20 Jun 2016

The government wants to derive maximum benefits from mineral resources through the Minerals Policy Act.

Presenting the Draft Minerals Policy to members of Ntlo Ya Dikgosi on June 17, the director of Mineral Affairs, Ms Nchidzi Mmolawa said the policy addressed issues of citizen economic empowerment, economic diversification and employment creation.

The objectives of the policy is to maximise economic benefits to the nation and profits for investors, create a competitive environment and stimulate private sector investment in minerals development. The other objective is generation of employment and diversification in the mineral sector.

The government would continue as an investor and look for new opportunities and would also continue to regulate and issue prospecting and mining licenses.

Ms Mmolawa said policy principles were fostering a competitive investment environment, ensuring security of tenure, where investors started with prospecting and eventually acquired mining licences

The other principle is to provide a stable, transparent, progressive and predictable fiscal regime and ensuring protection of the environment and public health.

Ms Mmolawa said government wants to make Botswana an international diamond trading hub where diamonds from other countries would be marketed and sold in the country.

The coal sector, however face challenges as government had hoped a railway line would be constructed, but it has since emerged the Trans Kalahari railway would be costly while the Mozambique railway faces challenges as Zimbabwe has not yet committed itself.

Ms Mmolawa said coal would be used to generate power while some would be exported.

Batswana however have been urged to participate in industrial minerals as they are less costly.

Talking about natural gas, she said government would create an enabling environment by providing necessary infrastructure.

Ms Mmolawa said government wanted to encourage Small Scale Mining, which under the Mines and Minerals Act, produce less than 50 000 tonnes per annum. She said government would not participate in the small scale mining, but would provide financial assistance.

For their part, dikgosi were skeptical about citizen participation as mining in nature was expensive as it started at exploration level where millions were spent before minerals were discovered. ENDS