Botswana’s Mining Fiscal Regime: H1 2014

The mining industry in Botswana is governed by the Ministry of Mineral, Energy and Water Resources (MMEWR) and other main sub-departments such as the Department of Geological Survey (DGS), the Department of Water Affairs (DWA) and the Department of Mines (DoM).

Scope

The report outlines Botswana's governing bodies, governing laws, mining licenses, rights and obligations and key fiscal terms which includes royalty rates, license fees, corporate income tax, capital gains tax, withholding tax, capital allowances, loss carry forward and VAT.

Key Highlights

• The Mines and Mineral Act, 1999 regulates the law related to the mines and minerals sector. The act provides issuance, renewal, renewal and termination of mineral concessions, provides for the payment of royalties, and covers matters incidental to and connected to the foregoing.

• The MMEWR is responsible for the coordination of the development and operation of the energy, water and mineral sectors of the country.

• The DGS is responsible for the collection, dissemination, assessment, archiving and advice on all geo-scientific data related to the rock, mineral and water resources of the country.

• The DWA is involved in the assessment of plans relating to the development and maintenance of water resources for domestic, agriculture, commercial and industrial use in the entire country.

Reasons to buy

To get an overview of Botswana's mining fiscal regime.

Companies mentioned

Table of Contents

1 Executive Summary 1

2 The Botswanan Mining Industry – Governing Bodies 5

2.1 Ministry of Minerals, Energy and Water Resources 5

2.2 Department of Geological Survey 5

2.3 Department of Water Affairs 5

2.4 Departments of Mines 5

2.5 Department of Environmental Affairs (DEA) 5

3 The Botswanan Mining Industry – Governing Laws 6

3.1 Mines and Mineral Act, 1999 6

3.2 Explosives Act, 1962 6

3.3 Unwrought Precious Metals, 1944 6

4 The Botswanan Mining Industry – Mining Licences 7

4.1 Prospecting Licence 7

4.1.1 Duration 7

4.2 Retention license 7

4.2.1 Duration 7

4.3 Mining license 8

4.3.1 Duration 8

5 The Botswanan Mining Industry – Rights and Obligations 9

5.1 Prospecting Holder Rights 9

5.2 Prospecting Holder Obligations 9

5.3 Retention Holder Rights 9

5.4 Retention Holder Obligations 9

5.5 Mining License Holder Rights 9

5.6 Mining License Holder Obligations 10

6 The Botswanan Mining Industry – Key Fiscal Terms 11

6.1 Royalty rate 11

6.2 License fees 11

6.3 Corporate Income Tax 11

6.4 Capital Gains Tax 11

6.5 Withholding Tax 11

6.6 Capital Allowance 11

6.7 Loss Carry Forward 12

6.8 Value Added Tax 12

7 Appendix 13

7.1 What is this Report About? 13

7.2 Methodology 13

7.3 Secondary Research 13

7.4 Primary Research 13

7.5 Contact GlobalData 14

7.6 About GlobalData 14

7.7 GlobalData’s Services 15

7.8 Disclaimer 16

List of Tables

Table 1: The Mining Industry in Botswana – Fiscal Regime Terms and Other Taxes 1

Table 2: The Mining Industry in Botswana – Mineral Royalty Rates (%), 2014 11

Table 3: The Mining Industry in Botswana – Depreciation Rates (%), 2014 12

List of Figures

Figure 1: The Mining Industry in Botswana – Commodity Mines at Different Stages 1

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