Botswana aims to become mining destination of choice

• Policies and programmes to ensure sustainability of the country’s mining industry are being developed

Giving a keynote address at the Botswana Resources Infrastructure Energy Forum (BRIEF) that was held from 16 to 17 May 2022 at Gaborone International Convention Centre, Minister Moagi said through the envisaged policies and programmes, the government aims to position Botswana as a conducive environment for mining to ultimately achieve its goal of being a mining destination of choice.

“To drive the mining sector, the ministry is committed to the development and implementation of fiscal, legal and policy frameworks for mineral exploration and exploitation that are investor-friendly and business-friendly,” he noted.  “In order to achieve some of its objectives, the ministry is conducting research in the field of geoscience, providing specialised geo-scientific services and promoting the search for, and development of, more minerals in Botswana.

“The Botswana Geoscience Institute (BGI), together with the Department of Mines, in collaboration with other key operational institutions, continues to provide the necessary guidance and coordination for achieving economic prosperity.” The minister added that the Botswana Minerals Policy that was adopted by Parliament on 31^st March 2022 will solidify and focus the government’s commitment to plan, develop and manage minerals for the benefit of Batswana and the mining industry by providing guiding principles, taking into account current and emerging issues.

“The Diamond Cutting Amendment Bill and the Precious and Semi-Precious Stones (Protection) Amendment Bill were passed into Acts of Parliament on 16^th August, 2021,” Moagi explained. “Amendment of the Mines and Minerals Act is also in progress.” Noting the numerous projects undertaken to sustain the mining industry, Moagi said the Jwaneng Cut 9 Project, whose mining contract was reviewed in 2020 to switch over from contractor mining to owner operated mining, is progressing well. The project will extend the mine life for Jwaneng to 2035.

“To further extend the life of Jwaneng Mine, feasibility study work on post-Cut 9 Project is ongoing with a focus on underground mining as an option,” he said. “I can only urge all concerned to ensure we do not delay the underground project to avoid potential revenue gaps, come 2035. Orapa Mine Cut 3 project, which is still at feasibility phase, is anticipated to extend the life of mine from 2031 to 2046.” Other noteworthy projects that the minister highlighted included Lucara Botswana’s Karowe Mine that has commenced preparing for transition from open pit mining to underground mining in 2025 and increase its mine life to 2041.

“Morupule Coal Mine, which started development and expansion of its open cast mine, the ‘Motheo Project,’ commenced stripping of the overburden in 2021 and production of coal from the open cast mine is anticipated to start in the second quarter of 2022. Khoemacau Copper Mine, which started production of copper-silver concentrate in July 2021, is continuing to ramp up production, which is expected to reach full capacity in the second quarter of 2022.” Despite the devastating effects of the COVID-19 pandemic on production and sales of minerals, the minister said the mining industry is recovering strongly.

He noted that signs of recovery are mainly due to companies re-arranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures. Minister Moagi said these restrictive measures included social distancing, remote working and closure of commercial activities, which resulted in operational challenges.

BRIEF, which has returned for its 18^th edition after a short hiatus last year due to the COVID-19 pandemic, offered delegates some interesting insights through interactive panel discussions and gave an opportunity of in-person networking between investors, resource and energy professionals, government officials, financiers and other industry related experts.