Government has proposed to amend the Mines and Minerals law to give preferential treatment to companies registered locally and citizen-owned companies in mineral concession holding.
The Act will also close some gaps in the law which made it easy for mining companies to ship out bulk samples for research purposes in other countries. The Ministry of Minerals said the decision is aimed at boosting the participation of locals and citizen-owned companies in the industry.
According to the draft Bill, the Minerals and Mining Act, section 12 will be amended to provide that mineral concession holders give preference to Botswana citizens, companies incorporated in Botswana as well as companies registered in Botswana, including manufacturing companies in Botswana and for the submission of reports to the Minister, every three months on all activities provided for under section 12 of the Act
Minerals minister, Lefoko Moago is set to present the Bill before Parliament.
The Bill has an additional section that provides for citizen economic empowerment which says in cases where the government does not exercise its option of acquiring a 15 percent stake in a mining company upon granting of a mining license, that company shall be expected to dispose at least 24 percent shares to citizens or citizen owned companies. Another new section also forbids the holder of a mining license from removing a mineral or mineral sample from Botswana for studies, tests, or surveys without the written permission of the Director of Mines.
Citizens who own 100 percent shareholding in companies may apply for a minerals permit which further provides for conditions of the granting of a minerals permit or an industrial mineral permit. The Bill increases the validity of minerals permit from five to 10 years and introduces an application fee for the renewal of a mineral permit. It states that minerals permit of any interest in the minerals permit shall not be transferred, assigned, encumbered or dealt with in any manner without the approval of the minister, irrespective of where the transaction takes place.
The Bill amends section 3 of the Mining and Minerals Act to enhance the powers of the minister to ensure that in the public interest, the needs of Botswana’s economy are met by the mineral resources produced in Botswana before being exported or sold outside Botswana. The draft of the Bill states that clause 5 of the Bill amends section 6 of the Act to provide that no mineral concession shall be granted to an individual who has been a director or shareholder of any company that is in default in term of the Act.
The Bill also introduces a new sub-section that requires the holder of a mineral concession to beneficiate the minerals produced in Botswana as far as it is economically feasible and to the satisfaction of the Minister.
Another new sub-section provides that the holder of a mining license shall not be transferred, assigned, encumbered or dealt with in any manner without the approval of the Minister. The clause further provides that an application for a transfer of a mining license shall be accompanied by an original copy or certified copy of the company resolution of each parties concerned in the transaction.
According to the draft, an application for a mining license or retention license or a renewal thereof shall prepare and submit an environmental impact assessment and the mining license or retention license shall not be granted until the environmental impact assessment is authorised in terms of the Environmental Assessment Act. The clause further provides that financial provision shall be provided by setting up an environmental rehabilitation trust fund or securing a financial guarantee from a Botswana registered bank, any other bank or any financial institution approved by the Minister or any method as may be approved by the minister.
