Botswana enforces a new mine ownership rule of 24 percent local ownership

Botswana’s mines ministry announced on Friday that the country has implemented a new law that requires mining corporations to sell a 24 percent stake in new concessions to local investors in the event that the government decides not to purchase the stock.

The administration has not specified when the rule would go into force, despite it being included in draft law last year.

Once licensed, Botswana’s government was able to purchase a 15% stake in any mining concession under the Mines and Minerals Act, with the possibility of acquiring a larger stake in diamond operations.

The nation in Southern Africa is the world’s largest producer of diamonds in terms of value and is also a developing hub for copper mining.

According to a statement from the Ministry of Minerals and Energy, the regulation mandating 24% local ownership in mining projects went into effect on October 1.

The law intends to encourage local value-adding industries, guarantee mining corporations set up environmental restoration funds, and increase local ownership of the nation’s natural riches.

During the debate of the Mines and Minerals Act modification in parliament, the previous minister of mines stated that domestic pension funds might be used to purchase concession holdings by local investors.