From Seam to Value

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Botswana’s Morupule Coal Mine is on a mission to transform coal into an unlimited source of energy

As Botswana’s Morupule Coal Mine (MCM) commemorates 50 years of service, growth, and success, the ambitious firm is also celebrating their renowned tradition of safety, value creation, and integrity. “We live a culture woven around a robust set of values,” said MCM CEO, Edwin T. Elias. MCM’s stated brand promise, “Seam to Value,” was created to accurately reflect their ambitions to “be a partner of choice in the global coal transition.”

The promise is built on their mission to transform coal into an unlimited source of energy. With internationally respected industry standards, MCM is focused on its position as a best-in-class industry innovator and, as Elias noted, “A company committed to delivering the coal that generates energy to help maintain the standards of progress, development, and socioeconomic stability that characterize Botswana and its people.”

A state-owned entity under the Government of Botswana, with Mineral Development Company (MDCB) the 100% shareholder of the company, MCM runs underground and open cast mining operations. The mine currently targets to produce at least 4.2 million tons per annum in 2023 and through its recently launched strategy plans to deliver at least 10 metric tons per annum (mtpa) by 2027.

“Morupule Coal Mine has been in operation for over 50 years, and during this period in operation, our safety performance has been phenomenal,” Elias pointed out. In 2023, MCM will have achieved 22 years without a fatality and 11 years without a lost time injury. “This is indeed a remarkable achievement, and this is attributed to a strong safety culture within the business that promotes collaboration and building sustainable partnerships amongst key stakeholders.”

MCM numbers reflect the success of establishing gold standard safety strategies: Over the years, MCM production has increased from 2.8 to 4.2 mtpa. It also reflects the organization’s dedication to smart mining. “Technology is one of our key strategic focus areas,” he said. “We have invested in increasing the level of automation within the business, our underground machines are remotely operated, and we have also invested in a robust program that focuses on methane detection and capture during the underground operation.”

Motheo, which means “foundation” in Setswana, is an outstanding representation of what MCM plans to achieve through its industry leadership, having reached significant milestones on both its safety and productivity KPIs. “The project achieved name plate capacity within three months during hot commissioning. The project will deliver 1.4 mtpa.”

The project practices concurrent coal mining rehabilitation. “This simply means the mined parts of Motheo are rehabilitated to an environmentally habitable state to flourish as the natural ecosystem in which we found it,” Elias clarified.

Through the government’s Allocation of State Land service, citizens of Botswana may apply, purchase or lease unallocated urban land in different areas of the country. The national land allocation authority, MCM, and neighboring farmers recently reached an agreement to give private farmers partial surface land use leases while MCM mines underground so they can co-exist harmoniously as they contribute to support the Botswanan economy.

MCM is built on a triad of economic, business, and environmental sustainability. “We build strong partnerships with our customers to build towards the sustainability of our business,” he noted. At present, the company is working on a robust decarbonization strategy, through which it will explore diversifying their mined coal for multi-purpose use.

Once such project in the pipeline is a collaboration with Botswana Oil to research and explore the function of coal-to-liquid technology (CTL). CTL technology makes it possible to convert coal into liquid fuels such as diesel fuel, gasoline, and aviation fuel.

“Over and above optimizing the product, this initiative will bring about employment and use modern technologies of managing emissions into the environment,” he stressed. “With the needs of modern society in regard to climate action, we ensure our process causes as minimal harm as possible to the environment.”

The company strives to support the communities in which they operate through their Corporate Social Investment program, or CSI, Elias estimated that over the last four years the company has spent a minimum of BWP 3.2 million on community-related projects. “The purpose of our CSI program is to boost the socio-economic development of our communities,” he said. “Our focus is on education, health and wellness, sports, arts, and culture, as well as on vulnerable groups such as women, girls, youth, and people with disabilities.”

This past July, MCM entered into a strategic alliance with the local arm of one of Africa’s biggest commercial banks, Access Bank Botswana, to provide financial support and business opportunities to private businesses through the government’s Citizen Economic Empowerment Programme. The partnership pledges to open doors within the mining sector for small and medium businesses, offering over BWP 300 million ($22.89 million) in funding annually.

Additionally, a memorandum of understanding with MCM and financial powerhouse Letshego Botswana will give micro and small contract suppliers access to BWP 2.2 billion ($157 million) in funding over five years.

Financial institutions such as Ticano, ABSA, Bank Gaborone & FNB commercial banks within the country have pledged at least BWP 3.5 billion ($250 million) in funding over a five-year period towards the Citizen Economic Empowerment Program.

“We are in a transition phase not only in expanding our market footprint internationally to sell our product, but we are intentional about creating mineral value from our product for the benefit of everyday Botswana,” he said, using a local term for the area’s residents. “Our Citizen Economic Empowerment Initiative is a game-changer in including Botswana in the supply value chain to empower business and small macro enterprises alike.”

Creating a legacy which can exist beyond MCM will make it possible for local entrepreneurs to eventually play for other markets. Elias views the organization’s own Citizen Economic Empowerment initiative as a game-changer in terms of inclusivity. “I believe this is a legacy which can exist beyond Morupule that will stimulate our country’s economy,” he said.

“From seam to value, MCM has been delivering a world product offering to its customers since 1973,” Elias concluded. “By creating a focus on smart coal mining and through its expansion strategy MCM remains resolute in continuing to positively contribute to the socioeconomic growth of Botswana, present and future.”