Govt to continuously review mining laws

CHAKALISA DUBE
Staff Writer | Tuesday August 21, 2012 00:00

Officially opening the new Karowe Diamond Mine here last week, Khama reaffirmed government's desire to continue creating a favourable environment for mines to operate in the country.'Over the years Botswana has improved its mining legislation to address investor concerns, by making its mining legislation transparent and predictable. We will continue to review our legislation in a bid to create a conducive environment for the mines to operate in the country,' he said.

The improvements in legislation, he also noted, were made with the full knowledge of the cycle of patterns that are largely influenced by the global economic activity. Where there are justifiable reasons, the government has accommodated the need of investors by amending procedures relating to setting up a business, he added.Khama also said government is committed to providing high level security for diamonds in the country in a bid to prevent illegal dealings in the precious stones.

'The security of diamonds in the country is paramount and government will continue to spend a considerable amount of resources to prevent illegal diamonds that rob this country of considerable value from its diamonds. In this endeavour government needs the active cooperation and support of Karowe diamond mine employees, local communities, Batswana at large as well as other partners,' he stated.Khama also stated that every citizen in the country should maintain a high sense of vigilance and report any suspicious activity or person to law enforcement authorities.

'If we join hands and work together we can effectively protect our diamonds from falling into the wrong hands,' he said.In another revelation during his address, the President noted that the mine would spend P340 million annually in operating costs; 75 percent of that money will pay for labour, goods and services from local companies while 25 percent will finance imported goods and services. This, he said will empower local companies.'At June 2012 diamond prices, Karowe diamond mine will sell diamonds worth P650 million per annum and pay P140 million to government in royalties and taxes. 'These tax revenues will help government extend services to more Batswana, improving their quality of life,' Khama added.

Toronto Stock Exchange listed company, Lucara, owns Karowe diamonds after buying the mine from African Diamonds two years ago. The chairperson of  Lucara, Lucas Lundin said the development of Karowe Diamond Mine would improve the fortunes of many. This includes employees and their families, suppliers of goods and services and many other Batswana thanks to tax revenues paid by Karowe mine to government.'I am advised that there are a number of kimberlites' prospects in this area and other parts of Botswana offering potential for development along the lines of Karowe model. Lucara Diamond Corp is very keen to explore such opportunities,' he added.Karowe is expected to process 2.5 million tons of ore per annum to recover 400,000 carats in a year over its 15-year life span.