HomeNewsMorupule Coal Mine Pushes Local Engineering Drive as Citizen Spend Nears P1.5...

Morupule Coal Mine Pushes Local Engineering Drive as Citizen Spend Nears P1.5 Billion Target

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Morupule Coal Mine wants to reduce Botswana’s reliance on foreign mining equipment suppliers. The company is pursuing plans to develop a domestic maintenance and rebuild industry. The move comes as the state-owned miner closes in on its citizen economic empowerment targets.

Chief Executive Officer Edwin Elias said the next phase of the mine’s Citizen Economic Empowerment Programme (CEEP) will focus on citizen-owned engineering companies. The goal is to help them undertake complex maintenance, refurbishment and equipment rebuild work. Much of that work is currently performed outside Botswana.

The strategy follows strong growth in local procurement. Since launching CEEP in 2022, the mine has directed about P1.3 billion to citizen-owned businesses. The programme has also created more than 1,300 jobs. MCM is now on track to achieve its 2027 targets of P1.5 billion in citizen spending and 1,500 jobs created.

“We see tremendous opportunity in technical maintenance and equipment rebuilds,” Elias said. “Rather than exporting these opportunities, we want to build the capability here in Botswana through structured partnerships, skills transfer and investment in local engineering businesses.”

Citizen procurement has increased sharply over the past four years. It rose from 29% of controllable procurement in 2022 to 53% in 2026, according to the company.

“The future of citizen empowerment is not simply about awarding more contracts. It is about building sustainable businesses with the skills, technology and capacity to compete at the highest level,” Elias said.

A proposed knockdown and maintenance workshop sits at the centre of the initiative. The facility would allow local engineering firms to undertake equipment rebuilds and component refurbishment. It would also provide specialist maintenance services. Many of these services are currently sourced from international Original Equipment Manufacturers (OEMs).

“We see tremendous opportunity in technical maintenance and equipment rebuilds,” Elias said. “Rather than exporting these opportunities, we want to build the capability here in Botswana through structured partnerships, skills transfer and investment in local engineering businesses.”

“We want Morupule Coal Mine to be a launchpad for Botswana businesses,” Elias said. “The objective is to leave behind stronger companies, stronger technical capability and a stronger industrial base that supports Botswana’s long-term economic diversification.”

The project forms part of wider efforts to deepen local participation in mining supply chains. It is also aimed at retaining more mining expenditure within the domestic economy.

Elias said Botswana’s mining sector must move beyond traditional procurement models. He said the industry should support the emergence of citizen-owned firms in engineering, fabrication and maintenance services.

He pointed to existing joint ventures between local companies and international partners. He also cited projects where citizen contractors work alongside OEM specialists. These arrangements are intended to transfer technical expertise to local businesses.

“Citizen businesses should not remain subcontractors forever,” he said. “Our objective is to see them become prime contractors capable of executing complex projects, not only for Morupule Coal Mine but across Botswana and the region.”

The mine has already recorded increased citizen participation in structural steel fabrication. Local firms are also taking on more work in conveyor systems, plate work and dust suppression projects. These are areas previously dominated by foreign contractors.

Elias said building a competitive supplier base will require cooperation across the industry. Government, mining companies and development finance institutions all have a role to play.

“The Botswana mining market is relatively small,” he said. “If we want globally competitive citizen businesses, we need collaboration across the industry to create sustainable demand and long-term opportunities.”

Morupule Coal Mine is working with CEDA, BDC, LEA and commercial lenders. The partnerships aim to improve access to finance. They also focus on supplier development and technical skills.

According to Elias, the programme’s success should not be measured by procurement spending alone. He said attention must also be paid to the number of sustainable businesses that emerge from it.

The mine is increasingly tracking supplier growth and employment creation. It is also monitoring technology transfer and the ability of local companies to win contracts beyond Morupule Coal Mine.

“We want Morupule Coal Mine to be a launchpad for Botswana businesses,” Elias said. “The objective is to leave behind stronger companies, stronger technical capability and a stronger industrial base that supports Botswana’s long-term economic diversification.”

Botswana is positioning itself for growth in coal beneficiation, copper and critical minerals. Elias said competitive citizen-owned enterprises will be essential to that strategy. He said they will help ensure more value from mining remains in the country.

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