Botswana: New rule to promote local ownership of mines
A recent amendment to the Mines and Minerals Act introduces a significant change regarding ownership in mining concessions. Previously, the state had the right to acquire a 15% shareholding in any mining concession. The new regulation mandates that…
A recent amendment to the Mines and Minerals Act introduces a significant change regarding ownership in mining concessions. Previously, the state had the right to acquire a 15% shareholding in any mining concession. The new regulation mandates that companies must offer a 24% stake in new concessions to local investors, contingent on the government's decision not to purchase.
The Ministry of Mines and Energy has confirmed that this regulation came into effect on Tue, Oct 1, 2024.
This change is part of Botswana's strategic initiative to enhance local ownership of its mineral resources and to encourage domestic value addition. As the world's leading diamond producer by value, Botswana is focused on maximizing the benefits of its mineral wealth for local stakeholders.
A recent amendment to the Mines and Minerals Act introduces a significant change regarding ownership in mining concessions.
Due to reduced demand and competition from synthetic stones, Botswana has faced challenges in generating revenue from diamond sales, impacting its ability to fund the national budget. The International Monetary Fund (IMF) projects a continued economic contraction, with a forecasted GDP decline of 0.4% in 2025, following a 3% decrease in 2024.
Based on reporting by Africanews.
