BOTSWANA MINING INDUSTRY BYmric.jogmec.go.jp/public/kouenkai/2014-02/briefing_140207_05.pdf ·...

Complete Customer Satisfaction Ministry of

Minerals,

Energy &

Water

Resources

BOTSWANA MINING INDUSTRY

BY:

HOSSIA CHIMBOMBI BARULAGANYI ACE

KAGISO WALTER NNOI

Ministry of Minerals, Energy and Water Resources

MINISTRY OVERVIEW

Consist of four departments, one divisions & two parastatals: • Department of Water Affairs, • Department of Mines, • Department of Geological Survey, • Department of Energy Affairs • Mineral Affairs Division • Water Utilities Corporation • Botswana Power Corporation Its role of is to promote, regulate and assist as well as collect,

synthesizes and disseminates mining and mineral related information.


DEPARTMENT OF WATER AFFAIRS

WATER Utilities Corporation

Development and distribution of electricity to all Batswana

The policymaking authority on all matters of water resources management. It formulates, implements and monitors policies for the water sector

The policymaking authority on all matters of energy supply and demand management. It formulates, implements and monitors policies for all energy sectors and sub-sectors

Ensure mineral resources are developed and utilised in a sustainable manner. DOM licences and monitors prospecting and mining operations, & ensures their compliance with environmental, health and safety standards.

MINISTRY OF MINERALS, ENERGY AND WATER RESOURCES

Distribution of portable water to all users and the discharge of sewage for proper disposal

Advance knowledge on earth resources and advice government and the public on their sustainable utilization for the benefit of all

The policymaking authority on all matters of mining and mineral sector development. It formulates, implement sand monitors policies for the mining and mineral sectors, and sub-sectors.

MINERAL AFFAIRS DIVISION

Department of ENERGY AFFAIRS

DEPARTMENT OF GEOLOGICAL SURVEYS

DEPARTMENT OF MINES

Organizational Structure of MMEWR

Fig. 1. Organizational structure of MMEWR

Botswana Power Corporation


GEOLOGY OF BOTSWANA

Primary geological investigations dependent on acquisition of field data

Hugely impeded by cover of Kalahari desert

environment. Limited area of known exposure. The oldest rocks in Botswana constitute the Archean-

age basement which crop out only in the east of the country.


EXPOSED GEOLOGY


MINERAL OCCURENCES

• The exploitation of the country’s mineral resources

has been a key factor of the development of Botswana since independence in 1966.

• Diamond has been leading component of the mineral sector since large scale diamond production began 25 years ago.

• Botswana's diamond production is of gem quality which resulted in the country’s position as the world’s leading producer of diamond by value.

• Copper, Gold, Nickel, Coal, Soda ash and Salt also contributes to the national economy.


Metals


Precious Stones


Petroleum


Radioactive Minerals


Energy Minerals


Ownership of Minerals

• Vested in the Republic of Botswana • Minister to ensure interest of the public,

minerals are invested & exploited in most efficient, beneficial and timely manner

• Right to mine acquired through the MMA of 1999 – Prospecting License – Retention License – Mining License – Minerals Permit

12

Minerals Concession


CURRENT MINING DEVELOPMENT


14

Exploration Pre-feasibility

Feasibility & BFS

Project Financin

g Development Production Closure

Ghaghoo

D

Diamonds

MEP Aviva

Karowe Boteti

Firestone

MCM-expansion

Coal

BK16

KSE

CBM

Tlou Energy

Radioactive

Nata Energy

Anglo Coal

Asenjo

Rainbow Gas and

Coal

Damtshaa

Letlhakane

Orapa

Jwaneng

MCM

Botash

Soda Ash & Salt

Lerala


Mine Projected life of mine Estimated Resource

Morupule Coal Mine 2060 350 Mt

Botswana Ash 2020 Continuous recharge

Tati Nickel 2015 16 Mt (ore)

Orapa 2029 450 Mc (diamond)

Ghaghoo 2036 20 Mc (diamond)

Boteti 2023 15 Mc (diamond)

Karowe 2020 9.4 Mc (diamond)

BCL 2015 15 Mt (ore)

Bosetu 2025 85 Mt (ore)

Jwaneng 2040 600 Mc (diamond)

Mowana 2039 41 Mt (ore)

Thakadu 2020 20 Mt (ore)

Mupane 2014 8 Mt (gold) 15


Financials

• Royalties - %age of gross market value Mineral Type Percentage – Precious stones 10% – Precious Metals 5% – Other Minerals 3%

• Lease rentals – P100/km2 or part thereof

• Government investment – For diamonds, govt shall initiate negotiation

process in good faith – Option to acquire upto 15% working interest

for all minerals 16


Environmental Obligations

• Operate in such a manner as to preserve natural environment in accordance with laws in force from time to time

• For any renewal of a concession area an EIA shall be conducted in accordance with good international practice

• Ensure continual rehabilitation of the concession area and ultimate reclamation in so far as is practicable

• Concession holder shall made adequate ongoing financial provisions for final rehabilitation

• In the event of failure of the above, the minister may having notified the concession holder, incur the cost of restoration whereupon they will be debt due to government

17


Environmental Conservation

• Review of the Mines and Minerals Act

• Audits and Inspections of operations

• Establishment of Mines closure review committees

18


CHALLENGES

• Thick Kalahari sand cover limiting exploration

• Illegal mining especially of small scale miners

• Abandoned mine sites after cessation of mining

• Failure to rehabilitate due to financial problems

poor mining practice

• Conservation of minerals (contrary to cherry

picking)

• Limited Capacity 19


Explorers: Identify new discoveries

Miners: Develop New Mines

Thank You

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