05 Nov 2013

President Khama says minerals remain a principal source of revenue and primary sector for growth and diversification.

In his State-of-the-Nation-Address , President Khama said the sector, nonetheless, continues to be challenged by depressed markets as diamond markets have shown improvement but remain sluggish.

He said at the end of September 2013, the average diamond price was three per cent higher than for the same period in 2012, and that carat sales and revenue for 2013 were forecast to be 20 per cent and 17 per cent above those of 2012.

President Khama said the Lerala and BK11 mines were still under care and maintenance while the Ghaghoo Mine’s start up has been delayed and was now expected mid-2014 while there was ongoing success of the new Karowe Mine.

Meanwhile, President Khama said nickel and copper prices have declined during 2013 as by the end of August, the average sale price for nickel and copper were 13 per cent and eight per cent lower than that of the whole of 2012.

He said gold prices have also declined in August 2013, and are 14 per cent their 2012 average. The President further said the relocation of the Diamond Trading Company International (DTCI) from London to Gaborone was slightly ahead of schedule.

“The sight sale in Botswana is now scheduled for next week,” he said. President Khama said the government continues to encourage the private sector to take advantage of the opportunities presented by the relocation exercise.

Meanwhile, President Khama said the Okavango Diamond Company conducted its first full scale sale in October 2013. He said 76 companies from the world’s major diamond centres participated and that over 220 thousand carats were sold for P343 million (US$40.3 million).

He said the Boteti Mining Company, through their dual tender sales, sold over P900 million worth of diamonds as at the end of September 2013. President Khama said the diamond cutting and polishing sector continues to grow, employing 3 651 as of August 2013, with 11 additional companies licensed, bringing the total number to 27.

He said DTC Botswana sales to the local polishing industry grew to US$ 618 million in 2012, and that the target for 2013 is USD 770 million. Ends