BOTSWANA has awarded Canadian firm Giyani Metals a 15-year mining licence to produce battery-grade manganese, marking a significant milestone for the country’s mining sector. The Kgwakwe Hill (K.Hill) project will process manganese oxide into high-purity manganese sulphate, a critical component in electric vehicle batteries. With China controlling 90 percent of the global supply, this project places Botswana as a key player in the burgeoning battery metals market.
The K.Hill mine will initially produce 80,000 metric tonnes of high-purity manganese sulphate monohydrate annually over its 57-year lifespan. This project stands out as one of the few ventures outside China capable of producing high-purity battery-grade manganese. According to a 2023 preliminary economic assessment, the mine’s output is expected to meet the increasing global demand for clean energy technologies.
Giyani Metals has announced that construction is underway for a demonstration plant in Johannesburg, South Africa. This plant will produce battery-grade manganese for offtaker qualification, a crucial step before formal offtake agreements can be finalised with buyers. These agreements are expected to help secure long-term supply deals for the high-demand product, driven by the electric vehicle boom and global efforts to reduce carbon emissions.
Diversification of Botswana’s mining sector
Botswana, renowned for being the world’s leading diamond producer by value, is working to diversify its mining sector. Diamonds currently contribute 30 percent of the country’s revenues and 70 percent of foreign exchange earnings. However, with growing global demand for minerals vital to green technologies, such as copper, nickel, and manganese, Botswana is expanding its portfolio of resources to reduce its reliance on diamonds.
Beyond diamonds, Botswana’s mining sector also includes two operational coal mines and three copper mines. With the K.Hill manganese project, the country is positioning itself to capitalise on the rising global demand for battery metals, which are essential for the energy transition and decarbonisation efforts. As more nations shift towards electric vehicles and renewable energy, Botswana’s rich mineral resources are poised to play a crucial role in the global supply chain for clean energy technologies.
A shift towards battery metals
The increasing demand for battery metals, such as manganese, is driven by the global shift towards electric vehicles and renewable energy storage. Manganese is a key component in lithium-ion batteries, which are essential for powering electric vehicles and storing renewable energy. The K.Hill project will help diversify global manganese supply, currently dominated by China, and provide a reliable source of high-purity manganese for global manufacturers.
With a lifespan of 57 years, the K.Hill mine represents a long-term investment in Botswana’s economic future. The project is expected to create jobs, boost local economies, and contribute to the country’s broader economic diversification goals.
Looking ahead
Botswana’s decision to grant Giyani Metals this licence signals the country’s commitment to becoming a major player in the global battery metals market. As electric vehicles and renewable energy technologies continue to grow in importance, the demand for critical minerals like manganese is expected to soar. This project positions Botswana to take advantage of these market dynamics, further solidifying its role in the global energy transition.
The success of the K.Hill project could pave the way for additional investments in Botswana’s mining sector, particularly in other critical minerals such as copper and nickel, which are also essential for clean energy technologies. As Botswana continues to diversify its mining portfolio, it is poised to play an increasingly important role in the global supply chain for the energy transition.
