Gov’t reserves 24% mining ownership for citizens
Pauline Dikuelo | Monday October 20, 2025 06:00
The amendments were initially passed by Parliament last year and mark an increase from the 15% government had the right to purchase in new mining operations.
A 24% equity is significant because it gives enough power to protect the minority partners’ interests and to influence key decisions, even without being the majority owner. However, it is below the 24% blocking majority required for making major decisions.
The amendment marks a major shift in Botswana’s mineral governance framework and is intended to increase local participation in a sector that has historically been dominated by foreign investors.
According to the Ministry of Minerals and Energy, the new law is designed to ensure that Batswana derive meaningful economic value from the country’s natural resources.
Previously, the government had the option to acquire up to 15% working interest in new mining projects, but was not compelled to do so.
Under the amended Act, where government does not exercise this option, the mining licence holder will be required to dispose of the 24% stake to citizens or citizen-owned companies.
The provision applies strictly to all new mining licences granted going forward and is seen as a deliberate step towards promoting broad-based citizen economic empowerment.
Government has stated that the policy will encourage local investment partnerships, promote skills transfer and enable greater control and influence by Batswana in the minerals sector. The measure is also expected to stimulate the development of local supply chains and service industries that support mining operations, thereby retaining more value within the domestic economy.
Beyond the ownership requirement, the Act introduces additional governance and compliance reforms intended to strengthen the mining industry. These include conditions for mineral beneficiation within Botswana wherever economically feasible, requirements for mining companies to establish environmental rehabilitation trust funds, and stricter sanctions for illegal mining and regulatory violations.
'Mining companies must now establish an environmental rehabilitation trust fund or secure a financial guarantee from a Botswana-registered bank or a bank approved by the minister,' reads a statement from the ministry.
Officials say these changes are part of a wider strategy to ensure responsible mining, environmental protection and long-term economic sustainability.
The Ministry of Minerals and Energy has indicated that detailed regulations are being drafted to guide implementation and ensure consistent compliance across the industry. Government maintains that Botswana’s mineral wealth must benefit citizens and contribute to inclusive national development, reinforcing the principle that natural resources are a national asset.