This action might not be possible to undo. Are you sure you want to continue?
's poorest countries. Despite the slow recovery in the global economy which affected the country's mineral exports, the mineral sector continues to play a leading role in the economy, contributing significantly to export earnings and employment of human resources. The sector is still subject, however, to a continuing quota on its diamond sales, depressed prices for copper and nickel and a weak market for soda ash. With a view to creating a more balanced development, the current National Development Plan 7 puts emphasis on the need to diversify the economy away from the mineral sector. Mineral revenues are invested in viable projects that serve these objectives of diversification and export promotion.
DIAMONDS Botswana's competitive edge in diamonds remains as sharp as ever. While its rapid rate of growth in the past cannot be projected to continue into the future, diamonds will remain a major contributor to both the Gross Domestic Product and government revenues. Diamonds were first discovered in Botswana at Opera in 1967, with additional exploration revealing two smaller kimberlite pipes at Lethakane - the exploration of both pipes was well under way by 1980. Investigations of the feasibility of expanding production at the Orapa mine continue and results of the study are expected in mid-1994. Hand sorting of diamond in a final checking for quality and flaus at Orapa House. The Jwaneng pipe was discovered in 1972, with production at the mine beginning in 1982; construction of additional plant is expected to be fully operational by mid-1995. Sales at Debswana have remained strong due to a combination of factors such as higher carat sales, improved prices of diamonds, and a stronger US dollar compared to the Pula. Over the years new technologies and improvements in operational efficiencies have been effected at Debswana's operations, resulting in an increased recovery of finer diamonds which would otherwise have been lost to tailings. In the past few years diamond cutting and polishing factories have been established in an effort to diversify within the diamond industry and create additional employment opportunities. In addition to the diamond Manufacturing Company established in 1980 and currently employing nearly 70 workers, two more factories were recently opened at Serowe and Molepole. Teemane Diamond Manufacturing Company in Serowe had a staff complement of 241 as the end of 1993, representing an increase of 91 over 1992; this factory is expected to achieve its full complement of 500 in 1995 when it will be fully operational. In 1993 a state-of-the-art diamond cutting and polishing facility, with both automated and manual equipment, was opened in Molepole. Lazare Kaplan Botswana (LKB) is a subsidiary of LAzare Kaplan International, largest manufacturer of diamonds on the United States, with a worldwide distribution network for its ideal cut diamonds and jewelry products. The Government of Botswana, represented on LKB's board of directors, owns 15 percent of the shares. The current total of Botswana employees numbers over 200, with the workforce being trained by a complement of international diamond experts. development and expansion will be
gradual, with economic viability remaining paramount.
No. 1 shaft at BCL copper-nickel mine at Selshi-Phikwe. COPPER-NICKEL Approximately 95 million tonnes of copper-nickel ore deposits exist in the Selebi-Phikwe area, occurring in two ore bodies and having an average metal content of 0,68 percent nickel and 0,71 copper. These deposits are mined by BCL Limited, a mining operation which produces copper-nickel matte from three shafts for export. As at the end of 1993, the company employed about 4600 citizens and 245 expatriates, making it the single largest private sector employer in the country, with mining plans extending to the year 2005 and exploration ongoing to extend this date even further. Ore reserves at that period stood at approximately 93 million tonnes. The Selkirk mine near Francistown is operated by Tali Nickel Mining, a company which continues production of copper-nickel for processing at BCL, while trial mining at a third pit at the Phoenix deposit adjacent to Selkirk was conducted in 1992/93 to enable investors to prepare a feasibility study, including design of an optimum mining method. Improved international metal markets and the development of a rail to Sua Pan have also revived interest in the old Bushmen mine and the Matsitama deposits, with a mining lease for the latter issued to Thakadu Mining. SODA ASH Total annual world consumption of this alkaline chemical basic to everyday life total some 30 million tons, a figure expected to increase to more than 40 million tons by the turn of the century. Approximately two-thirds of the World demand for soda ash is one produced chemically, using salt and lime as raw materials. In southern Africa approximately 35 percent of soda ash is used in glass manufacture, 30 percent in metallurgical applications, 13 percent in the detergent industry and the balance in general chemical manufacture. The soda ash plant at Sua Pan is currently operating below capacity, mainly due to weak market conditions for its products. Soda Ash Botswana's facility uses the natural carbonate resources of Botswana and has installed capacity to make the sub-continent virtually independent of imported materials. This plant also has the capacity to produce 650000 tons of salt per year, the quality of the product making it ideally suited as a raw material in the production of certain chemicals. OTHER MINERALS Botswana's other smaller deposits of minerals, although usually small operations, provide needed employment for many Botswana. Coal resources suitable for power station use have been identified in eastern Botswana, and Morpule Colliery, the country's only coal mine, is situated near Palapye and operated by the Anglo American Corporation. The Mmamabula area also contains large deposits and could conveniently supply Gaborone's industrial needs. Gold was one of the earliest minerals to be exploited, with a number of mines operating today, most of them salvaging from tailings left by older, less efficient methods of extraction. Monacrh Gold Mine has been re-opened with more advanced technologies for small scale operations, Jacomar Manganese re-opened the manganese mine at Kgakgwe Hill in the southern district, and production is under way at the Obatse Clayworks.
In the western part of the country an aeromatic survey has identified deep sedimentary basins containing non-magnetic fill and which are potential gas and oil bearing formations. Crushed stone and sand as well as limestone are quarried for use in road building and the construction sector. Semi-precious stones are also collected and processed. Other minerals known to occur in Botswana include antimony, chromite, feldspar, fluorine, graphite, gypsum, kaolin, lead, manganese, platinum, silver, talc, uranium and zinc.
Botswana: Mineral Industry Overview
Written by: Editorial Staff on September 25, 2011.on September 24, 2011. Botswana’s mineral resources include base metals, coal, diamond, salt, and soda ash. Mineral exploration in Botswana is difficult because the geology of most of Botswana is poorly understood owing to extensive cover by recent sediments, and available geologic information was based mainly on drilling and geophysical surveys. Unexploited mineral resources include asbestos, chromite, feldspar, graphite, gypsum, iron, and manganese that are located mostly in remote areas or beneath a thick sequence of Kalahari sands. The geologic evolution of Botswana took place during several important metallogenic epochs. In Botswana, the Zimbabwe craton hosts copper, gold, lead, nickel, and zinc mineralization and the Limpopo Mobile Belt contains copper, nickel, and minor occurrences of precious metals. The Transvaal Supergroup contains asbestos, iron, and manganese. The Molopo Farms Complex was thought to contain chromite and platinum-group metals. The Karoo Supergroup is the largest stratigraphic unit in southern Africa, covering almost two-thirds of the present land surface, including central Cape Province, almost all of Orange Free State, western Natal, and much of Malawi, Zambia, Zimbabwe, and Transvaal. Major deposits of coal and diamondiferous rocks occur in the Karoo. Deep sedimentary basins within the Damara Province were thought to be potential hydrocarbon traps. The Makgadikgadi Basin, which is a relatively young geologic feature, has deposits of salt and soda ash (Ministry of Minerals, Energy and Water Resources, 2009). Mineral exploration and mining in Botswana are regulated by the Department of Geological Survey and the Department of Mines. The Department of Geological Survey’s role is to gather, collate, assess, and disseminate information related to the groundwater, rocks, and mineral resources of the country. It also administers those sections of the Mines and Minerals Act that concern mineral exploration. Three basic types of mining licenses are granted in Botswana—the reconnaissance permit, the prospecting license, and the mining lease. Mineral rights are the property of the state, irrespective of the ownership of the land on which they are found. Residents of communities in the areas of exploration and mining development cannot claim ownership of mineral rights from existing mines in the country, and the Basarwa are no exception. The Government’s goal is to ensure that all the citizens have a common stake and
Production of these industrial materials depended on consumption by the construction industry. produced 1. produced salt and soda ash.595 metric tons (t) of nickel. clay. (a subsidiary of OJSC MMC Norilsk Nickel of Russia) produced 28. the mineral industry operated mainly on a privately owned free-market basis.) Ltd. 23. (BCL) of Botswana processed copper-nickel concentrate from its Selebi-Phikwe Mines.6 million carats in 2008. (Debswana). Energy and Water Resources. . Soda ash production was more or less the same as in 2008 and had a significant though small role in the national economy. Coal production in 2009 was about the same as in 2008 (Ministry of Minerals. Exploitation of Botswana’s rich mineral reserves. BCL toll-smelted concentrate from Tati Nickel’s Phoenix open pit mine. In addition to these major operations. Production With the exception of copper. Almost all the country’s roughdiamond output was by Debswana Diamond Co. Botswana Ash (Pty. and provides administrative services. and production was not reported separately. especially diamond. (Pty. 2010).176 kg in 2008. gravel.8 billion in 2008 (Israeli Diamond Industry. IAMGOLD Corp.530 kilograms (kg) of gold in 2009 compared with 3.146 t of copper. 2009). The semiprecious stones were mainly varieties of agate and carnelian. In 2009. legislation. there was a significant decrease in diamond production.enjoy common benefits from mineral revenues (Ministry of Minerals. and sand from different areas of the country. The Department works to prevent mining occupational diseases and injuries and to minimize degradation of the environment.7 billion in 2009 from $2. 2009). and dimension stone. aggregates. it saw diamond production drop to 17.) Ltd. a number of medium. which was a 50-50 joint venture of the De Beers Group of South Africa and the Government. in partnership with stakeholders. which was the sector that was the most sensitive to financial shock. (Pty) Ltd. In 2009. companies extracted clay. Diamond sales declined to $1. the mineral sector was not affected in a major way by the global economic downturn.and small-scale mines produced agates. crushed stone. Energy and Water Resources.7 million carats in 2009 from 32. Botswana’s mineral resource sector. Energy and Water Resources. Bamangwato Concessions Ltd. has been a significant driver of the country’s economy. Tati Nickel Mining Co. Also. The Department of Mines. develops policy. Minerals in the National Economy In 2009. Structure of the Mineral Industry Although the Government maintained an equity position in most of the major mining companies. was negatively affected by international credit crunch. Although the country remained a leading producer of diamond (by value) and the world’s third ranked producer of diamond (in terms of volume) after the Democratic Republic of the Congo [Congo (Kinshasa)] and Australia. diamond. The Department of Mines was reviewing the Mines and Minerals Act to ensure that mining license holders make adequate financial provision to fulfill the environmental obligation of rehabilitating the mines at the end of mine life (Ministry of Minerals. and gold production.000 kg. and programs for mineral exploration. Production of semiprecious stones totaled about 30. and 330 t of cobalt from its nickel-copper matte. 2009).
Botswana’s government has enacted a number of measures to ensure that revenues are used to aid economic diversification. which refers to the government adopting a fiscal rule that states that minerals revenues must be used to expand the economy’s productive base.mic diversification will have generated more employment opportunities.Botswana: Minerals sector revenues to aid economic diversification With the output of diamond production set to decline over the medium term as reserves diminish. growth in the non-mining sectors is burgeoning. The Botswana government continues to focus on investment in its mining industry. Vision 2016. rather than fund consumption expenditure. The ‘Botswana Mining Report Q1 2011’ states that the economic dominance of diamonds is expected to continue over the coming decade. as it constitutes the bulk of the country’s earnings. as economic growth in the formal and informal sectors and econo. The Vision 2016 council. Owing to this rule and other initiatives included in successive six-year National Development Plans and the long-term national development policy. Energy and Water Resources (MMEWR). which aims to improve the socioeconomic climate in Botswana. 'Botswana is the world’s leading producer of gem-quality diamonds with the capacity to produce between 30-million carats and 34-million carats.' states the Botswana Ministry of Minerals. 'Unemployment will be drastically reduced. which monitors and evaluates the effective and timely implementation of the vision by all stakeholders of Vision 2016. states on its website that it expects income per capita to grow by 6% by 2016. with the authorities in Gaborone having an impressive record in garnering the maximum benefit from the production of diamonds. The minerals sector contributes 75% of national .' the council states. This is stated in London-based company Business Monitor International’s ‘Botswana Mining Report Q1 2011’.
base metals miner BCL’s copper/nickel mine. The promotion of mineral investment in Botswana is the mandate of the Mineral Affairs Division. that streamlines licensing and enhances security of tenure. since the discovery of diamond. However. Botswana also produces coal. the OCGT will run on liquid fuel and will offtake CBM from any company that is able and not willing to invest downstream. which are mainly generated from taxes and dividends from diamond production. are major focus areas in metals and mineral exploration. Initially. and encourage links with the rest of the economy to expand value-addition activities.' states the report. copper and nickel deposits. and the development of a national integrated geoscience information system for titles and data management. The Ministry aims to create a competitive environment to stimulate private sector investment in mineral exploration and exploitation through issuing diamond export permits in two days. implemented in 1999. these companies are currently struggling to produce CBM at commercial scale. Other minerals that have been identified include uranium. investment in new facilities for the storing and inspection of technical data on mineral prospectivity. Orapa and Letlhakane diamond mines. Coal and uranium have also emerged as key future revenue generators for the Botswana mining industry. as well as investor-friendly mineral legislation. exploration activity in Botswana has generally been on the increase.export earnings.' says the MMEWR. a prospecting licence in 60 days and mining concessions in 15 days for small-scale mining operations and large-scale mining operations in 20 days. Further. Tati Nickel Mining Company’s copper/ nickel mine. 40% of gross domestic product and 50% of government revenues. 'Soda ash and chemical-grade salt supplier Botswana Ash is located in the Sua Pans and produces about 300 000 t of soda ash from brine solution for export to neighbouring countries. while enabling private investors to earn competitive returns. zinc and coal-bed methane (CBM).mic benefits for the nation. which is within the domain of the MMEWR. The MMEWR explains that. Diamonds. 'The exploitation of rich mineral reserves.ery of massive mineral deposits. Initiatives undertaken to increase investment in the country’s minerals sector are the enactment of a new mining code. in Orapa. the government is constructing a 90 MW open-cycle gas turbine (OCGT). copper production and exploration company . near the gasfields.' the MMEWR states. gold and soda ash. after it was discovered by the Botswana government in early 2000.' explains the MMWER. the discov. 'There are three companies actively prospecting for CBM. especially through the downstream processing of minerals. It offers good investment potential in the manufacturing of detergents and glass. has been a significant driver of Botswana's economic growth. However. especially diamonds. Besides diamonds. including samples and cores. The Ministry attributes this to the country’s attractive geology. the reduction of the fiscal burden on marginally economic mines. where commercially viable. the availability of reasonable up-to-date and easily accessible geological data compiled by Botswana’s Geological Survey Department. MMEWR outgoing permanent secretary Gabaake Gabaake previously stated that Botswana would look to reduce the time taken to issue prospecting licences to 30 days from application. 'The government’s main aim for the minerals sector is to increase the econo. and earn more than three-quarters of the country's export revenues. copper/nickel matte. Current confirmed mining operations in the country include diamond-miner Debswana’s Jwaneng. along with copper and nickel. the reform of procedures in the MMEWR.
graphite. Currently. chromite. are being considered. is being mined to supply power utility Botswana Power Corporation’s Morupule power station. as well as gold in the Francistown area. the BCL smelter and Botswana Ash. only the Morupule colliery.African Copper’s Mowana copper mine. Considerable opportunities also exist for coal and manganese. precious-metals mining and exploration company IamGold’s Mupane gold mine and Botswana Ash’s soda ash and salt mine. To solve this issue.billion and $9-billion. In terms of the Namibian route. Ministry of Works director of railway affairs Robert Kalomo said in a media report. with good potential for private investment identified. The country’s unexploited mineral resources include asbestos. which are mostly unexploited owing to logistical constraints to the markets. in Palapye. The construction of a $9-billion railway line connecting Botswana’s Mmamabula coalfield with the Namibian port of Walvis Bay is expected to start in 18 months. many of which are located in remote areas or beneath a thick sequence of the Kalahari sands. gypsum and iron. which involve the construction of a rail line to either Namibia or Mozambique. feldspar. Construction of the Trans-Kalahari Railway would take five years. with the country to enter into a memorandum of understanding with Botswana. Botswana has in excess of 200-billion tons of coal resources. a prefeasibility study is ongoing and is expected to be complete in March. The route to Mozambique is under discussion. two potential routes. with costs expected to range between $5. .
.. Here's what I’m going to share. the minerals mined in Botswana 2. the mining industry objectives and policies. Benefits on Mining in Botswana I don’t know much about the mining policies of Botswana but one thing for sure is that the country has made it a priority for its people (Batswana) to benefit from the foreign currency earned from the mining activities that take place in the country.. . Objectives and Benefits to Batswana If you want to know about Botswana mining then you are going to read this page. however what most people don’t know is that there are many other minerals mined in the country. 1. These include: • • • • • Coal Gold Soda Ash Salt Copper and nickel Even though the above minerals might not bring in as much foreign revenue as diamonds. the benefits of mining in Botswana to the people of Botswana 3. Let’s get right into it. they still play a significant role in the contribution to the country's GDP..Botswana Mining: Minerals Mined. Minerals mined in Botswana Botswana is famous for being the largest diamond producer by value.
. The creation of employment and training opportunities for Batswana is also vital. "Botswana's mineral policy aims to strike a balance between maximizing economic benefits for the nation while allowing investors to earn competitive returns. generate linkages with the rest of the economy and increase local value added. Mines are labor intensive and every mine in Botswana therefore employs hundreds if not thousands of Batswana (many of which would unlikely be unemployed if they didn’t work at the mines) These are just a few of the many benefits the mining industry has made possible.One of the main objectives of mining in Botswana is to improve the lives of the people of Botswana. The Government of Botswana sponsors thousands of students every year not only for primary and secondary education but also for tertiary education." . Another way that mining in Botswana has been of benefit to Batswana is through employment. In addition to educations. Botswana Mining Objectives and Policies I mentioned above that I’m not too familiar with the policies and objectives of the Mining industry in my country . as is protection of the environment. Read more about it below. From experience i can say that indeed this objective is being met.. Other objectives are to encourage prospecting and new mine development. medical services are also heavily subsidized enabling Batswana to get medical attention at really low prices at local clinics and hospitals. however i did some research for you and i found the aims and objectives of the industry .
In this page I will be sharing some of these minerals. Botswana diamonds have literally shaped the economy of the country and as a result improved the lives of Batswana who continue to benefit from the foreign revenue earned through the mining of diamonds in Botswana.. Diamonds Diamonds were one of the very first minerals to be discovered in Botswana. Gold Gold mining was first done in Francistown over a century ago. In fact Francistown was the first ever town in Botswana because of the Gold deposits that were discovered in the Town. Since then. the other mine is the one found in Selebe Phikwe.. however what most people don’t know is that there are several other minerals that are heavily mined in Botswana.Mining in Botswana Discover the Minerals Mined in Botswana Mining in Botswana is most times associated with diamonds. One is located near Dukwi. Copper and Nickel I don’t know much about the copper and nickel mining in Botswana. Below are the other minerals mined in Botswana. There are also two other mines where copper nickel is mined. let’s talk a bit about the Diamond mining industry in Botswana. that the economy of the country started to improve. which was the first Copper and nickel mine in Botswana. a year after the country gained its independence. Most of the mining activity took place during the gold rush in the 1890's and again between 1920's and 1930's. Coal . Today Gold mining in Botswana is done at the Mupane Gold mine which is also in the Francistown region. Before that however. It was only after the discovery of diamonds in 1967. I know many of my friends and cousins work at a copper and nickel mine located about 30km from Francistown along the Matsiloje road. however . a small village found between Francistown and Nata.
7 per cent from 2011 to 2015. the mining industry in Botswana is one of the key drivers of the country’s economy. It is alleged that the mineral industry of Botswana has dominated the national economy since the early 1990s. his is pointed out in the ‘Botswana Mining Report Q1 2011’. “We believe that mining can show an average annual growth rate of 7. The coal is produced primarily for domestic power supply and the mining industry. the coal is also supplied to Zambia. Production initially started in 1991 and over the decades Botswana Ash has become one of Africa's largest producers of both soda ash and salt.based company Business Monitor Inter-national (BMI). uranium and coal sectors come on stream. Mining in Botswana Like in most countries. which states that diamonds will remain the mainstay of the world’s number one rough diamond export country. In addition to that. from 2011 to 2015. with the industry reaching a value of $12-billion in 2015. Soda Ash and Salt Soda Ash and Salt are both produced at Sua Pan by Botswana Ash (Pty) Ltd. this is according to Wikipedia. with key mining projects being developed in the copper.” BMI stated. published by London.Coal in Botswana is currently produced in the Morupule Colliery which is located between Palapye and Serowe. Zimbabwe and the DRC. Closer look . It is expected that. uranium and coal sub sectors. Botswana mining was ranked 14th and top on the Africa continent. beating also South Africa which was placed 67 of 79 jurisdictions across the world. The plant has soda ash reserves that are expected to last up until the year 2080. Botswana’s mining sector will show an average growth rate of nearly eight per cent as new projects in the copper. In a recent report published by Toronto based Fraser Institute.
After a couple of years of decreased diamond mining in response to the global recession. De Beers geologists discovered the kimberlite pipe north of the village of Letlhakane and later that year found the diamondiferous pipe at the village of Orapa. the DeBeers group postponed moving its worldwide diamond aggregation from London to Botswana. exports increased 136. In addition. "It all began in 1967.3 percent increase compared to January 2010. Most of Botswana’s diamond production was of gem quality. which resulted in the country’s position as one of the world’s leading producer of diamond by value. the Jwaneng diamondiferous pipes were discovered. 40." Former Chairperson. as part of Botswana's drive to diversify and increase local value added within the mining sector. cutting. In 2010. followed by the smaller mines of Lethlakane and Damtshaa. The main purpose of the company is to mine.12 billion exported in 2009.3 million worth of diamonds in January. and marketing to Gaborone from London. And in December 2004. Letlhakane and Damtshaa.making Jwaneng mine the largest diamond producer by value. recover and sort diamonds. Orapa. Debswana diamond mining operations are situated at Jwaneng. in the past year diamond extraction is picking up. with known current reserves sufficient for at least the next 20 years. aggregating. According to a report by Idex Online. In 1972. according to government reports. Following the success discovery of diamond. June 2009. polishing. In 2011. De Beers opened the Diamond Trading Center Botswana (DTCB) in 2008 to shift sorting. Like the rest of the world. board of directors Eric Molale. Botswana exported $354. diamond mining is set to continue to be the mainstay of Botswana’s economy. However. Botswana exported $3. Botswana also felt the recent economic meltdown which resulted in the decrease of demand for diamonds. It is one of the the largest non-government employer and one of the largest earner of foreign exchange in Botswana. What has become one of the single-richest diamond mines in the world opened in Jwaneng in 1982. In 2009.Botswana is also best known for its diamond production. which has been the leading component of the mineral sector since large-scale diamond production began 25 years ago. Debswana has played a significant role in the transformation of Botswana's economy. Debswana negotiated 25 year lease renewals for all four of its mines with the Government of Botswana. based on figures released by the Bank of Botswana. Botswana gave birth to one of the leading diamond producer. Formed by the government and South Africa’s De Beers in equal partnership. The Orapa 2000 Expansion of the existing Orapa mine was opened in 2000. De Beers are set to increase production even further to meet the revival in global diamond consumption. . but Botswana mainly exports rough diamonds. when after a 12 year search. It is alleged that the search of diamonds in Botswana began in the Tuli Block in 1955. It is alleged that the first mine began production at Orapa in 1972.16 billion worth of diamonds compared to $2.8 percent. Month over month. Botswana’s diamond’s sales volume for 2009 was 37 per cent lower than that of 2007. Debswana. A number of companies have polishing facilities in the country.
BCL also toll-smelted concentrate from the Phoenix open pit mine. Government policy encourages prospecting and new mine development. and Botswana always come to the picture as natioinalisation talks becomes louder and louder everyday. In 2002. and the Morupule Colliery. State involvement The Government of Botswana’s main objective for the minerals sector is to continue getting the maximised economic benefits from the sector for the nation while enabling private investors to earn competitive returns. with statements that Botswana mining is operated by the state is slowly gaining momentum in South Africa. there still seemed to be confusion in the way the minining industry is operated in Botswana. the smelter operated by BCL of Botswana processed copper-nickel concentrate from the company’s Selebi-Phikwe Mine. but an equal partnership between the government and the private giant De Beers. Centametall and Falconbridge shipped the nickel matte to the Falconbridge Nikkelverk. the BCL smelter produced 68. During 2005. stresses that "we are not a state mining company". spokesperson for Botswana's Debswana. about 200 kilometers (km) south of Francistown. The reserves at the Selebi-Phikwe Mine. the Botswana Railways. "The government does not play any role in the day-to-day running of the company.AP. Esther Kanaimba. which are in the forefront of the nationalisation campaign was quoted giving example of state own mine countrie and Botswana was also there. Nationalition An issue which is sensitive and bubbling around South Africa is nationalistion of mines. And no doubt the way in which the mining industry is operated in Botswana has proved to be beneficial for the country and its people. Under an agreement signed in 2001 by Centametall and Falconbridge International of Bardados. were expected to be exhausted by 2011 or 2012. However.637 metric tons (t) of nickel-copper-cobalt matte. Spokesperson for the African National Congress (ANC). which was operated by Tati Nickel Mininig (a subsidiary of LionOre Mining International of Canada." Kanaimba said. however. In a report by Sapa . The BCL operation accounted for about 60 per cent of Botswana’s industrial sector’s total energy consumption. In eastern Botswana. and it promotes . In 2005. BCL and Falconbridge agreed to extend to 2015 the tolling agreement under which BCL-mined nickel matte was refined in Norway.Copper and Nickel mining According to Wikipedia. the Botswana Power Corporation. the Government continued to evaluate proposals to sustain the town of Selebi-Phikwe after the closure of the mine and to minimize the potential negative impact of the closure on operations of the BCL smelter.
clear and streamlined licensing procedures. the retention license (RL). The new Mines and Minerals Act was favourably received by industry and it compares well with other modern mineral legislation elsewhere meeting investor concerns on issues such as security of tenure. mining and mineral processing in Botswana is continuously being reviewed from time to time to make it more competitive. This is done by ensuring the rule of law prevails and investors are treated fairly through development and implementation of the fiscal and legal policy framework for mineral development which aims at making Botswana’s minerals sector to be more competitive and attractive to investors. financial and commercial aspects of the proposed project including Government participation. where this is commercially viable. legal and policy framework for mineral exploration. Restrictions on the transfer of mineral concessions have been Liberalised The introduction of a new type of mineral concession. with the most notable changes being the amendment of Mines and Minerals Act in 1999 and the Income Tax Act in 2006. Major highlights in the mining code are as follows. Energy and Water resources (MMEWR) who should ensure. thereby improving security of tenure of mineral concessions holders in Botswana. The grant. in the public interest. replaced by an option to acquire up to a fifteen per cent working interest participation in proposed mine on mutually agreed commercial terms and government shall be obliged in the same manner as other shareholders to contribute working interest. The fiscal. to make the process more predictable and transparent. applicable to all non diamond mining operations. diamond mining licences are negotiated. progressive and lessens the burden on marginal mines. especially through downstream processing of minerals. Initiatives already taken by the Government towards these objectives includes: The enactment in 1999 of a new mining code that streamlines licensing and enhances security of tenure. and environmental obligations that relate to international best practice. Energy and Water Resources (MMEWR). between Government and the applicant covering all technical. • The abolition of the government’s right to a fifteen per cent free equity participation in all new mining projects. A downward revision of royalty rates payable on the sale of all minerals or mineral products from five per cent to three per cent.opportunities for linkages to the rest of the economy to expand value-added activities. which remain at ten per cent and five per cent respectively The introduction of new variable rate income tax formula. with the exception of precious stones and precious metals. allowing an investor that has completed an exploration programme and confirmed the discovery of a • • • • . in good faith. Investment in new facilities for storing and inspection of technical data on mineral prospectively. The reform of procedures within the Ministry of Minerals. diamond being strategic mineral to the economy of Botswana . The reduction of the fiscal burden on marginally economic mines. beneficial and timely manner. a legislated fiscal regime that is stable. that the mineral resources of the republic are investigated and exploited in the most efficient. including samples and cores. and The development of a fully-integrated National Integrated Geo-Science Information System (NIGIS) for titles and data management. renewal and transfer of mineral licenses have been simplified. all mineral rights in Botswana are vested in the state and it is the Minister of Minerals. The mining codes.
(a subsidiary of LionOre Mining International Ltd. in order of value. and gold.637 metric tons (t) of nickel-copper-cobalt matte. soda ash. of Botswana processed copper-nickel concentrate from the company’s Selebi-Phikwe Mine. South Africa. and soda ash production also has held traditionally significant. about $36 million. of which diamond accounted for $3. mining accounted for about 38% of Botswana’s real gross domestic product (GDP). Mineral exports. the smelter operated by BCL Ltd. Most of Botswana’s diamond production was of gem quality. In 2005. the nominal value of minerals produced in Botswana exceeded that of 2004 by about 20% in terms of the United States (U. should prevailing market conditions make immediate exploitation of the deposit Mining industry of Botswana The mineral industry of Botswana has dominated the national economy since the early 1990s.28 billion.379 square kilometers in southern Africa and is bordered by Namibia. roles in the national economy. about $65 million. and more than 50% of Government revenues were derived from mining and mineral-processing activity. Diamond has been the leading component of the mineral sector since large-scale diamond production began 25 years ago.66 billion.mineral deposit to retain rights over it for renewable periods. The provisional value of imports in 2005 was $3. copper-nickel matte. and Zimbabwe.) dollar.S. gold. Centametall and Falconbridge shipped the nickel matte to the . During 2005. which was operated by Tati Nickel Mining Co. Copper. Commodities Copper and Nickel In eastern Botswana. of Barbados. which resulted in the country’s position as the world’s leading producer of diamond by value. Most merchandise trade was shipped via rail or truck through South Africa. The total value of exports in 2005 was about $4. Much of the increase was attributed to higher international mineral prices. Trade Botswana encompasses an area of 600. In 2005. the BCL smelter produced 68. copper and nickel matte.3 billion. BCL also toll-smelted concentrate from the Phoenix open pit mine. Under an agreement signed in 2001 by Centametall AG of Switzerland and Falconbridge International Ltd. accounted for most of the increase. Diamond. about $461 million. about 200 kilometers (km) south of Francistown. though smaller. nickel. represented 83% of total merchandise exports. and gold. of Canada).
At the Mupane . which was a joint venture of Albidon and Gallery Gold Ltd. and the adjacent Matsitama licenses. Discovery Nickel acquired seven prospecting licenses in northwest Botswana that formed the Maun copper project.’s Activox process. Several copper and nickel exploration projects were underway as of 2005. Tau Mining Botswana (Pty. African Copper proposed to begin a 10. In 2005. WMC Resources Exploration Pty. Gold Mupane Gold (a subsidiary of Gallery Gold) operated the Mupane Mine. The study was expected to be completed in mid-2006.000 t/yr. the oxide zone of the Tholo pit. In 2005. of Australia was acquired by the BHP Billiton Group in 2005. Ltd. the Botswana Railways. which was located about 130 km northwest of Francistown.Falconbridge Nikkelverk. which was located about 30 km southwest of Francistown. were expected to be exhausted by 2011 or 2012. The BCL operation accounted for about 60% of Botswana’s industrial sector’s total energy consumption. Discovery Nickel Ltd. [a subsidiary of African Platinum plc (Afplats) of the United Kingdom] completed a preliminary evaluation of its Molopo Farms prospect. and the Lentswe prospects.) Ltd. the Government continued to evaluate proposals to sustain the town of Selebi-Phikwe after the closure of the mine and to minimize the potential negative impact of the closure on operations of the BCL smelter. continued its exploration drilling on the Northeast Botswana Brownfields nickel project. In 2005. The reserves at the Selebi-Phikwe Mine. which included the Dikoloti. and the Morupule Colliery. which was located about 175 km west of Gaborone. the Dikoloti North.’s Eiffel Flats refinery in Zimbabwe. African Copper successfully completed a feasibility study of an open pit. Because of higher priority projects in southern Africa. African Copper plc continued its evaluation of the Dukwe copper project. The output of copper-nickel matte from the BCL smelter traditionally has exceeded the smelter’s 40. Because the BCL smelter might shut down with the closure of the Selebi-Phikwe Mine. The WMC/BHP Billiton joint venture with Albidon Ltd. after mid-year. mapping. often by more than 30%. heap leach. In 2002. LionOre had initiated in 2003 a pilot plant project to evaluate the recovery of copper and nickel from the Phoenix Mine by using Western Minerals Technology Pty. BCL and Falconbridge agreed to extend to 2015 the tolling agreement under which BCL-mined nickel matte was refined in Norway. and soil sampling on its Selebi-Phikwe nickel project. Activity on the Tati nickel project. of Australia. however. of Australia conducted airborne and ground electromagnetic surveys. the Kima. In 2005. In 2005. matte output exceeded the smelter’s new design capacity. Despite the adverse effect of cyclical metals prices during the past two decades and the looming closure of the Selebi-Phikwe Mine. Ltd.000-meter infill drill program at Matsitama in 2006. In 2005. included the completion of a reconnaissance drilling program on the Kismet and the Tekwane nickel prospects.000-metric-ton-per-year (t/yr) design capacity. the design capacity of BCL smelter recently was expanded to 60. ore was sourced from the oxide and transition zones of the Tau open pit and. a feasibility study of an Activox plant with an output capacity of 25. Afplats decided to divest its interest in the Molopo Farms prospect. the Botswana Power Corporation.000 t/yr of nickel was underway. and solvent extraction/electrowinning operation to process the oxidized ore at Dukwe and started a feasibility study of the underground development of the sulfide zone at Dukwe. AS refinery in Norway and RioZim Ltd.
 Diamond Debswana (a 50-50 joint partnership of De Beers Centenary AG and the Government) accounted for all diamond production in Botswana from its four mines. which was a 7% decline compared with 2004.256 kg) from the 2-year-old Damtshaa Mine. which was a 6% increase compared with 2004. Record coal sales in 2005 were 967.2 million metric tons (Mt) of ore to yield 31.600. At yearend IAMGOLD Corp. which was a joint venture between De Beers (51%) and African Diamonds plc (49%). . In 2005. and Trivalence Mining Corp..097.242 t. the Golden Eagle. Gallery Gold continued exploration of other gold occurrences near the Mupane facility.) Ltd.) Ltd. DiamonEx Ltd.900. which destroyed a loading shovel. (a subsidiary of Tsodilo Resources Ltd. Local marketing of domestically produced gemstones was expected to help the local diamond cutting and polishing companies. Botswana. and upgraded the oxygen plant. and Rio Tinto Mining and Exploration Ltd. Debswana continued its recovery from the labor unrest that had resulted in a 2-week strike in 2004.plant.278 carats (49. which is located about 175 km south of Francistown. Active exploration operations included those of Boteti Exploration (Pty. of the Channel Islands acquired Kalahari Diamond Ltd. Coal Debswana operated the Morupule Colliery at Palapye. the Lady Mary 2. and the Vumba lease. Motapa Diamonds Inc.) Ltd. these included the Jim’s Luck prospect.). which was a 14% increase compared with 2004. De Beers and the Government agreed that some of De Beer’s Diamond Trading Company’s operations would move from London. and Petra Diamonds Ltd.000 carats (219 kg) from the 20-year-old Letlhakane Mine. and Stornoway Diamond Corp. from 1998 to 2001. which was an 8% increase compared with the total in 2004. 15.000 carats (29. United Kingdom. installed a flotation plant to handle sulfide and transition zone gold ore. the Maitengwe lease. and the Map Nora prospects on the Sashe license. Gcwihaba Resources (Pty. of Canada proposed to acquire Gallery Gold and Gallery Gold’s Botswana operations..L.000 carats (6. Mupane Gold commissioned a ball mill.) Ltd. to Gaborone. and 246. which was a 27% decline from that of 2004. Newdico (Pty. of Australia started a reevaluation of the Martin’s Drift prospect. Tawana Resources N.800 kg) from the 34-year-old Orapa Mine.890. Debswana treated about 31. In addition. The production decline at Orapa was attributed to the loss of a haul road because of a ramp failure and a fire. which was a 5-kimberlite deposit that had been trial mined by Tswapong Mining Co.. (BPC). and the joint ventures of De Beers and Firestone Diamonds plc. the Ratomo and the Signal Hill prospects in the Tati Belt.380 kg). which was an weight increase of more than 2% compared with 2004. and its Botswana-based subsidiary Sekaka Diamonds (Pty. which was a joint venture of Tsodilo (81%) and the Trans Hex Group (19%).000 carats (3. Debswana’s diamond production included 148. A coal washing plant was under construction. Much of the company’s coal production was sold to the adjacent Morupule Power Station (MPS) of Botswana Power Corp.. Numerous other companies were exploring for diamond in Botswana. 1..100 kg) from the 23-year-old Jwaneng Mine. Helio Resources Corp.
and political stability are expected to continue to make Botswana a foreign mineral investment magnet.. the Geological Survey of Botwsana. of South Africa. Energy. and Water Resources for the development of a 1. the Geological Survey of the Bechuanaland Protectorate. Coal Investment Corp. Copper.In 2005. According to the report. Strong labour relations. and the perception of rampant Human Immunodeficiency Virus/Acquired Immune Deficiency Syndrome (HIV/AIDS) epidemic also limit the nation’s attractiveness to investment by foreign manufacturers. In 2005. nickel. which included AMAX Exploration Inc. proceeded with a feasibility study of the Mmamabula license. Meepong Resources (Pty) Ltd. The country’s favorable geologic environment. and the U. Outlook International interest in exploration for diamond and base and precious metals is expected to continue. of the United States to provide financial advisory assistance to the Botswana Ministry of Minerals. The Government encourages mineral value-added processing. Trade and Development Agency awarded a contract to Delphos International. Mmamabula previously had been explored extensively by a number of organizations. Revenues from diamond operations are expected to continue to be the mainstay of the country’s economy for the foreseeable future.S. although Debswana has scheduled lower production volumes. the coal division of British Petroleum Ltd. Given the country’s extensive coal resources and projected regional power demand. low tax rates.) Ltd. CIC’s local subsidiary. Mmamabula’s inland location and lack of process water had thwarted the prospect’s development as a coal export project in the early 1980s. High fuel costs would continue to affect the cost of transportation of Botswana’s imports and exports adversely. of Botswana entered into a joint venture to reevaluate the Mmamabula coal project. Botswana has the potential to develop and support a small-scale coal-bed methane industry and additional coal-fueled electricity-generating plants that could supply power to the South African Power Pool through its land lines to South Africa. and Shell Coal Botswana Ltd.200-megawatt coal-fired powerplant at Mmamabula. gold. impressive taxation laws and adherence to safety procedures propelled Botswana to the 14th spot in the 2011 mining survey assessed by the Canadian based Fraser Institute. Botswana’s achieved a score of 74 in this . (CIC) of the British Virgin Islands and Meepong Investments (Pty. of the United Kingdom. and soda ash production and processing also are expected to continue to be notable factors in the country’s economy. Charbonnages de France International Botswana. but the paucity of water in landlocked Botswana has deterred large-scale industrial development. mineral investment climate. the cost of transportation to ports in South Africa. The country’s small domestic market. of the United States. Ltd. Anglo American Corp.
The former PS admits that a number of gaps need to be addressed. infrastracture and regulatory efficiencies. Among the conclusions in this year’s report is that there is growing optimism a post-economic downturn return to significant growth in the mineral sector globally.” said former Permanent Secretary (PS) in the Ministry of Minerals Energy and Water Resources.5 last year. followed by the US state of Nevada and the Canadian Province of Saskatchewan captured the top three positions. The prestigious survey released in time for the world largest mining conference in Toronto this week ranks mining jurisdictions based on a number of policy factors such as labour laws. Industry players were quick to praise the survey findings saying the improved score restores Botswana to its previous highpoint of 2007/08. “Government tried its part during recession to help the mining industry. “The tenure has also been introduced.” he said. Globally the Canadian Province of Alberta. placing it in 14th position among all the jurisdictions and 7th among the nations surveyed. Dr. which is likely to further favour Botswana and other jurisdictions which have put in place strong frameworks for attracting investment into the sector. up from 66. Akolang Tombale. adding that the Mines and Minerals Act was reviewed with the help of stakeholders in 1999. skills.year’s survey. Tombale observed. even though government did not bail out miners “Our various legislation has been harmonized. Apart from the historic economic downturn. In addition to Botswana. it is predicted that the anticipated upturn should benefit other notably improved African performers such as Namibia. The mining industry is on an evolution and there is room for improvement. Dr. Botswana mining has . Mali and Burkina Faso.” he said. “Now it is not the case. political stability.” he said. that is just before the global recession. security. This was a positive development. explaining that previously miners lost “everything” when their exploration license expired.
Botswana continues to perform strongly. Survey results thus represent the opinions of a wide range of executives and exploration managers in mining and mining consulting companies operating around the world.not been rocked by controversies. Namibia is also made good progress in this year’s survey. the DRC. moving up to 57. DRC (Congo) continues its decline down to 7. Morupule Colliery reported zero cases of accidents in 2009/10. Since many regions around the world have attractive geology and .8. Canada. the Institute has surveyed mining and exploration companies to assess how mineral endowments and public policy factors such as taxation and regulation affect exploration investment. “The African average went down to 40. South Africa. However.9 from 49. Its score went up to 74 this year from 66. while Zimbabwean prospects have shown modest signs of recovery from their previous near collapse.8 from 18.9 last year. Tanzania and Zambia have experienced declined performance in recent years (in ranking). By contrast.2 last year. The idea to survey mining companies about how government policies and mineral potential affect new exploration investment came from a Fraser Institute conference on mining held in Vancouver. signaling that the mine ensured that safety became a priority.5 last year. The comments and feedback from the conference showed that the mining industry was dissatisfied with government policies that deterred exploration investment.” Since 1997. in the fall of 1996. The latest Debswana Annual Report show that its subsidiary mine. The Survey authors observed that Africa’s average score has not improved in the last 4 years. except disappointing reports late last year that South Africa will not commit to purchasing electricity from CIC Energy’s ambitious Mmamabula Energy Project.5 from 41. This drop likely reflects the uncertainty created by the nationalization and revision of contracts by the Kabila government.
and in which areas certain jurisdictions need to improve. Debswana Diamond Company shutdown its operations from 25 February 2009 to 14 April 2009 due to less demand for rough diamonds in the market. Jwaneng. in 2003. and the P225 million ($42. Botswana ?8 Key Data Debswana is the world's leading producer of gem diamonds. many conference participants expressed the view that it was easier to explore in jurisdictions with attractive policies than to fight for better policies elsewhere. The company had an overall workforce of about 5. In 1989-1999 the P1. which is 50km from Orapa. Damtshaa mine was officially opened in October 2003. the Orapa diamond mine. Following detailed exploration by De Beers in the 1960s.137 at the Orapa and Letlhakane operations. was discovered in 1975 and became operational in August 1982. It was fully operational in August 1982. a 100% subsidiary of DB Investments/De Beers SA in Luxembourg.34bn) Orapa 2000 project was doubled in capacity. began production in July 1971. in 1981-82. and a total of 3.16m) Damtshaa.competitive policies. which is 20km east of Orapa and is managed from there. Debswana Diamond Mines. The Botswana Government has a 15% interest in DB Investments which it took over from Debswana. contributing about 30% of world output by value from four mines. Debswana is a 50:50 partnership between the Botswana Government and Swiss-based De Beers Centenary. in 1975. The Fraser Institute thus launched the survey to examine which jurisdictions provide the most favorable business climates for the industry.150 at Jwaneng.6bn ($0. and given the increasing opportunities to pursue business ventures globally. 2. 120km west of the capital city. located about 240km west of Francistown. Production at the Damtshaa mine and . as of 2003. Gaborone. Debswana Diamond Company Ltd opened three more open pits: Letlhakane.500: 180 at Damtshaa. Since then.
has less than 10% basalt. includes hypabyssal kimberlite and TKB. B/K9 has a sub-outcrop area of 11. LM2 (Letlhakane Mine 2) has a basalt content ranging from 5% to 80% while LM1. has a suboutcrop area of 3. In 2004. Debswana Diamond Company received approval from the Government of Botswana and De Beers in November 2009 to begin the expansion of Jwaneng mine for extracting additional reserves. found in the northern half of the pipe. They are filled with craterfacies material to a depth of 600m.Orapa No. and Jwaneng has a Gemcom integrated mine production and management system. either electric where grid power is available or diesel / hydraulic where it is not. and are older than most kimberlites in southern Africa. wheeled loaders. and contributes 88% of the new mine's output. "In 2005. Current mining levels are contained within the crater-facies units. diatreme and hypabyssal) were identified. 800m northwest of B/K9. The operations at the Jwaneng. the open pits are medium. dozers. . The company does not publish information about its reserves.5ha B/K1. mining revealed the existence of a fourth pipe. Truck dispatch is by computer-based systems. Debswana recovered a third successive record amount of diamond.4ha. three different distinct episodes of intrusion are currently recognised in the D/K1 kimberlite.2ha. The 5. which was actually the first kimberlite discovered in the Orapa / Letlhakane province. The project was launched in December 2010 and extends the life of the mine out to 2025. At Letlhakane.to very large-scale operations: Orapa extracts 20Mtpa of ore and 40Mtpa of waste. the dominant infill reworked volcaniclastic kimberlite. but each pipe exhibits a distinct geology and diamond grade signature. They use rotary drills and large shovels. The B/K12 pipe. The kimberlite covers 118ha at surface. Geology and reserves The AK1 kimberlite at Orapa intruded Archaean and Karoo Supergroup strata some 93 million years ago. There are four pipes at Damtshaa. The expansion contract is also known as Cut 8 and requires removal of 700Mt of waste at the mine to recover 78Mt of diamond bearing ore. Orapa and Letlhakane mines were recommenced on 15 April 2009. and a maximum diameter of just over 200m with sedimentary crater facies infill to at least 90m depth. The B/K15 kimberlite can generally be described as a diatreme-facies TKB. Mining Working a seven-day week. Debswana Diamond awarded a $450m EPCM contract to Fluor Corporation in March 2010 to carry out the Jwaneng's Cut 8 expansion project. despite a major slope failure.2 plant was initially ceased until the end of 2009 but was later extended until 2010 due to incertitude in the market." The kimberlite pipes at Jwaneng intruded shales of the Transvaal Supergroup about 250 million years ago. but comprises two individual intrusions that coalesce near the surface. partly comprises tuffisitic kimberlite breccia (TKB). Rocks from all three facies (crater. and a variety of Caterpillar and Komatsu haul trucks ranging from 85st capacity to 240st capacity Caterpillar 793Cs used at Jwaneng. resulting in the formation of two ore types.
The Jwaneng CARP is part of the Aquarium project. Letlhakane mine extracted 1. pneumo-drier conveying systems simultaneously transport. and that from Jwaneng to a similar facility on site. The concentrate from Orapa. Following secondary crushing. especially the materials-handling systems. drilling and blasting. despite a major slope failure and the loss of a loading shovel by fire at Orapa. Majwe will also render services such as mine scheduling. Jwaneng produced 11.2Mct of saleable diamonds from 3. Production In 2005. Letlhakane and Damtshaa goes to the multi-storey Completely Automated Recovery Plant (CARP) at Orapa. For example. Processing Debswana introduced in-pit crushing at Jwaneng in the mid-1990s.3m contract by Debswana Diamond in February 2006 to increase the processing capacity at the Damtshaa mine from 200 tonnes per hour (tph) to 400tph. Production at the Orapa mine in 2010 was 9.528Mct of diamonds. .2Mct in 2003. Bateman Engineering was awarded an R84. The Aquarium project was De Beers' first fully hands-off recovery and sorting facility.89 million carat tonnes (Mct) compared with 31. dense-medium cyclones separate 99% of the waste from the diamonds.3mct and Jwaneng 15. Tailings from this process are recrushed and recycled.Majwe (a joint venture between Leighton International and Basil Read and Bothakga Burrow) was awarded a five-year. dry and protect particulate materials.12Mct in 2004 and 30. $580m contract by Debswana Diamond in May 2011 to remove 400Mt of overburden at Jwaneng mine as part of the Cut 8 contract. truck and shovel waste removal as well as limited ore mining to Jwaneng mine. Under the contract. Security is a key feature of plant design. 31.6mct. Orapa. utilising X-ray and laser technology. Debswana recovered a third successive record amount of diamond. which reached full capacity during 2003 and added the Fully Integrated Sort House to handle the diamonds recovered by both CARPs. Letlhakane and Damtshaa contributed 16.3Mt of ore in 2010.5Mct of saleable diamonds in 2010.
jewellery manufacturing. Canada’s Lucara Diamonds (part of the Lundin group) and Australia’s Gem Diamonds. but the long-term intention is to avoid over-supplying the global market. the BCL copper-nickel mine. The latter. with 16 polishing firms now operating. thanks to higher prices that have stimulated exploration and development of copper. nickel and zinc.Mining Botswana’s ever-deeper potential Diamond mining is the economy’s mainstay. its final sorting process for boxes of uncut diamonds sold to its regular customers and has yet to set a new date for the transfer. low direct tax rates and absence of compulsory minimum local equity requirements has kept Botswana as Sub Saharan Africa’s most attractive mining investment target. from London to Gaborone. but base metal and energy mineral developments are attracting new investment too A combination of still-untapped resources. Australia’s Discovery Metals is on schedule to start . Canada’s Fraser Institute ranked Botswana 14th out of 79 jurisdictions. Botswana Ash and Morupule Colliery. as well as 1st in Africa by mining policy potential and 7th in Africa by mineral potential. During the economic slump. Downstream diamond-related activities – cutting and polishing. Investment is continuing on existing mines at Jwaneng and Orapa. Compared to diamond output worth $3. In its 2010/11 ‘Annual Survey of Mining Companies’. which also owns Lesotho’s highly profitable Letseng mine. The government is entitled to acquire 15 percent of any new mining venture (50 percent in the case of diamonds).2 billion. is investing $85 million in the Central Kalahari Game Reserve for production of 100. Debswana is expanding production of rough diamonds from 22 million carats in 2010 to 25 million in 2011 and 30 million in 2012. although many of them are finding it hard to achieve commercial viability because of squeezed operating margins. These high rankings are unlikely to be significantly affected by the cabinet’s May 2011 decision to establish a mining investment company to manage existing government shareholdings in Debswana Diamond Company (50:50 government/ De Beers). Other new gemstone investors are Australia’s Firestone Diamonds. but this provision is currently not enforced.000 carats a year. while the small Damtshaa mine is due to reopen in 2012 after a three-year shutdown. De Beers postponed plans to move. Botswana’s other minerals did well to reach a value of $770 million in 2010. and support services – take place at Gaborone’s new Diamond Technology Park.
4.1). Instead. Canada’s CIC Energy has down-scaled previous plans for a largescale coal-to-power project at Mmamabula. Botswana also eclipsed many more developed jurisdictions such as several states in the United States. the existing station has only a 120 MW capacity and South Africa’s Eskom has had to cut back its usual crossborder supplies because of inadequate output at home. with an index score of 64. As large-scale imports of coal-fired electricity are ruled out under South Africa’s recently finalised 20-year integrated resource plan for electricity. Botswana has once again been named the foremost preferred destination for mining and mineral investment in Africa. The Botswana and Namibia governments are jointly backing a feasibility study on a Trans-Kalahari railway line which would become the permanent link to a proposed coal export terminal at Walvis Bay in Namibia. power shortages are likely to continue until the new 600 MW Morupule B power station is completed at the end of 2012. Ghana (51. Higher international coal prices and the need to expand domestic power generation capacity have spurred exploration of Botswana’s estimated 20 billion tonnes of coal resources. all-export operation. 2009 thus marks the fourth year in a row Botswana has been ranked the preferred mining destination in Africa. All respondents who commented on Botswana were reported to have said that Botswana has the most favourable policies towards mining. several Australian provinces. was ahead of other African states such as Mali (53.3) and Burkina Faso (45. However.9. South Africa was ranked 10th in Africa with 40. Botswana was ranked 18th overall in the world. Namibia (52.5). starting from the 2005/06 survey.6). Botswana ranked number 1 in Africa for mining investment According to the recently released Fraser Institute survey. The 2009 Fraser Institute Survey of Mining Companies is reported to have involved more that 3000 mining entities representing 71 jurisdictions on every continent except the Antarctica. The index score is extracted from . most European countries and most Latin American countries. CIC Energy – which is being taken over by India’s JSW Energy – is prioritising thermal coal exports alongside a much smaller 300 MW power plant for domestic supply only. Botswana.commissioning its Boseto open-cast copper mine in the first half of 2012 and is evaluating a nickel prospect near Selibi-Phikwe. Coal development could one day feed a 20 million tonnes-per-year. coming behind global leaders mainly concentrated in North America.
Survey results represent the opinions of executives and exploration managers in mining and mining consultancy companies operating around the world. which includes Diamond cutting quality and scale of maps. has conducted the mining survey since 1997 involving increasing number of respondents and jurisdictions. environmental regulations. This ranking is expected to improve in years to come as the Department of Geological Survey (DGS) in Lobatse is currently in partnership with the Japan Oil. behind South Africa. One of the respondents in the Survey said: "Botswana is the shining star of governance and lack of corruption in Africa" The Fraser Institute.several criteria that the survey looks at. security. It is reported that respondents were asked to comment on individual countries' performances in terms of criteria such as current mineral potential. political stability. which includes the threat of terrorism. a Canadian research organization. Second in this category was Namibia. Gas and Metals Corporation (JOGMEC) in a remote sensing project. supply of labour. Botswana was ranked second in Africa. mining companies throughout the world ranked Botswana first in Africa in terms of political stability and labour regulations/employment agreements. ease of access to information and others. labour regulations. for its geological database. taxation and others. . According to the survey. availability of infrastructure. geological database. Batswana geologists are undergoing training from our Japanese counter parts in remote sensing -the technology of detecting the presence of minerals using satellites in space. Botswana was also ranked highly in terms of taxation and environmental regulations. criminal attacks or guerrilla groups disrupting mining activities. Under the five year project. The country was also ranked first in Africa in terms of security.
and only a small percentage of the land is under cultivation. The government is attempting to diversify the economy by building up other sectors. transportation equipment. Botswana exports meat and textiles. Mining has become the country's economic mainstay since independence. although their numbers have diminished. Sorghum. because of its landlocked position. Botswana. petroleum products. and peanuts. located just north of South Africa. sulfur. The only known minerals in the country at the time of independence were manganese and some gold and asbestos. coal. and potash. fuel. soda ash. Botswana's diamond mines collectively make up one of the largest diamond reserves in the world. millet. remains heavily dependent on South Africa. and beans are the principal subsistence crops. nickel. The country's water shortage and consequent lack of sufficient irrigation facilities have hampered agriculture. and platinum have also been found. high unemployment remains a problem. Botswana is a landlocked country in southern Africa. corn. paper.957 square kilometers (232. Imports include foodstuffs. textiles.Economy Cattle raising and the export of beef and other cattle products and subsistence farming are the chief agricultural activities. There are rail and road links with South Africa and Zimbabwe. Although Botswana's mineral wealth has made it one of the wealthiest nations of S Africa. The vast coal deposits are also being worked. The revenue earned from diamonds has underwritten national health-care and educational programs. Many Botswanans work in South Africa's mines. machinery. with stones mined by the government and a South African mining concern. Botswana has a total area of 602. and cotton are the main cash crops. making it about . including safari-based tourism and financial services. as well as salt. Deposits of antimony. and now drives Botswana's economy. its chief trade partners.802 square miles). but significant diamond. electrical goods. Besides minerals. which provides port facilities. and copper deposits have since been found. sunflowers. plutonium. wood. and metal.
The area is expected to yield natural gas and crude oil. nickel. the country is also rich in copper. and gold. at 2. social mobility. Central Botswana and the Kalahari Desert are perhaps the most likely sources of new discoveries. and the death rate was 22. The majority of Botswana's people live in the southeast of the country. producing additional income for the country as well as providing investment capital for new industries.000 people. reflecting one of the highest rates in the world. of which the Tswana tribes constitute 60 percent.000 and is located in the southeast of the country. The Batswanans make up 95 percent of the population. At independence in 1966 only 3 percent of the population lived in urban areas. has a population of about 135. . Though diamonds dominate Botswana's mining industry. and Jwaneng. The rapid spread of AIDS in Botswana is a major reason that population growth is low.76 percent. at Orapa. Mining provides 86 percent of the country's export earnings. These are all owned and operated by Debswana. and the fact that Botswana lies on major trucking routes between South Africa and the north have contributed to the spread of the disease. Zimbabwe to the east. the minerals sector continues to dominate the economy. and its neighbors are Namibia to the west. AIDS-related health and safety information is openly available. Botswana also has sizable coal deposits. or Bushmen) number 60. Fortunately. However. but cultural practices. Khwe.4 percent of the formal labor force.7 people per square mile). almost on the border with South Africa. Botswana's population was estimated at 1. Many of Botswana's mineral resources have not yet been discovered.493 miles). Though Botswana has tried to diversify its economy away from mining.011 kilometers (2. The country has 3 main diamond mines. The capital. but by 2000 this figure had risen to over 65 percent. Lethlakane. most of this from diamond sales.08 deaths per 1. The length of Botswana's border is 4.000. but are presumed to exist given the country's geology. and only 4 percent had lived over 64 years of age in 2000.6 people per square kilometer (6. Approximately 41 percent of the population was less than 15 years old. an equal joint venture between the South African diamond mining company De Beers and the Botswana government. The San people (also known as Basarwa.63 births per 1. Population density is low due to the harsh climate of the Kalahari desert. growing at the slow rate of . Gaborone. This has caused a great number of social problems including labor shortages and a health care crisis. The birth rate was 29. the Botswana government saved and invested a portion of the country's mineral revenues. It is estimated that 25-36 percent of the population is infected with the virus.000 people.58 million in July 2000. Botswana is one of the few countries in sub-Saharan Africa with a fairly homogeneous ethnic background. INDUSTRY MINING. POPULATION. The population was expected to reach 2 million by 2030.the same size as the state of Texas. and 50 percent of the total population lives within 100 kilometers (62 miles) of Gaborone. where the desert gives way to the more fertile land of the Okavango river delta and swamp. and South Africa to the south. the mining sector employs only about 4. 55 percent was 15-64 years old.
CHIEF IMPORTS: Foodstuffs. and 100-pula denominations.). and petroleum products. vehicles. MONETARY UNIT: Pula.). machinery and transport equipment. food. (Pula means "rain" and "greetings.05 billion (1999 est. and 50 thebe and 1 and 2 pula.") Notes come in 5-. . and beer.36 billion (1999 est. The Botswanan government would like more manufacturing companies to locate in the country. DEPENDENCIES Botswana has no territories or colonies. therefore it is focusing on the natural resources that may be used in manufacturing operations. GROSS DOMESTIC PRODUCT: US$5. and copper and nickel. 20-. Other established manufacturing products include cement. 1999 est. 1 pula equals 100 thebe. 10-. Botswana exports most of its natural resources in raw form. copper. and meat. —Michael Pretes Rory Eames CAPITAL: Gaborone. 5. Such resources include soda ash.MANUFACTURING.5 percent of the country's labor force. textiles. nickel. which is used to produce detergents and fertilizers. BALANCE OF TRADE: Exports: US$2.). Manufacturing contributes only 5 percent of GDP and employs only 8. 10. 50-. with minimum processing. and coins come in denominations of 1. which are used in electrical components. Imports: US$2. CHIEF EXPORTS: Diamonds. 25.7 billion (purchasing power parity. In 1997 the Botswana Export Development Investment Authority was established to encourage the export of goods manufactured in Botswana.
and middle-income countries are becoming increasingly vulnerable to the “resource curse. Burkina Faso. which it explains as “the paradoxical situation in which resource-rich countries suffer from stagnant growth or even economic contraction.” “Mineral-dependent countries run the risk of economic problems. Papua New Guinea and Tanzania.” The three countries most vulnerable to the resource curse are Botswana. as well as institutional problems such as corruption and weak public service delivery. the greater the dependence. Dan Haglund. .” The study charted the mineral dependence of nearly 100 countries since 1996 to assess their vulnerability to the resource curse. Lao PDR. “Moreover. such as over-valued exchange rates. Mali. at a time when global economic growth increasingly depends on these countries. Zambia and the DRC.and middle-income countries. Ghana. Mauritania. DRC and Zambia most vulnerable to ‘resource curse’ Oxford Policy Management published a new report explaining how low. Mongolia.” says the report’s author. which can make other industries’ exports uncompetitive. Guyana. This can create political instability and lower growth in low. and corruption because of sudden large ‘windfalls’ of cash. the greater the vulnerability to a fall in commodity prices or demand for minerals during a global economic downturn. Others include Bolivia.Botswana.
The degree of mineral dependence has increased substantially since commodity prices started to rise steeply after 2004 says the report. Africa's oldest and most stable democracy. . replaces the marketing agreement between De Beers and the government of Botswana which lapsed in January.On Friday De Beers and the government of Botswana concluded a milestone agreement for transferring all sorting and marketing activities to Gaborone from London." said the source. It's the only way to avoid eventual nationalisation.Among its key findings.a crucial contract for both as Botswana produces about two-thirds of De Beers’s diamonds. For Botswana the most important change is that it will in future have the right to sell 10% of the country’s diamond production. The agreement signed in Gaborone on Friday by De Beers chairperson Nicky Oppenheimer and Botswana's Dr Ponatshego Kedikilwe. Mines: Botswana shows SA how Johannesburg . "This is the route that South Africa will also have to take. which stores all De Beers's unpolished diamonds in London vaults. Energy & Water Affairs.3% in 1996 to 16% in 2010. Minister of Minerals. to 61 countries." a dignitary from the ruling ANC-Cosatu-SACP-alliance said on Friday regarding the agreement. This will certainly take place in SA. The De Beers's Diamond Trading Company (DTC). the study notes that since 1996 the number of countries depending on minerals for over a quarter of export revenues — the World Bank’s definition of export dependence — has increased by one third. About three quarters of all 95 mineral-dependent countries were considered low and middle income. The two parties have been negotiating the agreement’s renewal since last year . will move its entire operation to Botswana before the end of 2013. "It's an inevitable result of the resource-nationalism movement across global mining countries for all possible mineral enrichment to be done as close to the production base as possible. Diamonds are also by far the biggest source of foreign exchange for Botswana. with an average increase of 12.
It sorts and markets these for sightholders in ten sessions.3bn (R9. "In 2010 the DTC made an operating profit of $478m (R3. Debswana." a mining analyst said on Friday. has previously sold all its production to the Diamond Trading Company of Botswana (DTCB) also an equal partnership between De Beers and the country's government. All De Beers's sales to sightholders will in future therefore take place in Botswana instead of London. are held every year. to which some 70 select clients across the globe are invited. This will give Botswana a firm foot in the door towards establishing a vigorous polishing and marketing industry. These sessions. For the 2011 financial year its operating profit is expected to be $1.527bn).5bn). . Tax on this amount has previously been paid in London. The DTCB in turn has sold the entire production to the DTC in London.The DTC "buys" the production of all mines in the De Beers group at market value less 10%. The part disposed of in this way will progressively increase to 15% of Debswana's production. Instead of mining companies being pressurised to enrich part or all of their production. Last year's sales were worth $5. gives it direct access to the diamond market. which will enrich it . The remaining 10% will be delivered to a new state-controlled diamond dealer which will sell it direct to the market. which runs for 10 years. they will have to surrender part of their production to state-controlled companies. the 50-50 partnership company between De Beers and the government of Botswana.whether on their own or in partnership with other companies in the private sector. But the Botswana government’s most important stipulation is that the new agreement. but Botswana will in future collect this revenue.08bn (about R37.6bn). In future DTCB will sell only 90% of its production to the DTC." said the Sake24 source. "That's the recipe that will probably be followed in South Africa and possibly elsewhere in Africa.
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue reading from where you left off, or restart the preview.