Botswana not planning mine grabs, Minister confirms
Botswana has assured that it is not contemplating nationalising mining operations or buying out private mining investors to ensure local ownership of the sector.
Doing so would diminish the attractiveness of the mining sector to potential investors and lead to divestment by existing investors, Minerals, Energy and Water Minister Kitso Mokaila said recently. He was responding to a question from an MP who sought clarity on whether Botswana planned to push for local ownership of the mining sector. The MP made particular reference to Debswana, a 50:50 joint venture between De Beers and the Botswana government.
Apart from tarnishing the country's reputation as a top mining investment destination, Mokaila said, nationalising the mining industry would eventually stagnate development and productivity in a sector, which remains the biggest contributor to gross domestic product.
Further, Mokaila said the value of the De Beers stake in Debswana was unknown, as the company's assets had never been valued since
it started operating in the 1950s. He said valuing the company would be a lengthy and strictly procedural process whose outcomes would depended on factors beyond government's control.
“The process of establishing [the value] is determined by a number of factors, including willingness of the other party to sell.”
Although Botswana maintained a policy of ‘preferential treatment’ with regard to the employment of locals in
skilled-worker categories in the mining industry, Debswana continued to employ foreigners, owing to a lack of suitably qualified and
experienced citizens.
"Every function in the mine has succession plans which cover localisation of expatriate-held positions, and these are reviewed annually. Although we [at Debswana] continue to use expatriate labour, extensive efforts are under way to capacitate citizens through training programmes and worker secondments to international companies,” the Minister said.
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