09 Nov 2017

Government remains committed to creating an enabling environment that will catalyse and sustain diamond beneficiation initiatives.

That was said by President Lt Gen. Dr Seretse Khama Ian Khama when delivering his State of the Nation Address on November 6.

“The minerals sector remains a principal source of revenue and primary sector for the growth and diversification of our economy,” he said.

For that reason, President Khama said government was formulating a new diamond beneficiation strategy to be concluded end of February 2018 and would continue to promote mineral beneficiation to maximise value addition.  

In 2016/17, he said copper and nickel prices continued to be unstable ‘creating uncertainty for potential investors.’

The average price of nickel, by end of June 2017, he said was 7 per cent below the same period in 2016, whilst copper prices had improved by 19 per cent when compared to the same period in 2016.

In June 2017, President Khama said the prolonged non-profitability of BCL Limited led to it being placed under final liquidation, adding that Tati Nickel Mining Company remained under provisional liquidation.

Boseto Mine which was acquired by Khoemacau Copper Mining, he said also remained under care and maintenance, adding that Mowana Mine had been acquired by new investors, who started operations in April 2017.

However, President Khama also expressed gratitude that there were more positive developments in the energy minerals sub-sector, saying A-Cap Resources was granted a mining licence in September 2016 for uranium at Serule, whilst Sese Power Subsidiary, was granted a mining licence for coal at Sese in January 2017.

Although sales for rough diamonds improved during 2016 and 2017, he said demand remained both sluggish and volatile, resulting in continued closure of marginal mines, such as Lerala and BK 11.

The polished diamond market, he said was also relatively depressed with negative repercussions on local diamond manufacturing. ENDS