Botswana: Locals Should Own 24% Stake in Mines
August 08, 24
(IDEX Online) - Botswana, the world's biggest producer of non-sanctioned diamonds, is proposing legislation that would require all mining companies to sell a 24 per cent stake to citizens.
The government is currently entitled to purchase a 15 per cent share in any licensed mining operation, but generally does not exercise that right. In such cases it says a 24 per cent stake should be made available to the public.
It is planning an amendment to the current Mines and Minerals Act which says that "where government does not exercise its option of acquiring a 15 per cent working interest upon granting of a mining licence, the holder shall use his best endeavour to dispose the 24 per cent stake to citizens or citizen-owned companies".
The discovery of diamonds in Botswana in 1967 transformed the fortunes of a third world country and rough sales now represent three quarters of its foreign exchange earnings, although sales almost halved in the first half of this year ($1.287bn) according to newly-released figures from the country's central bank.
Pic shows Orapa mine, Botswana.