Botswana’s mining sector ticks the right boxes on the checklist of Africa’s most favourable investment destination, but increasing number of mines that are closing might mean that something is just not right. A top economist from Econsult, Dr. Keith Jeffries, made this point during the Botswana Resource Sector Conference in Gaborone, Botswana yesterday.
Jeffries said mines were being driven out of business due to increasing production costs, a situation which has been aggravated by depression in the sector.
The most practical way to navigate out of the situation and stay in business was to focus on lowering their cost production, said Jeffries.
“If we think we can continue as a mining country without being a low cost producer, that will be a big mistake,” he cautioned.
Jeffries cited an example of nickel mine in the town of Selebi-Phikwe owned by Bamangwato Consolidated Limited (BCL) which was struggling to produce “at the correct cost-level” which needed to revise its approach to business.