India’s Yashomann Industries unit Imaginative and prescient Ridge Investments has closed the Ikongwe Mine in Botswana, attributable to a drop in export costs for iron ore, reported Reuters.
The mine has an annual manufacturing capability of 1 million tonnes of iron ore over an preliminary operational lifetime of ten years, with a grade of 65%.
Stated to be Botswana’s sole iron ore operation, the Ikongwe mine was commissioned in 2021 at a time when iron ore costs soared to document highs of $240 a tonne because of elevated demand in China.
Nonetheless, the worldwide costs of iron ore have since diminished to round $100 per tonne attributable to a decreased demand for metal, of which iron ore is the principle ingredient in its manufacturing. The drop in costs has resulted within the mineral’s exports from Botswana being ‘unviable’ amid larger logistics prices.
Imaginative and prescient Ridge director Chetan Patil instructed Reuters: “We may not afford to proceed stockpiling when we’re not exporting. We tried shopping for a metal plant at present below liquidation for native beneficiation of our ore, however we have now since pulled out of that deal. Plans are underway now to construct our personal built-in steel-making plant close to the mine.”
The mine, which commenced its first cargo in September 2021 to China, aimed to contribute to Botswana’s plans to chop dependence on diamonds.