By: Reuters

Mining chemicals importer Kemcore has been granted environmental clearance for a manufacturing plant in Botswana, paving the way for it to secure financing to build a facility to supply copper and cobalt mines in the Democratic Republic of Congo and Zambia.

The approval is an important development milestone, Kemcore founder and Chief Commercial Officer Calisto Radithipa told Reuters.

The company aims for financial close by December 2026, construction in 2027 and initial production in the first half of 2028.

Kemcore will produce mining chemical products, which include sodium metabisulphite, sodium hydrosulphide and sodium isobutyl xanthate.

"Talks with funders are advanced, and we have seen good interest from regional and local institutions, as this is a good opportunity for having exposure to the critical minerals without actually investing in a mine," Radithipa said.

The facility will be built in phases at a total cost of about $140 million, with projected annual total production of all battery mineral reagents at 150,000 metric tons per year, he added.

The plant, the first integrated battery minerals chemical complex in southern Africa, will be located close to sources of key raw materials such as gas, soda ash and salt.

Discussions to secure gas from nearby Botala Energy's ongoing coal bed methane project are advanced, Radithipa said. Soda ash and salt will be sourced from the Botash mine, 300 km northeast of Kemcore's facility.

Botala Energy is developing the Leupane Energy Hub and Industrial Park in central Botswana, where Kemcore's facility will be housed, and plans to develop 700 megawatts of hybrid gas and solar power generation capacity.

(Reporting by Brian Benza; Editing by Nelson Banya and Jan Harvey)