The MDCB is the state minerals investment agency and government’s chief policy advisor for the sector.
At present, mineral royalties payable by mines in the country range from three to 10% annually and are levied on the gross market value of production.
MDCB CEO Matome Tsholetsa Malema told a recent media briefing that the agency was advocating for an overhaul in the royalty system.
“If a company is in Botswana, producing concentrate here, treating it and refining it into a finished product here, then give them a lower royalty as an incentive,” he said. “Those who don’t do that increase the royalties. “In that way,, we think it will actually incentivise companies to be able to make sure that they beneficiate in Botswana.”
The MDCB is playing a central role as amendments to the Mines and Minerals Act are finalised. The agency’s advice to government is in line with the broader national priority of value chain development.
One of the key targets for value chain development in mining has been the establishment of copper refining capacity in the country.
Several new copper producers have emerged in the years since the base metals meltdown of 2016, with Khoemacau and Sandfire commissioning operations on the Kalahari Copperbelt, whilst Premium Nickel Resources Botswana is resuscitating BCL Limited’s assets in the north-east. Max Power Limited has also revived African Copper’s former Mowana Mine and renamed it Kopano Copper.
The Botswana Chamber of Mines (BCM) believes that the copper concentrate volumes and resources beneath the ground at various mines could support the establishment of an in-country refinery. BCM CEO, Charles Siwawa, previously told BusinessWeek, that the Chamber was finalising a study into the establishment of a copper refinery in the country.
“The indications are still positive and we are even looking at locations and where the materials will come from, which the study will inform,” he said. “We are not talking about a smelter, but a refinery which is beyond a smelter and will produce 99.9% copper in the country. “We will be able to sell that copper to manufacturers, who include those producing copper cables, household items and others. “The downstream industries and value chain from that will be taken to its logical conclusion.”
