Selebi Phikwe will house a steel manufacturing plant following a ground breaking ceremony that paved way for the commencement of construction of the facility aimed at reversing the fortunes of the ailing mining town.

Pula Steel will be the fully integrated steel manufacturing company in the country and will invest P89 million on the project that will create 1000 direct jobs at full production.

“Of pleasant note is not only that the plant will reduce the import bill, but also that it will serve and buttress the mandate of the Selebi Phikwe Economic Diversification Unit (SPEDU) to promote economic development and sustainability of the region,” Vice President Ponatshego Kedikilwe said at the groundbreaking event.

He said Selebi Phikwe and Botswana are strategically located at the heart of SADC to provide fully integrated facility through the capacity of Pula Steel and Casting Manufacturers to serve the region and local markets.

“Steel is a basic commodity which is required by any economy; the high demand for steel can be attributed to infrastructural developments, mining and construction etc,” Kedikilwe said.

Kedikilwe said Botswana has been a net importer of steel at high premium with demand for steel in the country amounting to P2.6 billion in 2013. “The demand was met by importing from a number of countries with South Africa being the largest source of imported steel at 50 percent, followed by China with 40 percent,” the VP revealed.

“This scenario has made us net importers of steel at a very high premium. As a result, several projects including some national development projects have been delivered at exorbitant costs”.

“In this regard, Pula Steel brings hope and has the potential to assist in mitigating costs of some public infrastructural projects, by supplying locally produced steel of comparative and competitive quality”.

Kedikilwe said he also hoped this steel plant will be a springboard for BCL, a copper/nickel miner based in Selebi Phikwe in developing the iron production circuit  to curb over reliance on import of steel and steel related products.

“In terms of Polaris II configuration, the iron production circuit, one of the themes BCL strategy, aims to beneficiate iron ore which will create employment opportunities, reduce steel imports and generate foreign exchange for the Botswana economy; in short grow the economy”.

The steel project will inject new life to Selebi Phikwe and hopefully attract investment into the town.