Diamonds to Be Mainstay of Botswana Mining
Source: Scrap Monster (6/23/11)
"Diamonds, copper and nickel earn over three-quarters of the country's export revenues."
Botswana is one of the major diamond producers in the world and the diamond output will remain the mainstay of Botswanan mining production, boosted by new projects.
Botswana remains the highest-rated African country in Business Environment Rankings for Q311, with a score of 66.7 points out of 100. The country has a stable political situation and a well-developed mining sector, backed up by a sound regulatory framework.
Moreover, tax rates remain relatively low on a regional basis and the country has relatively flexible labour regulations, which should also bolster growth. The positive view on Botswanan mining is shared by the influential Fraser Institute, which has placed Botswana in 14th place (out of 79 jurisdictions) in its Policy Potential index, as contained within its Survey of Mining Companies 2010/11, published in March 2011.
Exploitation of rich mineral reserves, especially diamonds, has been a significant driver of Botswana's economic growth. Diamonds, along with copper and nickel, are major focus areas in metal and mineral exploration, and earn more than three-quarters of the country's export revenues. More recently, coal and uranium have also emerged as key future revenue generators for the Botswanan mining industry.
It is estimated that the sector can show an average annual growth rate of nearly 10% over the 2011–15 period, with the industry reaching a value in excess of BWP60B (US$10B) by 2015.