Botswana to speed up mining licence applications

| Friday September 3, 2010 00:00

Permanent secretary Gabaake Gabaake said in Perth that proposed changes to mining legislation would be effected by the end of 2011.'The new minerals policy objectives will ensure economic benefits for Botswana are maximised from the resource recovery while enabling private investors to earn competitive returns,' he said. 'We take seriously return to investors from projects and we have ensured such investors can repatriate profits so that a competitive environment to stimulate mineral exploration and exploitation ensues.'

Gabaake said Botswana would aim to issue prospecting licences within 60 days of application, mining licences within 30 days and diamond export permits within two days.He explained that the strategy included emphasis mineral beneficiation and downstream activities in Botswana where feasible, and encouraging diversification.

The government was also looking to sell all diamonds produced in Botswana within Botswana. Suppliers are also being encouraged to manufacture mining consumables such as reagents and equipment spares locally.

'The turnaround strategy is working, with the latest Fraser Institute report ranking Botswana as the highest ranking African country for attractiveness of mining policy,' Gabaake said.'Such surveys have highlighted the access to road, power and skilled labour pools as areas of major concern needing addressing.

'As a result, we are now running a budget deficit to bring on stream major projects like the Morupule Colliery expansion and the 600MW Morupule B Power Station to boost electricity supplies.' The deficit also allowed for the construction of three dams to meet water demand, Gabaake added. Feasibility studies on improving rail networks, particularly for mineral projects, were underway.

Botswana saw its 2009 diamond production plummet to 17.7 million carats from 32.6 million carats in 2008 when the global financial crisis hit demand for the gemstones.'A significant improvement in diamond production is expected by the end of 2010 as markets are now recovering,' Gabaake said.

Botswana's 2009 diamonds accounted for 14 percent of world diamond output, commanding 17 percent of the total world diamond production value of $8.6 billion. Gabaake noted that the impact of the downturn was felt at employment levels, with average job levels in the country's mining sector falling to 15,359 last year, 18 percent lower than the sector's 18,820 job capacity in 2008.  (Mining Weekly)