Mining

English

Opportunities for investment in the mining sector include; prospecting and surveys, expansion of existing mining projects, new mining projects, beneficiation of minerals and improved value chain benefits.

Diamonds

The beneficiation of diamonds represents one of the most promising areas of opportunity. The Botswana Diamond Hub was established to develop a sustainable secondary diamond industry in Botswana. To facilitate the establishment of diamond ancillary businesses, 28 licensed cutting and polishing companies are in operation, mainly centred in Gaborone. The potential  exists to expand operations to other parts of the country.

Investment Opportunities

DTCI Relocation

Opportunities in the diamond mining sector include:

  • Diamond Trading, Cutting and Polishing.
  • Ancillary Support Services; Banking, Security, Insurance, Certification and Brokerage services.
  • Support and Outsourcing; general security services, Information Technology and Support, Accounting and Human Resource services.
  • Economic Spinoffs; hotels, restaurants and transportation services.

Area

Potential impact

Diamond security

Increased diamond trading brings with it increased security risk, but also opportunities for the security industry in storage and transportation

 

Communication

High speed Internet services, ICT Managed Services, Communication Infrastructure.

Transport

Air travel (charter services & commercial),
Local transport such as transit buses, taxis , limousine services and car rentals

Tourism Increased international business provides increased potential for tourism
Health Demand for health services likely to increase
Education Industry Skills development and schooling services for families of investors
Banking An additional US$3 – 6 billion national income per year is expected, requiring increased banking capacity and specialised banking services

Copper/Nickel (Value Added Investment)

BCL mine currently exports raw copper and nickel ore for processing. A domestic refinery could potentially add value to Botswana's mining sector. Four refinery options have been considered:

  • Option 1: Treatment of BCL matte only
  • Option 2: Treatment of BCL and Tati Nickel mattes
  • Option 3: Treatment of BCL and Tati Nickel mattes and copper matte from other mines
  • Option 4: Treatment of BCL matte and copper matte from other mines.

For more information on the Copper Nickel Value Addition Opportunity, contact SPEDU at www.spedu.co.bw or +267 2600303.

Coal

Botswana has large untapped resources of semi-bituminous coal in various parts of the country estimated at 212 868 million tonnes of which reserves constitute 50 to 60% of this resource, making Botswana the 2nd largest producer after South Africa. Botswana coals occur within the Karoo Basin which covers an area of about 70% of the entire country. The spread of coalfields is sparse, covering, Dukwi, Foley, Serule, Bobonong, Morupule, Moiyabana, Mmamabula, Mmamantswe, Letlhakeng, Dutlwe and Ncojane, with total deposits at Letlhakeng and Dutlwe at over 70 000 tonnes (mt) each. Shallow coal seams distributed along the eastern side of the country, allow cost-effective open-pit mining. While the western side of the country has deep seams that have Coal Bed Methane (CBM) potential. Botswana’s coal resources quality compares favorably with other coal available in the market and is suitable for export markets, with high quality resources in the East. This eastern side is well positioned with respect to: existing railway line, power, road and planned railway to ports making coal mining even more feasible. Through new mining houses, Botswana has the opportunity to raise production to between 50 and 100mt/annum especially for power generation (tapping into the SAPP) and export. For more information click on the link: http://www.bitc.co.bw/bitc-investor-handbook

Up to 2012 Botswana had produced an average of less than 1 million tonnes of coal per year for over 30 years. In 2013 over 3 million tonnes were produced and higher production is expected in the future. According to the Botswana Chamber of Mines Market capability study, potential exists for up to 24 new mines producing over 190 million tonnes per year.

  • The Mmamabula and Morupule coalfields have the greatest potential for new mines (9 each).
  • Current resource holders have plans to produce over 115 million tons per year of coal for export with room for growth.
  • The coal intended for Power Generation (75 million tons per year) could sustain a power industry with a capacity of 15 GW of power for domestic and regional consumption.

Incentives to Invest in Botswana Coal

  • Centrally located in SADC region
  • The SADC region is experiencing a deficit in electricity supply
  • Botswana has large easily accessible coal resources
    • An abundant coal resource allows for efficient localised power production and competitively priced electricity
  • Easy Distribution via the Southern African power pool (SAPP) from Botswana
    • SAPP is an extensive network of electricity infrastructure in the region, enabling export of electricity to SADC countries.
  • Domestic beneficiation of coal
    • Potential expansion of the coal value chain.
  • Africa’s Best Mining Destination
    • According to the Fraser Institute Annual Survey of Mining Companies, Botswana remains the preferred mining and minerals investment destination in Africa

Other Opportunities

Soda Ash

Opportunity 1: Chromium Production

For the production of pure chromium, the iron has to be separated from the chromium in a two-step roasting and leaching process. The chromite ore is heated with a mixture of calcium carbonate and sodium carbonate in the presence of air. The chromium is oxidized to the hexavalent form used in stainless steel, other alloys and steel plating in the car industry.
For more information on this opportunities visit:http://www.bitc.co.bw/bitc-investor-handbook

Mines and Exploration

Coal deposits are available for direct purchase and investment at competitive levels due to the global financial crisis, which has led to lower valuations of the resource.

Power Stations Power Distribution Infrastructure

Current and future forecasts for regional and domestic electricity demand show that there is increased potential for distribution infrastructure as new power projects are completed.

Rail and Rolling Stock

With the need to supply coal to regional and international customers, Botswana export infrastructure requires investment, particularly railroads and rail stock.

By 2016 Eskom (South Africa) will need an additional 60 million tons per year and India an additional 200 million tons per year, demonstrating regional and international demand for coal.

For more information on the Opportunities in Botswana’s Mining sector, contact the BITC or the Botswana Chamber of Mines at www.bcm.org.bw or +267 3914685.

Opportunities in this Sector

See below for the opportunities in this Sector accross various districts in Botswana...


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