BOTSWANA'S great mineral wealth decisively refutes the one-time description of its being one of the world's poorest

countries. Despite the slow recovery in the global economy which affected the country's mineral exports, the mineral sector continues to play a leading role in the economy, contributing significantly to export earnings and employment of human resources. The sector is still subject, however, to a continuing quota on its diamond sales, depressed prices for copper and nickel and a weak market for soda ash. With a view to creating a more balanced development, the current National Development Plan 7 puts emphasis on the need to diversify the economy away from the mineral sector. Mineral revenues are invested in viable projects that serve these objectives of diversification and export promotion.

DIAMONDS Botswana's competitive edge in diamonds remains as sharp as ever. While its rapid rate of growth in the past cannot be projected to continue into the future, diamonds will remain a major contributor to both the Gross Domestic Product and government revenues. Diamonds were first discovered in Botswana at Opera in 1967, with additional exploration revealing two smaller kimberlite pipes at Lethakane - the exploration of both pipes was well under way by 1980. Investigations of the feasibility of expanding production at the Orapa mine continue and results of the study are expected in mid-1994. Hand sorting of diamond in a final checking for quality and flaus at Orapa House. The Jwaneng pipe was discovered in 1972, with production at the mine beginning in 1982; construction of additional plant is expected to be fully operational by mid-1995. Sales at Debswana have remained strong due to a combination of factors such as higher carat sales, improved prices of diamonds, and a stronger US dollar compared to the Pula. Over the years new technologies and improvements in operational efficiencies have been effected at Debswana's operations, resulting in an increased recovery of finer diamonds which would otherwise have been lost to tailings. In the past few years diamond cutting and polishing factories have been established in an effort to diversify within the diamond industry and create additional employment opportunities. In addition to the diamond Manufacturing Company established in 1980 and currently employing nearly 70 workers, two more factories were recently opened at Serowe and Molepole. Teemane Diamond Manufacturing Company in Serowe had a staff complement of 241 as the end of 1993, representing an increase of 91 over 1992; this factory is expected to achieve its full complement of 500 in 1995 when it will be fully operational. In 1993 a state-of-the-art diamond cutting and polishing facility, with both automated and manual equipment, was opened in Molepole. Lazare Kaplan Botswana (LKB) is a subsidiary of LAzare Kaplan International, largest manufacturer of diamonds on the United States, with a worldwide distribution network for its ideal cut diamonds and jewelry products. The Government of Botswana, represented on LKB's board of directors, owns 15 percent of the shares. The current total of Botswana employees numbers over 200, with the workforce being trained by a complement of international diamond experts. development and expansion will be

gradual, with economic viability remaining paramount.

No. 1 shaft at BCL copper-nickel mine at Selshi-Phikwe. COPPER-NICKEL Approximately 95 million tonnes of copper-nickel ore deposits exist in the Selebi-Phikwe area, occurring in two ore bodies and having an average metal content of 0,68 percent nickel and 0,71 copper. These deposits are mined by BCL Limited, a mining operation which produces copper-nickel matte from three shafts for export. As at the end of 1993, the company employed about 4600 citizens and 245 expatriates, making it the single largest private sector employer in the country, with mining plans extending to the year 2005 and exploration ongoing to extend this date even further. Ore reserves at that period stood at approximately 93 million tonnes. The Selkirk mine near Francistown is operated by Tali Nickel Mining, a company which continues production of copper-nickel for processing at BCL, while trial mining at a third pit at the Phoenix deposit adjacent to Selkirk was conducted in 1992/93 to enable investors to prepare a feasibility study, including design of an optimum mining method. Improved international metal markets and the development of a rail to Sua Pan have also revived interest in the old Bushmen mine and the Matsitama deposits, with a mining lease for the latter issued to Thakadu Mining. SODA ASH Total annual world consumption of this alkaline chemical basic to everyday life total some 30 million tons, a figure expected to increase to more than 40 million tons by the turn of the century. Approximately two-thirds of the World demand for soda ash is one produced chemically, using salt and lime as raw materials. In southern Africa approximately 35 percent of soda ash is used in glass manufacture, 30 percent in metallurgical applications, 13 percent in the detergent industry and the balance in general chemical manufacture. The soda ash plant at Sua Pan is currently operating below capacity, mainly due to weak market conditions for its products. Soda Ash Botswana's facility uses the natural carbonate resources of Botswana and has installed capacity to make the sub-continent virtually independent of imported materials. This plant also has the capacity to produce 650000 tons of salt per year, the quality of the product making it ideally suited as a raw material in the production of certain chemicals. OTHER MINERALS Botswana's other smaller deposits of minerals, although usually small operations, provide needed employment for many Botswana. Coal resources suitable for power station use have been identified in eastern Botswana, and Morpule Colliery, the country's only coal mine, is situated near Palapye and operated by the Anglo American Corporation. The Mmamabula area also contains large deposits and could conveniently supply Gaborone's industrial needs. Gold was one of the earliest minerals to be exploited, with a number of mines operating today, most of them salvaging from tailings left by older, less efficient methods of extraction. Monacrh Gold Mine has been re-opened with more advanced technologies for small scale operations, Jacomar Manganese re-opened the manganese mine at Kgakgwe Hill in the southern district, and production is under way at the Obatse Clayworks.

In the western part of the country an aeromatic survey has identified deep sedimentary basins containing non-magnetic fill and which are potential gas and oil bearing formations. Crushed stone and sand as well as limestone are quarried for use in road building and the construction sector. Semi-precious stones are also collected and processed. Other minerals known to occur in Botswana include antimony, chromite, feldspar, fluorine, graphite, gypsum, kaolin, lead, manganese, platinum, silver, talc, uranium and zinc.

Botswana: Mineral Industry Overview

Written by: Editorial Staff on September 25, 2011.on September 24, 2011. Botswanas mineral resources include base metals, coal, diamond, salt, and soda ash. Mineral exploration in Botswana is difficult because the geology of most of Botswana is poorly understood owing to extensive cover by recent sediments, and available geologic information was based mainly on drilling and geophysical surveys. Unexploited mineral resources include asbestos, chromite, feldspar, graphite, gypsum, iron, and manganese that are located mostly in remote areas or beneath a thick sequence of Kalahari sands. The geologic evolution of Botswana took place during several important metallogenic epochs. In Botswana, the Zimbabwe craton hosts copper, gold, lead, nickel, and zinc mineralization and the Limpopo Mobile Belt contains copper, nickel, and minor occurrences of precious metals. The Transvaal Supergroup contains asbestos, iron, and manganese. The Molopo Farms Complex was thought to contain chromite and platinum-group metals. The Karoo Supergroup is the largest stratigraphic unit in southern Africa, covering almost two-thirds of the present land surface, including central Cape Province, almost all of Orange Free State, western Natal, and much of Malawi, Zambia, Zimbabwe, and Transvaal. Major deposits of coal and diamondiferous rocks occur in the Karoo. Deep sedimentary basins within the Damara Province were thought to be potential hydrocarbon traps. The Makgadikgadi Basin, which is a relatively young geologic feature, has deposits of salt and soda ash (Ministry of Minerals, Energy and Water Resources, 2009). Mineral exploration and mining in Botswana are regulated by the Department of Geological Survey and the Department of Mines. The Department of Geological Surveys role is to gather, collate, assess, and disseminate information related to the groundwater, rocks, and mineral resources of the country. It also administers those sections of the Mines and Minerals Act that concern mineral exploration. Three basic types of mining licenses are granted in Botswanathe reconnaissance permit, the prospecting license, and the mining lease. Mineral rights are the property of the state, irrespective of the ownership of the land on which they are found. Residents of communities in the areas of exploration and mining development cannot claim ownership of mineral rights from existing mines in the country, and the Basarwa are no exception. The Governments goal is to ensure that all the citizens have a common stake and

enjoy common benefits from mineral revenues (Ministry of Minerals, Energy and Water Resources, 2009). The Department of Mines, in partnership with stakeholders, develops policy, legislation, and programs for mineral exploration, and provides administrative services. The Department works to prevent mining occupational diseases and injuries and to minimize degradation of the environment. The Department of Mines was reviewing the Mines and Minerals Act to ensure that mining license holders make adequate financial provision to fulfill the environmental obligation of rehabilitating the mines at the end of mine life (Ministry of Minerals, Energy and Water Resources, 2009). Minerals in the National Economy In 2009, Botswanas mineral resource sector, which was the sector that was the most sensitive to financial shock, was negatively affected by international credit crunch. Exploitation of Botswanas rich mineral reserves, especially diamond, has been a significant driver of the countrys economy. Although the country remained a leading producer of diamond (by value) and the worlds third ranked producer of diamond (in terms of volume) after the Democratic Republic of the Congo [Congo (Kinshasa)] and Australia, it saw diamond production drop to 17.7 million carats in 2009 from 32.6 million carats in 2008. Diamond sales declined to $1.7 billion in 2009 from $2.8 billion in 2008 (Israeli Diamond Industry, 2010). Production With the exception of copper, diamond, and gold production, the mineral sector was not affected in a major way by the global economic downturn. Tati Nickel Mining Co. (Pty.) Ltd. (a subsidiary of OJSC MMC Norilsk Nickel of Russia) produced 28,595 metric tons (t) of nickel, 23,146 t of copper, and 330 t of cobalt from its nickel-copper matte. Bamangwato Concessions Ltd. (BCL) of Botswana processed copper-nickel concentrate from its Selebi-Phikwe Mines. Also, BCL toll-smelted concentrate from Tati Nickels Phoenix open pit mine. IAMGOLD Corp. produced 1,530 kilograms (kg) of gold in 2009 compared with 3,176 kg in 2008. In 2009, there was a significant decrease in diamond production. Almost all the countrys roughdiamond output was by Debswana Diamond Co. (Pty) Ltd. (Debswana), which was a 50-50 joint venture of the De Beers Group of South Africa and the Government. Production of semiprecious stones totaled about 30,000 kg. The semiprecious stones were mainly varieties of agate and carnelian, and production was not reported separately. Botswana Ash (Pty.) Ltd. produced salt and soda ash. Soda ash production was more or less the same as in 2008 and had a significant though small role in the national economy. In 2009, companies extracted clay, crushed stone, gravel, and sand from different areas of the country. Production of these industrial materials depended on consumption by the construction industry. Coal production in 2009 was about the same as in 2008 (Ministry of Minerals, Energy and Water Resources, 2009). Structure of the Mineral Industry Although the Government maintained an equity position in most of the major mining companies, the mineral industry operated mainly on a privately owned free-market basis. In addition to these major operations, a number of medium- and small-scale mines produced agates, aggregates, clay, and dimension stone.

Botswana: Minerals sector revenues to aid economic diversification

With the output of diamond production set to decline over the medium term as reserves diminish, Botswanas government has enacted a number of measures to ensure that revenues are used to aid economic diversification. This is stated in London-based company Business Monitor Internationals Botswana Mining Report Q1 2011, which refers to the government adopting a fiscal rule that states that minerals revenues must be used to expand the economys productive base, rather than fund consumption expenditure. Owing to this rule and other initiatives included in successive six-year National Development Plans and the long-term national development policy, Vision 2016, which aims to improve the socioeconomic climate in Botswana, growth in the non-mining sectors is burgeoning. The Vision 2016 council, which monitors and evaluates the effective and timely implementation of the vision by all stakeholders of Vision 2016, states on its website that it expects income per capita to grow by 6% by 2016. 'Unemployment will be drastically reduced, as economic growth in the formal and informal sectors and econo- mic diversification will have generated more employment opportunities,' the council states. The Botswana Mining Report Q1 2011 states that the economic dominance of diamonds is expected to continue over the coming decade, with the authorities in Gaborone having an impressive record in garnering the maximum benefit from the production of diamonds. 'Botswana is the worlds leading producer of gem-quality diamonds with the capacity to produce between 30-million carats and 34-million carats,' states the Botswana Ministry of Minerals, Energy and Water Resources (MMEWR). The Botswana government continues to focus on investment in its mining industry, as it constitutes the bulk of the countrys earnings. The minerals sector contributes 75% of national

export earnings, 40% of gross domestic product and 50% of government revenues, which are mainly generated from taxes and dividends from diamond production. 'The exploitation of rich mineral reserves, especially diamonds, has been a significant driver of Botswana's economic growth. Diamonds, along with copper and nickel, are major focus areas in metals and mineral exploration, and earn more than three-quarters of the country's export revenues. Coal and uranium have also emerged as key future revenue generators for the Botswana mining industry,' states the report. 'The governments main aim for the minerals sector is to increase the econo- mic benefits for the nation, while enabling private investors to earn competitive returns, and encourage links with the rest of the economy to expand value-addition activities, especially through the downstream processing of minerals, where commercially viable,' the MMEWR states. The Ministry aims to create a competitive environment to stimulate private sector investment in mineral exploration and exploitation through issuing diamond export permits in two days, a prospecting licence in 60 days and mining concessions in 15 days for small-scale mining operations and large-scale mining operations in 20 days. However, MMEWR outgoing permanent secretary Gabaake Gabaake previously stated that Botswana would look to reduce the time taken to issue prospecting licences to 30 days from application. The MMEWR explains that, since the discovery of diamond, copper and nickel deposits, exploration activity in Botswana has generally been on the increase. The Ministry attributes this to the countrys attractive geology, the discov- ery of massive mineral deposits, the availability of reasonable up-to-date and easily accessible geological data compiled by Botswanas Geological Survey Department, as well as investor-friendly mineral legislation. The promotion of mineral investment in Botswana is the mandate of the Mineral Affairs Division, which is within the domain of the MMEWR. Initiatives undertaken to increase investment in the countrys minerals sector are the enactment of a new mining code, implemented in 1999, that streamlines licensing and enhances security of tenure, the reduction of the fiscal burden on marginally economic mines, the reform of procedures in the MMEWR, investment in new facilities for the storing and inspection of technical data on mineral prospectivity, including samples and cores, and the development of a national integrated geoscience information system for titles and data management. Besides diamonds, Botswana also produces coal, copper/nickel matte, gold and soda ash. 'Soda ash and chemical-grade salt supplier Botswana Ash is located in the Sua Pans and produces about 300 000 t of soda ash from brine solution for export to neighbouring countries. It offers good investment potential in the manufacturing of detergents and glass,' says the MMEWR. Other minerals that have been identified include uranium, zinc and coal-bed methane (CBM). 'There are three companies actively prospecting for CBM, after it was discovered by the Botswana government in early 2000. However, these companies are currently struggling to produce CBM at commercial scale,' explains the MMWER. Further, the government is constructing a 90 MW open-cycle gas turbine (OCGT), in Orapa, near the gasfields. Initially, the OCGT will run on liquid fuel and will offtake CBM from any company that is able and not willing to invest downstream. Current confirmed mining operations in the country include diamond-miner Debswanas Jwaneng, Orapa and Letlhakane diamond mines, base metals miner BCLs copper/nickel mine, Tati Nickel Mining Companys copper/ nickel mine, copper production and exploration company

African Coppers Mowana copper mine, precious-metals mining and exploration company IamGolds Mupane gold mine and Botswana Ashs soda ash and salt mine. The countrys unexploited mineral resources include asbestos, chromite, feldspar, graphite, gypsum and iron, many of which are located in remote areas or beneath a thick sequence of the Kalahari sands. Considerable opportunities also exist for coal and manganese, as well as gold in the Francistown area. Currently, only the Morupule colliery, in Palapye, is being mined to supply power utility Botswana Power Corporations Morupule power station, the BCL smelter and Botswana Ash. Botswana has in excess of 200-billion tons of coal resources, which are mostly unexploited owing to logistical constraints to the markets. To solve this issue, two potential routes, which involve the construction of a rail line to either Namibia or Mozambique, are being considered. In terms of the Namibian route, a prefeasibility study is ongoing and is expected to be complete in March, with good potential for private investment identified. The construction of a $9-billion railway line connecting Botswanas Mmamabula coalfield with the Namibian port of Walvis Bay is expected to start in 18 months. Construction of the Trans-Kalahari Railway would take five years, with costs expected to range between $5- billion and $9-billion, Ministry of Works director of railway affairs Robert Kalomo said in a media report. The route to Mozambique is under discussion, with the country to enter into a memorandum of understanding with Botswana.

Botswana Mining: Minerals Mined, Objectives and Benefits to Batswana

If you want to know about Botswana mining then you are going to read this page. Here's what Im going to share... 1. the minerals mined in Botswana 2. the benefits of mining in Botswana to the people of Botswana 3. the mining industry objectives and policies. Lets get right into it... Minerals mined in Botswana Botswana is famous for being the largest diamond producer by value; however what most people dont know is that there are many other minerals mined in the country. These include: Coal Gold Soda Ash Salt Copper and nickel

Even though the above minerals might not bring in as much foreign revenue as diamonds, they still play a significant role in the contribution to the country's GDP. Benefits on Mining in Botswana I dont know much about the mining policies of Botswana but one thing for sure is that the country has made it a priority for its people (Batswana) to benefit from the foreign currency earned from the mining activities that take place in the country.

One of the main objectives of mining in Botswana is to improve the lives of the people of Botswana. From experience i can say that indeed this objective is being met. The Government of Botswana sponsors thousands of students every year not only for primary and secondary education but also for tertiary education. In addition to educations, medical services are also heavily subsidized enabling Batswana to get medical attention at really low prices at local clinics and hospitals. Another way that mining in Botswana has been of benefit to Batswana is through employment. Mines are labor intensive and every mine in Botswana therefore employs hundreds if not thousands of Batswana (many of which would unlikely be unemployed if they didnt work at the mines) These are just a few of the many benefits the mining industry has made possible. Botswana Mining Objectives and Policies I mentioned above that Im not too familiar with the policies and objectives of the Mining industry in my country , however i did some research for you and i found the aims and objectives of the industry . Read more about it below... "Botswana's mineral policy aims to strike a balance between maximizing economic benefits for the nation while allowing investors to earn competitive returns. Other objectives are to encourage prospecting and new mine development, generate linkages with the rest of the economy and increase local value added. The creation of employment and training opportunities for Batswana is also vital, as is protection of the environment."

Mining in Botswana
Discover the Minerals Mined in Botswana Mining in Botswana is most times associated with diamonds; however what most people dont know is that there are several other minerals that are heavily mined in Botswana.

In this page I will be sharing some of these minerals. Before that however, lets talk a bit about the Diamond mining industry in Botswana.
Diamonds Diamonds were one of the very first minerals to be discovered in Botswana. It was only after the discovery of diamonds in 1967, a year after the country gained its independence, that the economy of the country started to improve.

Since then, Botswana diamonds have literally shaped the economy of the country and as a result improved the lives of Batswana who continue to benefit from the foreign revenue earned through the mining of diamonds in Botswana. Below are the other minerals mined in Botswana...
Gold Gold mining was first done in Francistown over a century ago. In fact Francistown was the first ever town in Botswana because of the Gold deposits that were discovered in the Town.

Most of the mining activity took place during the gold rush in the 1890's and again between 1920's and 1930's. Today Gold mining in Botswana is done at the Mupane Gold mine which is also in the Francistown region.
Copper and Nickel I dont know much about the copper and nickel mining in Botswana, however , I know many of my friends and cousins work at a copper and nickel mine located about 30km from Francistown along the Matsiloje road.

There are also two other mines where copper nickel is mined. One is located near Dukwi, a small village found between Francistown and Nata; the other mine is the one found in Selebe Phikwe, which was the first Copper and nickel mine in Botswana.
Coal

Coal in Botswana is currently produced in the Morupule Colliery which is located between Palapye and Serowe.

The coal is produced primarily for domestic power supply and the mining industry. In addition to that, the coal is also supplied to Zambia, Zimbabwe and the DRC.
Soda Ash and Salt Soda Ash and Salt are both produced at Sua Pan by Botswana Ash (Pty) Ltd. Production initially started in 1991 and over the decades Botswana Ash has become one of Africa's largest producers of both soda ash and salt.

The plant has soda ash reserves that are expected to last up until the year 2080.

Mining in Botswana

Like in most countries, the mining industry in Botswana is one of the key drivers of the countrys economy. It is alleged that the mineral industry of Botswana has dominated the national economy since the early 1990s, this is according to Wikipedia. In a recent report published by Toronto based Fraser Institute, Botswana mining was ranked 14th and top on the Africa continent, beating also South Africa which was placed 67 of 79 jurisdictions across the world. It is expected that, from 2011 to 2015, Botswanas mining sector will show an average growth rate of nearly eight per cent as new projects in the copper, uranium and coal sectors come on stream. his is pointed out in the Botswana Mining Report Q1 2011, published by London- based company Business Monitor Inter-national (BMI), which states that diamonds will remain the mainstay of the worlds number one rough diamond export country, with key mining projects being developed in the copper, uranium and coal sub sectors. We believe that mining can show an average annual growth rate of 7, 7 per cent from 2011 to 2015, with the industry reaching a value of $12-billion in 2015, BMI stated. Closer look

Botswana is also best known for its diamond production, which has been the leading component of the mineral sector since large-scale diamond production began 25 years ago. Most of Botswanas diamond production was of gem quality, which resulted in the countrys position as one of the worlds leading producer of diamond by value. It is alleged that the search of diamonds in Botswana began in the Tuli Block in 1955. Following the success discovery of diamond, Botswana gave birth to one of the leading diamond producer, Debswana. Formed by the government and South Africas De Beers in equal partnership, Debswana has played a significant role in the transformation of Botswana's economy. It is one of the the largest non-government employer and one of the largest earner of foreign exchange in Botswana. "It all began in 1967, when after a 12 year search, De Beers geologists discovered the kimberlite pipe north of the village of Letlhakane and later that year found the diamondiferous pipe at the village of Orapa. In 1972, the Jwaneng diamondiferous pipes were discovered,making Jwaneng mine the largest diamond producer by value." Former Chairperson, board of directors Eric Molale, June 2009. The main purpose of the company is to mine, recover and sort diamonds. Debswana diamond mining operations are situated at Jwaneng, Orapa, Letlhakane and Damtshaa. It is alleged that the first mine began production at Orapa in 1972, followed by the smaller mines of Lethlakane and Damtshaa. What has become one of the single-richest diamond mines in the world opened in Jwaneng in 1982. The Orapa 2000 Expansion of the existing Orapa mine was opened in 2000. And in December 2004, Debswana negotiated 25 year lease renewals for all four of its mines with the Government of Botswana. In addition, as part of Botswana's drive to diversify and increase local value added within the mining sector, De Beers opened the Diamond Trading Center Botswana (DTCB) in 2008 to shift sorting, cutting, polishing, aggregating, and marketing to Gaborone from London. In 2009, the DeBeers group postponed moving its worldwide diamond aggregation from London to Botswana. In 2011, De Beers are set to increase production even further to meet the revival in global diamond consumption. Like the rest of the world, Botswana also felt the recent economic meltdown which resulted in the decrease of demand for diamonds, Botswanas diamonds sales volume for 2009 was 37 per cent lower than that of 2007, according to government reports. However, diamond mining is set to continue to be the mainstay of Botswanas economy, with known current reserves sufficient for at least the next 20 years. According to a report by Idex Online, Botswana exported $354.3 million worth of diamonds in January, 40.3 percent increase compared to January 2010. Month over month, exports increased 136.8 percent, based on figures released by the Bank of Botswana. A number of companies have polishing facilities in the country, but Botswana mainly exports rough diamonds. After a couple of years of decreased diamond mining in response to the global recession, in the past year diamond extraction is picking up. In 2010, Botswana exported $3.16 billion worth of diamonds compared to $2.12 billion exported in 2009.

Copper and Nickel mining According to Wikipedia, In eastern Botswana, about 200 kilometers (km) south of Francistown, the smelter operated by BCL of Botswana processed copper-nickel concentrate from the companys Selebi-Phikwe Mine. Under an agreement signed in 2001 by Centametall and Falconbridge International of Bardados, BCL also toll-smelted concentrate from the Phoenix open pit mine, which was operated by Tati Nickel Mininig (a subsidiary of LionOre Mining International of Canada. During 2005, the BCL smelter produced 68,637 metric tons (t) of nickel-copper-cobalt matte. Centametall and Falconbridge shipped the nickel matte to the Falconbridge Nikkelverk. In 2002, BCL and Falconbridge agreed to extend to 2015 the tolling agreement under which BCL-mined nickel matte was refined in Norway. The reserves at the Selebi-Phikwe Mine, however, were expected to be exhausted by 2011 or 2012. In 2005, the Government continued to evaluate proposals to sustain the town of Selebi-Phikwe after the closure of the mine and to minimize the potential negative impact of the closure on operations of the BCL smelter, the Botswana Power Corporation, the Botswana Railways, and the Morupule Colliery. The BCL operation accounted for about 60 per cent of Botswanas industrial sectors total energy consumption. Nationalition An issue which is sensitive and bubbling around South Africa is nationalistion of mines, and Botswana always come to the picture as natioinalisation talks becomes louder and louder everyday. And no doubt the way in which the mining industry is operated in Botswana has proved to be beneficial for the country and its people. However, there still seemed to be confusion in the way the minining industry is operated in Botswana, with statements that Botswana mining is operated by the state is slowly gaining momentum in South Africa. Spokesperson for the African National Congress (ANC), which are in the forefront of the nationalisation campaign was quoted giving example of state own mine countrie and Botswana was also there. In a report by Sapa - AP, Esther Kanaimba, spokesperson for Botswana's Debswana, stresses that "we are not a state mining company", but an equal partnership between the government and the private giant De Beers. "The government does not play any role in the day-to-day running of the company," Kanaimba said. State involvement The Government of Botswanas main objective for the minerals sector is to continue getting the maximised economic benefits from the sector for the nation while enabling private investors to earn competitive returns. Government policy encourages prospecting and new mine development, and it promotes

opportunities for linkages to the rest of the economy to expand value-added activities, especially through downstream processing of minerals, where this is commercially viable. The fiscal, legal and policy framework for mineral exploration, mining and mineral processing in Botswana is continuously being reviewed from time to time to make it more competitive, with the most notable changes being the amendment of Mines and Minerals Act in 1999 and the Income Tax Act in 2006. Initiatives already taken by the Government towards these objectives includes: The enactment in 1999 of a new mining code that streamlines licensing and enhances security of tenure, The reduction of the fiscal burden on marginally economic mines, The reform of procedures within the Ministry of Minerals, Energy and Water Resources (MMEWR), Investment in new facilities for storing and inspection of technical data on mineral prospectively, including samples and cores, and The development of a fully-integrated National Integrated Geo-Science Information System (NIGIS) for titles and data management. The mining codes, all mineral rights in Botswana are vested in the state and it is the Minister of Minerals, Energy and Water resources (MMEWR) who should ensure, in the public interest, that the mineral resources of the republic are investigated and exploited in the most efficient, beneficial and timely manner. This is done by ensuring the rule of law prevails and investors are treated fairly through development and implementation of the fiscal and legal policy framework for mineral development which aims at making Botswanas minerals sector to be more competitive and attractive to investors. The new Mines and Minerals Act was favourably received by industry and it compares well with other modern mineral legislation elsewhere meeting investor concerns on issues such as security of tenure; a legislated fiscal regime that is stable, progressive and lessens the burden on marginal mines; clear and streamlined licensing procedures, and environmental obligations that relate to international best practice. Major highlights in the mining code are as follows; The abolition of the governments right to a fifteen per cent free equity participation in all new mining projects, replaced by an option to acquire up to a fifteen per cent working interest participation in proposed mine on mutually agreed commercial terms and government shall be obliged in the same manner as other shareholders to contribute working interest. A downward revision of royalty rates payable on the sale of all minerals or mineral products from five per cent to three per cent, with the exception of precious stones and precious metals, which remain at ten per cent and five per cent respectively The introduction of new variable rate income tax formula, applicable to all non diamond mining operations, diamond being strategic mineral to the economy of Botswana , diamond mining licences are negotiated, in good faith, between Government and the applicant covering all technical, financial and commercial aspects of the proposed project including Government participation. The grant, renewal and transfer of mineral licenses have been simplified, to make the process more predictable and transparent, thereby improving security of tenure of mineral concessions holders in Botswana. Restrictions on the transfer of mineral concessions have been Liberalised The introduction of a new type of mineral concession, the retention license (RL), allowing an investor that has completed an exploration programme and confirmed the discovery of a

mineral deposit to retain rights over it for renewable periods, should prevailing market conditions make immediate exploitation of the deposit

Mining industry of Botswana

The mineral industry of Botswana has dominated the national economy since the early 1990s. Diamond has been the leading component of the mineral sector since large-scale diamond production began 25 years ago. Most of Botswanas diamond production was of gem quality, which resulted in the countrys position as the worlds leading producer of diamond by value. Copper, gold, nickel, and soda ash production also has held traditionally significant, though smaller, roles in the national economy. In 2005, mining accounted for about 38% of Botswanas real gross domestic product (GDP), and more than 50% of Government revenues were derived from mining and mineral-processing activity. In 2005, the nominal value of minerals produced in Botswana exceeded that of 2004 by about 20% in terms of the United States (U.S.) dollar. Much of the increase was attributed to higher international mineral prices. Diamond, copper-nickel matte, and gold, in order of value, accounted for most of the increase.[1]

Trade
Botswana encompasses an area of 600,379 square kilometers in southern Africa and is bordered by Namibia, South Africa, and Zimbabwe. Most merchandise trade was shipped via rail or truck through South Africa. The total value of exports in 2005 was about $4.66 billion. Mineral exports, of which diamond accounted for $3.3 billion; copper and nickel matte, about $461 million; soda ash, about $65 million; and gold, about $36 million, represented 83% of total merchandise exports. The provisional value of imports in 2005 was $3.28 billion.[1]

Commodities

Copper and Nickel

In eastern Botswana, about 200 kilometers (km) south of Francistown, the smelter operated by BCL Ltd. of Botswana processed copper-nickel concentrate from the companys Selebi-Phikwe Mine. Under an agreement signed in 2001 by Centametall AG of Switzerland and Falconbridge International Ltd. of Barbados, BCL also toll-smelted concentrate from the Phoenix open pit mine, which was operated by Tati Nickel Mining Co. (a subsidiary of LionOre Mining International Ltd. of Canada). During 2005, the BCL smelter produced 68,637 metric tons (t) of nickel-copper-cobalt matte. Centametall and Falconbridge shipped the nickel matte to the

Falconbridge Nikkelverk, AS refinery in Norway and RioZim Ltd.s Eiffel Flats refinery in Zimbabwe.[1] In 2002, BCL and Falconbridge agreed to extend to 2015 the tolling agreement under which BCL-mined nickel matte was refined in Norway. The reserves at the Selebi-Phikwe Mine, however, were expected to be exhausted by 2011 or 2012. In 2005, the Government continued to evaluate proposals to sustain the town of Selebi-Phikwe after the closure of the mine and to minimize the potential negative impact of the closure on operations of the BCL smelter, the Botswana Power Corporation, the Botswana Railways, and the Morupule Colliery. The BCL operation accounted for about 60% of Botswanas industrial sectors total energy consumption.[1] The output of copper-nickel matte from the BCL smelter traditionally has exceeded the smelters 40,000-metric-ton-per-year (t/yr) design capacity, often by more than 30%. Despite the adverse effect of cyclical metals prices during the past two decades and the looming closure of the Selebi-Phikwe Mine, the design capacity of BCL smelter recently was expanded to 60,000 t/yr. In 2005, matte output exceeded the smelters new design capacity. Because the BCL smelter might shut down with the closure of the Selebi-Phikwe Mine, LionOre had initiated in 2003 a pilot plant project to evaluate the recovery of copper and nickel from the Phoenix Mine by using Western Minerals Technology Pty. Ltd.s Activox process. In 2005, a feasibility study of an Activox plant with an output capacity of 25,000 t/yr of nickel was underway. The study was expected to be completed in mid-2006.[1] Several copper and nickel exploration projects were underway as of 2005. African Copper plc continued its evaluation of the Dukwe copper project, which was located about 130 km northwest of Francistown, and the adjacent Matsitama licenses. African Copper successfully completed a feasibility study of an open pit, heap leach, and solvent extraction/electrowinning operation to process the oxidized ore at Dukwe and started a feasibility study of the underground development of the sulfide zone at Dukwe. African Copper proposed to begin a 10,000-meter infill drill program at Matsitama in 2006.[1] In 2005, Discovery Nickel Ltd. continued its exploration drilling on the Northeast Botswana Brownfields nickel project, which included the Dikoloti, the Dikoloti North, the Kima, and the Lentswe prospects. In 2005, Discovery Nickel acquired seven prospecting licenses in northwest Botswana that formed the Maun copper project. Tau Mining Botswana (Pty.) Ltd. [a subsidiary of African Platinum plc (Afplats) of the United Kingdom] completed a preliminary evaluation of its Molopo Farms prospect, which was located about 175 km west of Gaborone. Because of higher priority projects in southern Africa, Afplats decided to divest its interest in the Molopo Farms prospect.[1] WMC Resources Exploration Pty. Ltd. of Australia was acquired by the BHP Billiton Group in 2005. The WMC/BHP Billiton joint venture with Albidon Ltd. of Australia conducted airborne and ground electromagnetic surveys, mapping, and soil sampling on its Selebi-Phikwe nickel project. Activity on the Tati nickel project, which was a joint venture of Albidon and Gallery Gold Ltd. of Australia, included the completion of a reconnaissance drilling program on the Kismet and the Tekwane nickel prospects.[1]

Gold
Mupane Gold (a subsidiary of Gallery Gold) operated the Mupane Mine, which was located about 30 km southwest of Francistown. In 2005, ore was sourced from the oxide and transition zones of the Tau open pit and, after mid-year, the oxide zone of the Tholo pit. At the Mupane

plant, Mupane Gold commissioned a ball mill, installed a flotation plant to handle sulfide and transition zone gold ore, and upgraded the oxygen plant. Gallery Gold continued exploration of other gold occurrences near the Mupane facility; these included the Jims Luck prospect; the Maitengwe lease; the Golden Eagle, the Lady Mary 2, and the Map Nora prospects on the Sashe license; the Ratomo and the Signal Hill prospects in the Tati Belt; and the Vumba lease. At yearend IAMGOLD Corp. of Canada proposed to acquire Gallery Gold and Gallery Golds Botswana operations.[1]

Diamond
Debswana (a 50-50 joint partnership of De Beers Centenary AG and the Government) accounted for all diamond production in Botswana from its four mines. Debswana continued its recovery from the labor unrest that had resulted in a 2-week strike in 2004. In 2005, Debswana treated about 31.2 million metric tons (Mt) of ore to yield 31,890,000 carats (6,380 kg), which was an weight increase of more than 2% compared with 2004. Debswanas diamond production included 148,900,000 carats (29,800 kg) from the 34-year-old Orapa Mine, which was a 7% decline compared with 2004; 15,600,000 carats (3,100 kg) from the 23-year-old Jwaneng Mine, which was a 14% increase compared with 2004; 1,097,000 carats (219 kg) from the 20-year-old Letlhakane Mine, which was a 6% increase compared with 2004; and 246,278 carats (49.256 kg) from the 2-year-old Damtshaa Mine, which was a 27% decline from that of 2004. The production decline at Orapa was attributed to the loss of a haul road because of a ramp failure and a fire, which destroyed a loading shovel.[1] De Beers and the Government agreed that some of De Beers Diamond Trading Companys operations would move from London, United Kingdom, to Gaborone, Botswana. Local marketing of domestically produced gemstones was expected to help the local diamond cutting and polishing companies. Numerous other companies were exploring for diamond in Botswana. Active exploration operations included those of Boteti Exploration (Pty.) Ltd., which was a joint venture between De Beers (51%) and African Diamonds plc (49%); Gcwihaba Resources (Pty.) Ltd. (a subsidiary of Tsodilo Resources Ltd.); Helio Resources Corp.; Newdico (Pty.) Ltd., which was a joint venture of Tsodilo (81%) and the Trans Hex Group (19%); Tawana Resources N.L.; and the joint ventures of De Beers and Firestone Diamonds plc; Motapa Diamonds Inc. and Stornoway Diamond Corp.; and Rio Tinto Mining and Exploration Ltd. and Trivalence Mining Corp. In addition, DiamonEx Ltd. of Australia started a reevaluation of the Martins Drift prospect, which was a 5-kimberlite deposit that had been trial mined by Tswapong Mining Co. from 1998 to 2001, and Petra Diamonds Ltd. of the Channel Islands acquired Kalahari Diamond Ltd. and its Botswana-based subsidiary Sekaka Diamonds (Pty.) Ltd.

Coal
Debswana operated the Morupule Colliery at Palapye, which is located about 175 km south of Francistown. Much of the companys coal production was sold to the adjacent Morupule Power Station (MPS) of Botswana Power Corp. (BPC). Record coal sales in 2005 were 967,242 t, which was an 8% increase compared with the total in 2004. A coal washing plant was under construction.[1]

In 2005, Coal Investment Corp. (CIC) of the British Virgin Islands and Meepong Investments (Pty.) Ltd. of Botswana entered into a joint venture to reevaluate the Mmamabula coal project. Mmamabula previously had been explored extensively by a number of organizations, which included AMAX Exploration Inc. of the United States, Anglo American Corp. of South Africa, the coal division of British Petroleum Ltd. of the United Kingdom, Charbonnages de France International Botswana, the Geological Survey of the Bechuanaland Protectorate, the Geological Survey of Botwsana, and Shell Coal Botswana Ltd. Mmamabulas inland location and lack of process water had thwarted the prospects development as a coal export project in the early 1980s. In 2005, CICs local subsidiary, Meepong Resources (Pty) Ltd., proceeded with a feasibility study of the Mmamabula license, and the U.S. Trade and Development Agency awarded a contract to Delphos International, Ltd. of the United States to provide financial advisory assistance to the Botswana Ministry of Minerals, Energy, and Water Resources for the development of a 1,200-megawatt coal-fired powerplant at Mmamabula.

Outlook
International interest in exploration for diamond and base and precious metals is expected to continue. The countrys favorable geologic environment, mineral investment climate, low tax rates, and political stability are expected to continue to make Botswana a foreign mineral investment magnet. The Government encourages mineral value-added processing, but the paucity of water in landlocked Botswana has deterred large-scale industrial development. The countrys small domestic market, the cost of transportation to ports in South Africa, and the perception of rampant Human Immunodeficiency Virus/Acquired Immune Deficiency Syndrome (HIV/AIDS) epidemic also limit the nations attractiveness to investment by foreign manufacturers. High fuel costs would continue to affect the cost of transportation of Botswanas imports and exports adversely.[1] Revenues from diamond operations are expected to continue to be the mainstay of the countrys economy for the foreseeable future, although Debswana has scheduled lower production volumes. Copper, gold, nickel, and soda ash production and processing also are expected to continue to be notable factors in the countrys economy.[1] Given the countrys extensive coal resources and projected regional power demand, Botswana has the potential to develop and support a small-scale coal-bed methane industry and additional coal-fueled electricity-generating plants that could supply power to the South African Power Pool through its land lines to South Africa.[1]

Strong labour relations, impressive taxation laws and adherence to safety procedures propelled Botswana to the 14th spot in the 2011 mining survey assessed by the Canadian based Fraser Institute. According to the report, Botswanas achieved a score of 74 in this

years survey, up from 66.5 last year, placing it in 14th position among all the jurisdictions and 7th among the nations surveyed. Industry players were quick to praise the survey findings saying the improved score restores Botswana to its previous highpoint of 2007/08, that is just before the global recession. Government tried its part during recession to help the mining industry, said former Permanent Secretary (PS) in the Ministry of Minerals Energy and Water Resources, Dr. Akolang Tombale. This was a positive development, Dr. Tombale observed, even though government did not bail out miners Our various legislation has been harmonized, he said, adding that the Mines and Minerals Act was reviewed with the help of stakeholders in 1999. The mining industry is on an evolution and there is room for improvement. The former PS admits that a number of gaps need to be addressed. The tenure has also been introduced, he said, explaining that previously miners lost everything when their exploration license expired. Now it is not the case, he said. The prestigious survey released in time for the world largest mining conference in Toronto this week ranks mining jurisdictions based on a number of policy factors such as labour laws, skills, security, political stability, infrastracture and regulatory efficiencies. Globally the Canadian Province of Alberta, followed by the US state of Nevada and the Canadian Province of Saskatchewan captured the top three positions. Among the conclusions in this years report is that there is growing optimism a post-economic downturn return to significant growth in the mineral sector globally, which is likely to further favour Botswana and other jurisdictions which have put in place strong frameworks for attracting investment into the sector. In addition to Botswana, it is predicted that the anticipated upturn should benefit other notably improved African performers such as Namibia, Mali and Burkina Faso. Apart from the historic economic downturn, Botswana mining has

not been rocked by controversies, except disappointing reports late last year that South Africa will not commit to purchasing electricity from CIC Energys ambitious Mmamabula Energy Project. The latest Debswana Annual Report show that its subsidiary mine, Morupule Colliery reported zero cases of accidents in 2009/10, signaling that the mine ensured that safety became a priority. By contrast, South Africa, the DRC, Tanzania and Zambia have experienced declined performance in recent years (in ranking), while Zimbabwean prospects have shown modest signs of recovery from their previous near collapse. The Survey authors observed that Africas average score has not improved in the last 4 years. The African average went down to 40.5 from 41.8. However, Botswana continues to perform strongly. Its score went up to 74 this year from 66.5 last year. Namibia is also made good progress in this years survey, moving up to 57.9 from 49.2 last year. DRC (Congo) continues its decline down to 7.8 from 18.9 last year. This drop likely reflects the uncertainty created by the nationalization and revision of contracts by the Kabila government. Since 1997, the Institute has surveyed mining and exploration companies to assess how mineral endowments and public policy factors such as taxation and regulation affect exploration investment. Survey results thus represent the opinions of a wide range of executives and exploration managers in mining and mining consulting companies operating around the world. The idea to survey mining companies about how government policies and mineral potential affect new exploration investment came from a Fraser Institute conference on mining held in Vancouver, Canada, in the fall of 1996. The comments and feedback from the conference showed that the mining industry was dissatisfied with government policies that deterred exploration investment. Since many regions around the world have attractive geology and

competitive policies, and given the increasing opportunities to pursue business ventures globally, many conference participants expressed the view that it was easier to explore in jurisdictions with attractive policies than to fight for better policies elsewhere. The Fraser Institute thus launched the survey to examine which jurisdictions provide the most favorable business climates for the industry, and in which areas certain jurisdictions need to improve.

Debswana Diamond Mines, Botswana

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Key Data
Debswana is the world's leading producer of gem diamonds, contributing about 30% of world output by value from four mines. Following detailed exploration by De Beers in the 1960s, the Orapa diamond mine, located about 240km west of Francistown, began production in July 1971. It was fully operational in August 1982. Since then, Debswana Diamond Company Ltd opened three more open pits: Letlhakane, which is 50km from Orapa, in 1975; Jwaneng, 120km west of the capital city, was discovered in 1975 and became operational in August 1982, Gaborone, in 1981-82; and the P225 million ($42.16m) Damtshaa, which is 20km east of Orapa and is managed from there, in 2003. Damtshaa mine was officially opened in October 2003. In 1989-1999 the P1.6bn ($0.34bn) Orapa 2000 project was doubled in capacity. Debswana is a 50:50 partnership between the Botswana Government and Swiss-based De Beers Centenary, a 100% subsidiary of DB Investments/De Beers SA in Luxembourg. The Botswana Government has a 15% interest in DB Investments which it took over from Debswana. The company had an overall workforce of about 5,500: 180 at Damtshaa, 2,150 at Jwaneng, and a total of 3,137 at the Orapa and Letlhakane operations, as of 2003. Debswana Diamond Company shutdown its operations from 25 February 2009 to 14 April 2009 due to less demand for rough diamonds in the market. Production at the Damtshaa mine and

Orapa No.2 plant was initially ceased until the end of 2009 but was later extended until 2010 due to incertitude in the market. The operations at the Jwaneng, Orapa and Letlhakane mines were recommenced on 15 April 2009.

Geology and reserves

The AK1 kimberlite at Orapa intruded Archaean and Karoo Supergroup strata some 93 million years ago. The kimberlite covers 118ha at surface, but comprises two individual intrusions that coalesce near the surface. Rocks from all three facies (crater, diatreme and hypabyssal) were identified. Current mining levels are contained within the crater-facies units. At Letlhakane, three different distinct episodes of intrusion are currently recognised in the D/K1 kimberlite, resulting in the formation of two ore types. LM2 (Letlhakane Mine 2) has a basalt content ranging from 5% to 80% while LM1, found in the northern half of the pipe, has less than 10% basalt. There are four pipes at Damtshaa. The 5.5ha B/K1, which was actually the first kimberlite discovered in the Orapa / Letlhakane province, partly comprises tuffisitic kimberlite breccia (TKB). B/K9 has a sub-outcrop area of 11.4ha, includes hypabyssal kimberlite and TKB, and contributes 88% of the new mine's output. The B/K12 pipe, 800m northwest of B/K9, has a suboutcrop area of 3.2ha, and a maximum diameter of just over 200m with sedimentary crater facies infill to at least 90m depth. The B/K15 kimberlite can generally be described as a diatreme-facies TKB.
"In 2005, Debswana recovered a third successive record amount of diamond, despite a major slope failure."

The kimberlite pipes at Jwaneng intruded shales of the Transvaal Supergroup about 250 million years ago, and are older than most kimberlites in southern Africa. They are filled with craterfacies material to a depth of 600m, the dominant infill reworked volcaniclastic kimberlite, but each pipe exhibits a distinct geology and diamond grade signature. In 2004, mining revealed the existence of a fourth pipe. The company does not publish information about its reserves.

Mining
Working a seven-day week, the open pits are medium- to very large-scale operations: Orapa extracts 20Mtpa of ore and 40Mtpa of waste. They use rotary drills and large shovels, either electric where grid power is available or diesel / hydraulic where it is not, dozers, wheeled loaders, and a variety of Caterpillar and Komatsu haul trucks ranging from 85st capacity to 240st capacity Caterpillar 793Cs used at Jwaneng. Truck dispatch is by computer-based systems, and Jwaneng has a Gemcom integrated mine production and management system. Debswana Diamond Company received approval from the Government of Botswana and De Beers in November 2009 to begin the expansion of Jwaneng mine for extracting additional reserves. The expansion contract is also known as Cut 8 and requires removal of 700Mt of waste at the mine to recover 78Mt of diamond bearing ore. Debswana Diamond awarded a $450m EPCM contract to Fluor Corporation in March 2010 to carry out the Jwaneng's Cut 8 expansion project. The project was launched in December 2010 and extends the life of the mine out to 2025.

Majwe (a joint venture between Leighton International and Basil Read and Bothakga Burrow) was awarded a five-year, $580m contract by Debswana Diamond in May 2011 to remove 400Mt of overburden at Jwaneng mine as part of the Cut 8 contract. Under the contract, Majwe will also render services such as mine scheduling, drilling and blasting, truck and shovel waste removal as well as limited ore mining to Jwaneng mine.

Processing
Debswana introduced in-pit crushing at Jwaneng in the mid-1990s. Following secondary crushing, dense-medium cyclones separate 99% of the waste from the diamonds. Tailings from this process are recrushed and recycled. Security is a key feature of plant design, especially the materials-handling systems. For example, pneumo-drier conveying systems simultaneously transport, dry and protect particulate materials. The concentrate from Orapa, Letlhakane and Damtshaa goes to the multi-storey Completely Automated Recovery Plant (CARP) at Orapa, and that from Jwaneng to a similar facility on site. The Jwaneng CARP is part of the Aquarium project, which reached full capacity during 2003 and added the Fully Integrated Sort House to handle the diamonds recovered by both CARPs. The Aquarium project was De Beers' first fully hands-off recovery and sorting facility, utilising X-ray and laser technology. Bateman Engineering was awarded an R84.3m contract by Debswana Diamond in February 2006 to increase the processing capacity at the Damtshaa mine from 200 tonnes per hour (tph) to 400tph.

Production
In 2005, Debswana recovered a third successive record amount of diamond, 31.89 million carat tonnes (Mct) compared with 31.12Mct in 2004 and 30.2Mct in 2003, despite a major slope failure and the loss of a loading shovel by fire at Orapa. Orapa, Letlhakane and Damtshaa contributed 16.3mct and Jwaneng 15.6mct. Jwaneng produced 11.5Mct of saleable diamonds in 2010. Letlhakane mine extracted 1.2Mct of saleable diamonds from 3.3Mt of ore in 2010. Production at the Orapa mine in 2010 was 9.528Mct of diamonds.

Mining Botswanas ever-deeper potential

Diamond mining is the economys mainstay, but base metal and energy mineral developments are attracting new investment too A combination of still-untapped resources, low direct tax rates and absence of compulsory minimum local equity requirements has kept Botswana as Sub Saharan Africas most attractive mining investment target. In its 2010/11 Annual Survey of Mining Companies, Canadas Fraser Institute ranked Botswana 14th out of 79 jurisdictions, as well as 1st in Africa by mining policy potential and 7th in Africa by mineral potential. These high rankings are unlikely to be significantly affected by the cabinets May 2011 decision to establish a mining investment company to manage existing government shareholdings in Debswana Diamond Company (50:50 government/ De Beers), the BCL copper-nickel mine, Botswana Ash and Morupule Colliery. The government is entitled to acquire 15 percent of any new mining venture (50 percent in the case of diamonds), but this provision is currently not enforced. Debswana is expanding production of rough diamonds from 22 million carats in 2010 to 25 million in 2011 and 30 million in 2012, but the long-term intention is to avoid over-supplying the global market. Investment is continuing on existing mines at Jwaneng and Orapa, while the small Damtshaa mine is due to reopen in 2012 after a three-year shutdown. Downstream diamond-related activities cutting and polishing, jewellery manufacturing, and support services take place at Gaborones new Diamond Technology Park, with 16 polishing firms now operating, although many of them are finding it hard to achieve commercial viability because of squeezed operating margins. During the economic slump, De Beers postponed plans to move, from London to Gaborone, its final sorting process for boxes of uncut diamonds sold to its regular customers and has yet to set a new date for the transfer. Other new gemstone investors are Australias Firestone Diamonds, Canadas Lucara Diamonds (part of the Lundin group) and Australias Gem Diamonds. The latter, which also owns Lesothos highly profitable Letseng mine, is investing $85 million in the Central Kalahari Game Reserve for production of 100,000 carats a year. Compared to diamond output worth $3.2 billion, Botswanas other minerals did well to reach a value of $770 million in 2010, thanks to higher prices that have stimulated exploration and development of copper, nickel and zinc. Australias Discovery Metals is on schedule to start

commissioning its Boseto open-cast copper mine in the first half of 2012 and is evaluating a nickel prospect near Selibi-Phikwe. Higher international coal prices and the need to expand domestic power generation capacity have spurred exploration of Botswanas estimated 20 billion tonnes of coal resources. However, power shortages are likely to continue until the new 600 MW Morupule B power station is completed at the end of 2012; the existing station has only a 120 MW capacity and South Africas Eskom has had to cut back its usual crossborder supplies because of inadequate output at home. As large-scale imports of coal-fired electricity are ruled out under South Africas recently finalised 20-year integrated resource plan for electricity, Canadas CIC Energy has down-scaled previous plans for a largescale coal-to-power project at Mmamabula. Instead, CIC Energy which is being taken over by Indias JSW Energy is prioritising thermal coal exports alongside a much smaller 300 MW power plant for domestic supply only. Coal development could one day feed a 20 million tonnes-per-year, all-export operation. The Botswana and Namibia governments are jointly backing a feasibility study on a Trans-Kalahari railway line which would become the permanent link to a proposed coal export terminal at Walvis Bay in Namibia.

Botswana ranked number 1 in Africa for mining investment

According to the recently released Fraser Institute survey, Botswana has once again been named the foremost preferred destination for mining and mineral investment in Africa. The 2009 Fraser Institute Survey of Mining Companies is reported to have involved more that 3000 mining entities representing 71 jurisdictions on every continent except the Antarctica. Botswana was ranked 18th overall in the world, coming behind global leaders mainly concentrated in North America. 2009 thus marks the fourth year in a row Botswana has been ranked the preferred mining destination in Africa, starting from the 2005/06 survey. All respondents who commented on Botswana were reported to have said that Botswana has the most favourable policies towards mining. Botswana, with an index score of 64.9, was ahead of other African states such as Mali (53.6); Namibia (52.5), Ghana (51.3) and Burkina Faso (45.1). South Africa was ranked 10th in Africa with 40.4. Botswana also eclipsed many more developed jurisdictions such as several states in the United States, several Australian provinces, most European countries and most Latin American countries. The index score is extracted from

several criteria that the survey looks at. It is reported that respondents were asked to comment on individual countries' performances in terms of criteria such as current mineral potential, political stability, labour regulations, geological database, security, supply of labour, environmental regulations, availability of infrastructure, taxation and others. According to the survey, mining companies throughout the world ranked Botswana first in Africa in terms of political stability and labour regulations/employment agreements. Botswana was ranked second in Africa, behind South Africa, for its geological database, which includes Diamond cutting quality and scale of maps, ease of access to information and others. This ranking is expected to improve in years to come as the Department of Geological Survey (DGS) in Lobatse is currently in partnership with the Japan Oil, Gas and Metals Corporation (JOGMEC) in a remote sensing project. Under the five year project, Batswana geologists are undergoing training from our Japanese counter parts in remote sensing -the technology of detecting the presence of minerals using satellites in space. The country was also ranked first in Africa in terms of security, which includes the threat of terrorism, criminal attacks or guerrilla groups disrupting mining activities. Second in this category was Namibia. Botswana was also ranked highly in terms of taxation and environmental regulations. One of the respondents in the Survey said: "Botswana is the shining star of governance and lack of corruption in Africa" The Fraser Institute, a Canadian research organization, has conducted the mining survey since 1997 involving increasing number of respondents and jurisdictions. Survey results represent the opinions of executives and exploration managers in mining and mining consultancy companies operating around the world.

Economy
Cattle raising and the export of beef and other cattle products and subsistence farming are the chief agricultural activities. The country's water shortage and consequent lack of sufficient irrigation facilities have hampered agriculture, and only a small percentage of the land is under cultivation. Sorghum, corn, millet, and beans are the principal subsistence crops, and peanuts, sunflowers, and cotton are the main cash crops. Mining has become the country's economic mainstay since independence. The only known minerals in the country at the time of independence were manganese and some gold and asbestos, but significant diamond, coal, nickel, and copper deposits have since been found, as well as salt, soda ash, and potash. Botswana's diamond mines collectively make up one of the largest diamond reserves in the world, with stones mined by the government and a South African mining concern. The revenue earned from diamonds has underwritten national health-care and educational programs, and now drives Botswana's economy. The vast coal deposits are also being worked. Deposits of antimony, sulfur, plutonium, and platinum have also been found. Although Botswana's mineral wealth has made it one of the wealthiest nations of S Africa, high unemployment remains a problem. The government is attempting to diversify the economy by building up other sectors, including safari-based tourism and financial services. Botswana, because of its landlocked position, remains heavily dependent on South Africa, which provides port facilities. Many Botswanans work in South Africa's mines, although their numbers have diminished. There are rail and road links with South Africa and Zimbabwe, its chief trade partners. Besides minerals, Botswana exports meat and textiles. Imports include foodstuffs, machinery, electrical goods, transportation equipment, textiles, fuel, petroleum products, wood, paper, and metal.

Botswana is a landlocked country in southern Africa, located just north of South Africa. Botswana has a total area of 602,957 square kilometers (232,802 square miles), making it about

the same size as the state of Texas. The length of Botswana's border is 4,011 kilometers (2,493 miles), and its neighbors are Namibia to the west, Zimbabwe to the east, and South Africa to the south. The capital, Gaborone, has a population of about 135,000 and is located in the southeast of the country, almost on the border with South Africa.
POPULATION.

Botswana's population was estimated at 1.58 million in July 2000, growing at the slow rate of .76 percent. The population was expected to reach 2 million by 2030. The birth rate was 29.63 births per 1,000 people, and the death rate was 22.08 deaths per 1,000 people. Approximately 41 percent of the population was less than 15 years old, 55 percent was 15-64 years old, and only 4 percent had lived over 64 years of age in 2000. Botswana is one of the few countries in sub-Saharan Africa with a fairly homogeneous ethnic background. The Batswanans make up 95 percent of the population, of which the Tswana tribes constitute 60 percent. The San people (also known as Basarwa, Khwe, or Bushmen) number 60,000. Population density is low due to the harsh climate of the Kalahari desert, at 2.6 people per square kilometer (6.7 people per square mile). The majority of Botswana's people live in the southeast of the country, where the desert gives way to the more fertile land of the Okavango river delta and swamp, and 50 percent of the total population lives within 100 kilometers (62 miles) of Gaborone. At independence in 1966 only 3 percent of the population lived in urban areas, but by 2000 this figure had risen to over 65 percent. The rapid spread of AIDS in Botswana is a major reason that population growth is low. It is estimated that 25-36 percent of the population is infected with the virus, reflecting one of the highest rates in the world. This has caused a great number of social problems including labor shortages and a health care crisis. AIDS-related health and safety information is openly available, but cultural practices, social mobility, and the fact that Botswana lies on major trucking routes between South Africa and the north have contributed to the spread of the disease.

INDUSTRY
MINING.

Mining provides 86 percent of the country's export earnings, most of this from diamond sales. However, the mining sector employs only about 4.4 percent of the formal labor force. The country has 3 main diamond mines, at Orapa, Lethlakane, and Jwaneng. These are all owned and operated by Debswana, an equal joint venture between the South African diamond mining company De Beers and the Botswana government. Though diamonds dominate Botswana's mining industry, the country is also rich in copper, nickel, and gold. Botswana also has sizable coal deposits. Many of Botswana's mineral resources have not yet been discovered, but are presumed to exist given the country's geology. The area is expected to yield natural gas and crude oil; Central Botswana and the Kalahari Desert are perhaps the most likely sources of new discoveries. Though Botswana has tried to diversify its economy away from mining, the minerals sector continues to dominate the economy. Fortunately, the Botswana government saved and invested a portion of the country's mineral revenues, producing additional income for the country as well as providing investment capital for new industries.

MANUFACTURING.

Manufacturing contributes only 5 percent of GDP and employs only 8.5 percent of the country's labor force. Botswana exports most of its natural resources in raw form, with minimum processing. The Botswanan government would like more manufacturing companies to locate in the country, therefore it is focusing on the natural resources that may be used in manufacturing operations. Such resources include soda ash, which is used to produce detergents and fertilizers; and copper and nickel, which are used in electrical components. Other established manufacturing products include cement, food, and beer. In 1997 the Botswana Export Development Investment Authority was established to encourage the export of goods manufactured in Botswana.

DEPENDENCIES
Botswana has no territories or colonies. Michael Pretes Rory Eames
CAPITAL:

Gaborone.
MONETARY UNIT:

Pula. 1 pula equals 100 thebe. (Pula means "rain" and "greetings.") Notes come in 5-, 10-, 20-, 50-, and 100-pula denominations, and coins come in denominations of 1, 5, 10, 25, and 50 thebe and 1 and 2 pula.
CHIEF EXPORTS:

Diamonds, vehicles, copper, nickel, and meat.

CHIEF IMPORTS:

Foodstuffs, machinery and transport equipment, textiles, and petroleum products.

GROSS DOMESTIC PRODUCT:

US$5.7 billion (purchasing power parity, 1999 est.).

BALANCE OF TRADE:

Exports: US$2.36 billion (1999 est.). Imports: US$2.05 billion (1999 est.).

Botswana, DRC and Zambia most vulnerable to resource curse

Oxford Policy Management published a new report explaining how low- and middle-income countries are becoming increasingly vulnerable to the resource curse. The study charted the mineral dependence of nearly 100 countries since 1996 to assess their vulnerability to the resource curse, which it explains as the paradoxical situation in which resource-rich countries suffer from stagnant growth or even economic contraction, as well as institutional problems such as corruption and weak public service delivery. Mineral-dependent countries run the risk of economic problems, such as over-valued exchange rates, which can make other industries exports uncompetitive, and corruption because of sudden large windfalls of cash, says the reports author, Dan Haglund. Moreover, the greater the dependence, the greater the vulnerability to a fall in commodity prices or demand for minerals during a global economic downturn. This can create political instability and lower growth in low- and middle-income countries, at a time when global economic growth increasingly depends on these countries. The three countries most vulnerable to the resource curse are Botswana, Zambia and the DRC. Others include Bolivia, Burkina Faso, Ghana, Guyana, Lao PDR, Mali, Mauritania, Mongolia, Papua New Guinea and Tanzania.

Among its key findings, the study notes that since 1996 the number of countries depending on minerals for over a quarter of export revenues the World Banks definition of export dependence has increased by one third, to 61 countries. About three quarters of all 95 mineral-dependent countries were considered low and middle income. The degree of mineral dependence has increased substantially since commodity prices started to rise steeply after 2004 says the report, with an average increase of 12.3% in 1996 to 16% in 2010.

Mines: Botswana shows SA how

Johannesburg - On Friday De Beers and the government of Botswana concluded a milestone agreement for transferring all sorting and marketing activities to Gaborone from London. For Botswana the most important change is that it will in future have the right to sell 10% of the countrys diamond production. "This is the route that South Africa will also have to take. It's the only way to avoid eventual nationalisation," a dignitary from the ruling ANC-Cosatu-SACP-alliance said on Friday regarding the agreement. "It's an inevitable result of the resource-nationalism movement across global mining countries for all possible mineral enrichment to be done as close to the production base as possible. This will certainly take place in SA," said the source. The agreement signed in Gaborone on Friday by De Beers chairperson Nicky Oppenheimer and Botswana's Dr Ponatshego Kedikilwe, Minister of Minerals, Energy & Water Affairs, replaces the marketing agreement between De Beers and the government of Botswana which lapsed in January. The two parties have been negotiating the agreements renewal since last year - a crucial contract for both as Botswana produces about two-thirds of De Beerss diamonds. Diamonds are also by far the biggest source of foreign exchange for Botswana, Africa's oldest and most stable democracy. The De Beers's Diamond Trading Company (DTC), which stores all De Beers's unpolished diamonds in London vaults, will move its entire operation to Botswana before the end of 2013.

The DTC "buys" the production of all mines in the De Beers group at market value less 10%. It sorts and markets these for sightholders in ten sessions. These sessions, to which some 70 select clients across the globe are invited, are held every year. All De Beers's sales to sightholders will in future therefore take place in Botswana instead of London. Last year's sales were worth $5.08bn (about R37.5bn). "In 2010 the DTC made an operating profit of $478m (R3.527bn). For the 2011 financial year its operating profit is expected to be $1.3bn (R9.6bn). Tax on this amount has previously been paid in London, but Botswana will in future collect this revenue," a mining analyst said on Friday. But the Botswana governments most important stipulation is that the new agreement, which runs for 10 years, gives it direct access to the diamond market. Debswana, the 50-50 partnership company between De Beers and the government of Botswana, has previously sold all its production to the Diamond Trading Company of Botswana (DTCB) also an equal partnership between De Beers and the country's government. The DTCB in turn has sold the entire production to the DTC in London. In future DTCB will sell only 90% of its production to the DTC. The remaining 10% will be delivered to a new state-controlled diamond dealer which will sell it direct to the market. The part disposed of in this way will progressively increase to 15% of Debswana's production. This will give Botswana a firm foot in the door towards establishing a vigorous polishing and marketing industry. "That's the recipe that will probably be followed in South Africa and possibly elsewhere in Africa. Instead of mining companies being pressurised to enrich part or all of their production, they will have to surrender part of their production to state-controlled companies, which will enrich it - whether on their own or in partnership with other companies in the private sector," said the Sake24 source.