"BMI is choosing to wait until the Q1 09 (first quarter of 2009) reports to carry out a comprehensive review of its mining sector reports in light of the current economic difficulties," BMI said in its Botswana Mining Report Q4 2008. In the report released last week, BMI said Botswana, like many other mining nations, is feeling the impact of the ongoing financial turmoil on global markets and resultant credit crunch.
A recent report by the Pan-African News Agency (PANA) quoted economist Keith Jefferis, who was pessimistic on the near-term outlook for the sector. In particular, Jefferis is concerned as to whether recent positive news from prospecting companies will translate into mining projects being given the green light any time soon, given a combination of global risk aversion and the dramatic falls in commodity prices seen over 2008. Credit Suisse has also said the credit crisis risks delaying around US$50bn in capital expenditure that was expected to fund new and existing mining projects over 2009. The report says despite efforts by the Government to diversify to non-mining sectors, diamond mining as a source of revenue remains the backbone of the economy.
