LionOre upbeat about Activox project
Ditiro Motlhabane
1/23/2007 5:08:21 AM (GMT +2)
The management of LionOre has expressed confidence and optimism about the new Activox project which was launched by president Festus Mogae at the Botswana Metals Refinery (BMR) site along Francistown/ Matsiloje road on Monday.
The construction of Botswana’s first ever metals refinery and the world’s first ever Activox refinery which uses hydrometallurgical technology is expected to boost the efficiency and improve productivity at BMR’s sister company, Tati Nickel Mine.
The President and Chief Executive Officer of LionOre International, Colin Steyn, said the project is a culmination of ten years hard work by his company and its subsidiaries.
He said Botswana stands as a shining beacon to the world of how to successfully harness and harmonise the imperatives of government and business, enabling responsible development of its natural resources for the benefit of all stake holders.
“This refinery will have a broader impact on Botswana than just the mining sector or the local communities around Francistown. This investment of 4 billion pula represents a 3% contribution to the economic diversification of Botswana, 1% of the country’s GDP and a 2.5% increase in export earnings and this will benefit all the citizens of Botswana. This partnership has combined to maximise the value of our joint resources in the region,” Steyn said.
LionOre Group Chief Operating Officer, Peter Breese, said the refinery represents a significant investment for both LionOre and the people of Botswana at a cost in excess of 3 billion pula. He said the new Activox refinery will have the capacity to produce 25 000 tonnes per annum of highly refined nickel and 22 000 tonnes per annum of refined copper representing an increase of approximately 100% metal production which will further increase foreign currency revenues for the economy.
“When the refinery is commissioned in late 2009 it will employ around 500 people. This is a significant skills development project in that Botswana has never had a metals refinery prior to this project. LionOre thus sees this investment as an opportunity to significantly develop enhanced skills within Botswana which will add to the future economic prosperity of the country,” he said.
Conducting the groundbreaking ceremony at the BMR site the president of Botswana Festus Mogae hailed LionOre for the new technology and pledged that government will continue to use its best endeavours in promoting the success of world class investors like LionOre..
“LionOre International, through Tati Nickel Mining Company, having successfully established Africa’s largest nickel mine has now introduced this state of the art facility, which will soon be operating where we now stand. The amount being spent on this project, around US$620 million is a clear vote of confidence on our investor friendly mineral policy and fiscal regime.” He said government’s policy for mineral development is to create an environment to realise maximum benefit, while also allowing investors a fair and decent return on their investment.
“Through this approach over the last few years we have succeeded in attracting increased interest among international investors. Indeed the trade journal Resource Stocks of Australia has ranked us the number one destination in the world for mineral investment. This project is one example of how new mineral sector investment is having a positive effect on our economy.”
LionOre is a world powerhouse in nickel production, owning and operating mines in Australia, Botswana and South Africa. The construction of the new Activox refinery project signals a shift by LionOre from being a concentrate producer to a finished nickel producer with the capacity to produce nickel on site without depending on third party for smelting.
The Activox refinery will use LionOre’s state of the art hydrometallurgical technology which involves the purification and recovery of metals via dissolution in water.
LionOre International holds 85% shareholding in TNMC and BMR while the government of Botswana holds the remaining 15% in both companies.
