Ikongwe Mine, Botswana's sole iron ore mine, has stopped its operation owing to falling export prices of iron ore, Reuters reported on May 31, citing a senior company official.
Owned by Botswana-registered Vision Ridge Investments, the mine is a subsidiary of Yashomann Industries in India. And it was put into operation in 2021 as iron ore prices climbed to a record-high of $240 per tonne prompted by high demand in China.
Ikongwe mine has a production capacity of 1 million tonnes of iron ore per year, with a grade of 65%, over a 10-year life span. It made its first shipment to China in September 2021.
However, global iron ore prices have currently tumbled to around $100 per tonne impacted by tepid steel demand and sluggish China's real estate market. Such a low price along with high logistical costs have made it unfeasible for exporting iron ore from landlocked Botswana.
Vision Ridge director Chetan Patil stated that due to the inability to export, they have decided to no longer continue stockpiling. They gave up the idea of buying a steel plant for local processing of their ore. Instead, the company is now planning to build their own integrated steel-making plant near the mine.
(Writing by Riley Liang Editing by Emma Yang)
For any questions, please contact us by inquiry@fwenergy.com or +86-351-7219322.