Volume 65 December 2026-January 2026 : Business

Nestled on the south-western edge of the Mmamabula coalfield, approximately 60 kilometres northeast of Gaborone, the Masama coal mine stands as a beacon of Botswana’s mining potential. This first opencast coal mine project in the country boasts uniform coal seams, fully developed infrastructure, and minimal geological disturbances.

Operated by Minergy Limited, a Botswana-registered company listed on the main board of the Botswana Stock Exchange, the Masama mine is making waves in the global coal market. Chief Executive Officer (CEO) Matthews Bagopi expressed his enthusiasm in a recent interview with Kutlwano, praising the mine’s high-quality coal, which is characterised by low ash and sulphur content. The mine has an impressive monthly production capacity of 125 000 tonnes of Run of Mine (ROM) coal, yielding 75 000 tonnes of saleable products.

Bagopi highlighted the mine’s export profile, mentioning that coal is shipped to Namibia, South Africa, as well as countries in Asia and Europe. With a facility capable of processing 250 000 tonnes of ROM coal each month, Masama targets both the sized industrial market in southern Africa and seaborne thermal coal exports. The mine operates under a 25-year mining license, valid until August 2043, and spans an area of 67 square kilometers. It harbours an estimated 374 million tonnes of coal resources, with 78 million tonnes classified as reserves, promising a mine life of 100 years. However, Bagopi acknowledged challenges, particularly the area’s chronic water shortages essential for production.

Proximity to Medie village and surrounding agricultural fields has complicated mine development due to land legislation requirements. Furthermore, the coal industry faced significant setbacks in early 2023, prompting Minergy to suspend operations in March after a drastic 33 percent decline in coal prices since December 2022. This price drop adversely affected cash flows, resulting in overdue payments to contractor Jarcon Opencast Mining Botswana.

In addition to financial hurdles, the mine faced operational disruptions caused by heavy rainfall, reduced regional sales, and workforce reductions due to COVID-19. Rising diesel prices further compounded these challenges. The temporary halt in mining operations was a strategic move to optimise costs amid the pandemic.

Minergy continued selling stockpiles to manage fixed costs and ultimately reorganised operations by terminating its contract with Jarcon. Fortunately, by February 2024, mining operations resumed under a new contractor, signaling a rebound in operational stability. As of October 2024, the mine employs 462 individuals, 455 of whom are Batswana, including 382 men and 80 women.

Corporate Services Manager Bonkie Moitoi emphasised the company’s commitment to community development since the mine’s inception in 2019. Initiatives have included grading community sports grounds and providing electricity to the entire Medie village. The mine has also hosted the Kweneng East Community Wellness Day and donated essential medical supplies to the Lentsweletau clinic.

Looking ahead, Moitoi outlined future projects including the tarring of the Medie-Lentsweletau road and the construction of a water pipeline tapping into the North-South Carrier pipeline, expected to be completed by 2029.

Kgosi Moatlhodi Kgabo of Medie village expressed gratitude for recent developments, particularly the electricity provided to the community, while voicing hopes for further assistance in the village’s growth.

As the Masama coal mine navigates its challenges, it remains a significant contributor to both Botswana’s economy and its community, reinforcing the vital role of coal in the nation’s future. ENDS

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