Private sector must be given maximum freedom – Botswana Minister...

Private sector must be given maximum freedom – Botswana Minister

By: Martin Creamer

26th June 2012

GABORONE, Botswana (miningweekly.com) – The private sector must be given the opportunity to participate as freely as possible in mining, Botswana Minerals Minister Dr Ponatshego Kedikilwe said on Tuesday.

Kedikilwe, who addressed the Botswana Resource Sector Conference here, said that the Botswana government believed in creating an enabling environment for investors to make a return on their investments.

He said events in the world had shown that the decision of Botswana to abolish exchange control had been the correct one.

He urged the international gathering present to offer their inputs on maximizing Botswana's competitiveness as a mining investment destination.

Company tax had been lowered to 22% from the previous 25% and a lower fiscal burden had been placed on investors.

"Returns are critical and the issue is to keep the balance."

Kedikilwe said that in order to implement its economic diversification, the Botswana government was prepared to amend or even abandon past unsuccessful policies.

Minerals Ministry priorities were in the development of coal and diamonds.

Diamonds were poised to play a far more catalytic role in the economy than in the past and coal provided excellent options for export, electricity generation, cement manufacturing and petrochemicals.

To unlock Botswana's coal resources, the government, Kedikilwe told Mining Weekly Online, had resolved to establish a coal development unit to facilitate the development of the entire coal value chain, beginning with mining and advancing to transportation and storage at ports, for shipping.

The unit's mandate was to undertake projects that accelerate coal monetisation.

A new 600 MW power station was close to commissioning to provide power for mining and three new dams would provide 500 m3 of additional water.

Kedikilwe said that Botswana, as a diamond-dependent economy, was yet again traversing through turbulent global times and faced yet more major diamond-market challenges.

The country was thus closely monitoring the threat of a possible double-dip recession fuelled by eurozone problems.


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