26 Feb 2020

Minister of Mineral Resources, Green Technology and Energy Security has told Parliament that the ministry grants prospecting licenses to facilitate companies to search for and evaluate various minerals throughout Botswana.

Mr Lefoko Moagi said prospecting activities had led to discoveries of minerals which, if viable to mine, were converted to mining projects and in most cases, geological information was used to build up database of the mineral potential of the country.

He explained that a prospecting license was issued for initial period not exceeding three years, renewed twice each period not exceeding two years (seven years in total) based on meeting the work programme requirements, as per the Mines and Minerals Act.

He added that prospecting license may be renewed for period or periods in excess of seven years where a discovery had been made and evaluation work had not, despite proper efforts being completed.

“While a lot of prospecting companies spend a lot of money searching for minerals in Botswana, I am aware that some of the holders of prospecting licenses do not carry out the approved programmes of prospecting. Prospecting licenses for companies who do not comply with the approved prospecting programmes are not renewed and in some cases they are cancelled,” he said.

In July 2019, he said there were over 1 200 prospecting licenses while there were currently about 600, and the ministry’s department of mines was responsible for monitoring performance of prospecting license holders with respect to their programme of work.

Mr Moagi further explained that the Mines and Minerals Act reserved minerals permits for construction minerals to citizens and the ministry had gone beyond just granting minerals permits to citizens.

“It also realises that Batswana have challenges of availability of funds to carryout prospecting, which is a risky business. The ministry, through Botswana Geoscience Institute, conducts preliminary prospecting for certain industrial minerals, like limestone, clay and aggregates suitable for sand manufacturing, to de-risk the projects,” he explained.

Further, he indicated that the ministry had granted prospecting licenses for six identified sites (through a tender process) that were earmarked for sand manufacturing operations.

“There are currently 248 licenses issued for small mines with 90 per cent being citizen-owned and remaining 10 per cent being owned by contractors engaged in projects of national interest,” he said.

Again, the minister indicated that currently there were 48 quarries and 28 of them were owned by citizens. 

He also indicated that government had substantial shareholding in all operational large mines except Karowe, Khoemacau Zone 5 and Mupane.

As such, he said the ministry intended to amend the Mines and Minerals Act to increase facilitation of citizens to purchase shareholding in the event government opted not to participate in the project.

Member of Parliament for Gaborone Bonnington South, Mr Christian Greeff had asked the minister if he was aware that there were a lot of prospecting licenses for various minerals that were granted over the years and had not been used for years.

He also wanted the minister to state when he intended to revoke the licenses and what the ministry was doing in terms of citizen economic empowerment to ensure that Batswana participated in the mining industry as business owners and not just workers. Ends