equipment to continue operating and diversify the mining sector. It was also meant to give breathing space to the diversification of the economy of Selebi-Phikwe and surrounding areas.