12 Nov 2023

Government seeks to encourage further investment in the exploration and exploitation of non-diamond minerals in pursuit of broadening the country’s investment base, and to further diversify the minerals sector. 

Speaking during the Absa Mining Thought Leadership forum, Minister of Minerals and Energy, Mr Lefoko Moagi said there were opportunities for investment in the mineral sector in Botswana, including in exploration for minerals, mining and beneficiation.

The forum themed; Sustainability in Mining Through Diversified Commodities and Robust Value Chain Growth, is in line with government’s objective of stimulating interest and investment by the private sector in various mineral commodities.

“There is potential for mining and beneficiation of soda ash, coal, base metals and others. Good prospects have also been realised in energy minerals, including Coal-bed methane and Uranium,” Minister Moagi said.

He said the exploration for copper and silver deposits had intensified in the western part of Botswana, adding that growth of the minerals sector locally was expected from the copper and silver discoveries in the Kalahari Copper Belt, where several exploration companies had advanced exploration projects and some sites had been granted mining licences.

Similarly, he said the potential for base metal beneficiation was undergoing a feasibility study by the private sector, building on a pre-feasibility study undertaken by government in 2016. He said Botswana recognised that economic diversification was a long term process, hence the immediate concern was how to lessen the country’s heavy dependence on diamonds.

“To address this, our fiscal regime for non-diamond minerals is predictable, has low rates for royalties, a competitive variable rate income tax formula and capital redemption. In totality, our fiscal regime is attractive and it imposes a low fiscal burden on the investor,” Minister Moagi said.

He said government had, in an effort to facilitate diversification of Botswana’s minerals portfolio, embarked on a number of projects to identify potential for mineral resources and to digitise and make geoscience information readily available to potential private companies in an effort to encourage prospecting for non-diamond minerals. Further, Minister Moagi stated that government had drawn up a Minerals Policy to guide development and growth of the minerals sector in Botswana.

The key objectives of the policy, the minster said, included maximisation of economic benefits to the nation while enabling private investors to earn competitive returns.

He said the policy also aims to nurture the creation of a competitive environment to stimulate private sector investment in minerals development as well as improve linkages with the wider economy and generation of local employment opportunities.

In line with the policy aspirations, Minister Moagi said government continued to review its mining legislation to modernise it. ends