Ikongwe Mine in Botswana halts operations
Production at Ikongwe Mine has been halted following export prices for the mineral. The mine has been in production since 2021, a time when iron ore prices recorded highs of $240 per tonne. However, global iron ore prices have now dropped to approximately $100 per tonne due to decreased steel demand.
The reduced prices have rendered exports from landlocked Botswana economically unfeasible, especially considering the high logistics costs involved. Consequently, Botswana-registered Vision Ridge Investments has decided to cease stockpiling since it is not actively exporting.
Ikongwe Mine
The company initially explored the option of purchasing a steel plant that was undergoing liquidation, intending to locally process the ore for added value. However, it has since withdrawn from that deal. Instead, plans are underway to construct an integrated steel-making plant near the mine.
Ikongwe Mine has a production capacity of one million tonnes of iron ore per year, projected over a ten-year period. The ore has a grade of 65%. In September 2021, the mine made its first shipment of iron ore to China, which was a step toward reducing Botswana’s heavy reliance on diamond exports. Although mining’s contribution to Botswana’s GDP has declined in recent years, accounting for less than 20% in the previous year, the country still heavily depends on revenue from the export of precious stones, which constitutes approximately 70% of its foreign currency earnings.
