Review of minerals policies underway

Keikantse Lesemela | Thursday March 13, 2014 17:06

 

Botswana’s mineral policy objective is primarily to maximise the national economic benefit from the development of mineral resources. In 1999, the government replaced the old mining code of 1977 with a new mining code. One of the cornerstones of the new and old mining codes is that government does not subscribe to privately owned mineral rights. The new policy attempts to provide a fair balance between the various stakeholders.

Presenting the committee of supply on Tuesday, the Minister of Minerals, Energy and Water Resources, Kitso Mokaila said the first draft report was submitted in October 2013 and the next technical team and client meeting are scheduled for this month.

A review of the Mines and Minerals Act - intended to cater for Coal Bed Methane mining - enforcement of mine closure and rehabilitation fund requirement is at an advanced stage with a draft bill complete and considered by the Ministry. The drafting of the bill as well as public consultations is expected to be completed during the 2014/15 financial year.

Mokaila said the amendment of the Diamond Cutting Act, and the precious and Semi-precious Stones Act are at the final stages and the drafting of the bill is ongoing. “The amendments are aimed at amongst other things, review of penalties and promotion of local beneficiation,” said Mokaila. He explained that the draft bill is aimed at transforming the Department of Geological Survey to Botswana Geoscience Institute with a view to advancing geo-scientific research and knowledge as well as to effectively manage data.

The ministry established a company wholly owned by government called Mineral Development Company Botswana (MDCB), which in the interim is operating as a Special Purpose Vehicle(SPV) to address more urgent issues such as the Government Diamond Valuers (GDV) and the housing of government’s shareholding in De Beers.

“The business case of the fully fledged company is being developed. The SPV board of Directors was appointed in October 2013, eight diamond valuers and an IT statistian have been recruited and started work in January,” said Mokaila. He also highlighted that the process of recruiting trainee citizen GDVs and other support staff is underway. “It is expected that the MDCB will be migrated into a fully-fledged mineral investment company before end of 2014.”

Commenting on the presentation, MP for Selibe Phikwe West Gilson Saleshando said this minerals policy is not showing any progress and it doesn’t indicate fundamental transformation of the economy of Botswana. “This policy cannot transform the economy fundamentally, the state has been failing to transform the economy of this nation a long time ago so they need to be punished for failing to transform the economy.”