Botswana has implemented a new rule that requires mining companies to sell a 24% stake in new concessions to local investors if the government chooses not to purchase the stake, the country’s Ministry of Minerals and Energy said on Friday.
As per Reuters, the regulation was first proposed last year as part of draft legislation, but authorities had not previously specified when it would come into effect.
Under the previous Mines and Minerals Act, the government had the right to acquire a 15% shareholding in any mining concession upon licensing, with the option to take a higher stake in diamond projects.
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Botswana, the world’s leading diamond producer by value and an emerging copper mining hotspot, confirmed that the rule requiring 24% local ownership in mining projects officially came into force on October 1.
The Ministry of Minerals and Energy said in a statement that, in addition to increasing local ownership of the country’s mineral wealth, the law is also intended to promote value-adding activities within Botswana and ensure that mining companies establish environmental rehabilitation funds.
When the amendment to the Mines and Minerals Act was debated in parliament, the former mines minister said local investors could acquire stakes in mining concessions with assistance from domestic pension funds.
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Image Credit: Africa.com
