Factors enabling copper beneficiation in Botswana
| dc.contributor.author | Coetzee, R. J. | |
| dc.contributor.supervisor | Schaling, Eric | |
| dc.date.accessioned | 2024-08-16T07:59:31Z | |
| dc.date.available | 2024-08-16T07:59:31Z | |
| dc.date.issued | 2023 | |
| dc.description | A research report submitted in partial fulfillment of the requirements for the degree of Master of Management to the Faculty of Commerce, Law and Management, Wits School of Governance, University of the Witwatersrand, Johannesburg, 2023 | |
| dc.description.abstract | Botswana’s Kalahari copper belt (KCB), which extends into the North-West of Botswana, is a prospective zone that offers the opportunity for a large copper production sector to provide diversity and growth for mining in Botswana. Despite good quality orebodies with good grades, the disadvantage of long and expensive logistical routes has softened project financial returns in the past and hampered the development of new mines on the KCB. The Botswanan government identified the need to investigate the creation of in-country, downstream processing (beneficiation) facilities to improve the global competitiveness of in-country producers and provide future opportunities for job growth. While in-country beneficiation has been explored over the years by various stakeholders, the low quantity of primary copper sources and an uncertain outlook on exploration deterred further investment. The study further seeks out to improve the potential stakeholders’ understanding of the relevant enabling factors and underlying risks of in-country beneficiation through practical discounted cash flow modelling. Should Botswana want to drive in-country processing and enact a beneficiation legislation framework, it would need to explore options such as incentivising with tax structures and developing associated infrastructure to ensure electrification, water supply, rail network availability and other needs such as housing. Tax incentives from the government are recommended to stimulate foreign direct investment. Viable government incentives such as i) granting special economic zone status, or more relevant ii) to divert 1% of the mineral royalties payable by miners to the government to this new facility in exchange for a proportionate minority equity state. Four viable scenarios for in-country beneficiation were developed where the NPV7.7%,real 2022 of a new copper processing facility could range between US$ 358 – 422 million. Furthermore, the total value generated by the facility, undiscounted over life of operation, was estimated to be US$3.6 billion. 10.1% of the total project value generated would be recovered by the Botswanan government through corporate tax, dividend withholding tax, personal income tax and value added tax. The value added to the Botswanan economy would contribute an additional 2.2% to Botswana’s gross domestic product. The total value generated towards nation building was calculated to be at least three times larger than the profit generated by the facility owners. | |
| dc.description.submitter | MM2024 | |
| dc.faculty | Faculty of Commerce, Law and Management | |
| dc.identifier | https://orcid.org/0009-0004-0317-1398 | |
| dc.identifier.citation | Coetzee, R. J. . (2023). Factors enabling copper beneficiation in Botswana [Master’s dissertation, University of the Witwatersrand, Johannesburg]. WireDSpace.https://hdl.handle.net/10539/40152 | |
| dc.identifier.uri | https://hdl.handle.net/10539/40152 | |
| dc.language.iso | en | |
| dc.publisher | University of the Witwatersrand, Johannesburg | |
| dc.rights | © 2023 University of the Witwatersrand, Johannesburg. All rights reserved. The copyright in this work vests in the University of the Witwatersrand, Johannesburg. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of University of the Witwatersrand, Johannesburg. | |
| dc.rights.holder | University of the Witwatersrand, Johannesburg | |
| dc.school | WITS Business School | |
| dc.subject | Botswana | |
| dc.subject | Copper | |
| dc.subject | Kalahari Copper Belt | |
| dc.subject | Beneficiation | |
| dc.subject | Capital Budgeting | |
| dc.subject | Mineral Economics | |
| dc.subject | UCTD | |
| dc.subject.other | SDG-12: Responsible consumption and production | |
| dc.title | Factors enabling copper beneficiation in Botswana | |
| dc.type | Dissertation |