Precious Metals Mining in Botswana to 2020 – a Focus on the Diamond Industry

The country’s rough diamond production is expected to reach 25.3 million carats by 2014 and 32.2 million carats in 2020. In 2009, the county’s diamond industry declined sharply due to the global economic crisis, emphasizing the country’s reliance on export demand, leading to a fall in rough diamond production.

Botswana’s rough diamonds are mostly exported to the US, Europe and Japan. These three destinations made up 84.7% of the country’s total exports in 2012.

Scope

The report contains an overview of Botswana's diamond mining industry, together with the key growth factors and restraints affecting the industry. It also provides information about reserves, production, trade, competitive landscape, major active projects and the country's mining fiscal regime.

Key Highlights

• Botswana is the world’s largest producer of diamonds by value, with diamonds accounting for 81% of total minerals contribution to country’s GDP and 98% of mineral revenue payable to the government in 2013.

• The country’s rough diamond production is estimated to reach 25.3 million carats by 2014 and 32.2 million carats in 2020.

• The relocation of the Diamond Trading Company (DTC) from London to Botswana in 2013 is an important step towards improvements in economic growth, job opportunities and investment.

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

Reasons to buy

Gain an understanding of Botswana's diamond mining industry, the relevant drivers and restraining factors, reserves, historical and forecast production, trade and the fiscal regime.

Companies mentioned

Debswana Diamond Company (Pty) Ltd

Lucara Diamond Corp.

Table of Contents

1 Executive Summary

2 Precious Metals Mining In Botswana

2.1 Country Overview

2.2 Mining Overview

2.3 Precious Metal Mining in Botswana – Drivers

2.4 Precious Metals Mining in Botswana – Restraints

3 Diamond Mining In Botswana – Reserves, Production and Trade

3.1 Reserves by Grade and Geographic Regions

3.2 Historical and Forecast Production

3.3 Total Production by Region

3.4 Total Production by Major Mines

3.5 Total Production by Mining Method

3.6 Major Exploration and Development Projects

3.7 Exports

3.8 Botswana vs Global Rough Diamond Production

4 Competitive Landscape

4.1 Debswana Diamond Company (Pty) Ltd (Debswana)

4.2 Lucara Diamond Corp. (Lucara)

5 Fiscal Regime

5.1 The Botswana Mining Industry – Governing Bodies

5.1.1 Ministry of Minerals, Energy and Water Resources

5.1.2 Department of Geological Survey

5.1.3 Department of Water Affairs

5.1.4 Departments of Mines

5.1.5 Department of Environmental Affairs (DEA)

5.2 The Botswana Mining Industry – Governing Laws

5.2.1 Mines and Mineral Act, 1999

5.2.2 Explosives Act, 1962

5.2.3 Unwrought Precious Metals, 1944

5.3 The Botswana Mining Industry – Mining Licences

5.3.1 Prospecting License

5.3.2 Retention license

5.3.3 Mining license

5.4 The Botswana Mining Industry – Rights and Obligations

5.4.1 Prospecting holder rights

5.4.2 Prospecting holder obligations

5.4.3 Retention holder rights

5.4.4 Retention holder obligations

5.4.5 Mining license holder rights

5.4.6 Mining license holder obligations

5.5 The Botswana Mining Industry – Key Fiscal Terms

5.5.1 Royalty rate

5.5.2 License fees

5.5.3 Corporate Income Tax

5.5.4 Capital Gains Tax

5.5.5 Withholding Tax

5.5.6 Capital Allowance

5.5.7 Loss Carry Forward

5.5.8 Value Added Tax

6 Appendix

6.1 What is This Report About?

6.2 Methodology

6.3 Secondary Research

6.4 Primary Research

6.5 Contact GlobalData

6.6 About GlobalData

6.7 GlobalData’s Services

6.8 Disclaimer

List of Tables

Table 1: Diamond Mining in Botswana – Rough Diamond Production (Million Carats), 2000–2020

Table 2: Diamond Mining in Botswana – Major Active Mines, 2014

Table 3: Diamond Mining in Botswana – Major Development Projects, 2014

Table 4: Diamond Mining in Botswana – Rough Diamond Exports (Million Carats), 2004–2020

Table 5: Precious Metals Mining in Botswana – Debswana Diamond Company Ltd, Major Projects, 2014

Table 6: Precious Metals Mining in Botswana – Lucara Diamond Corp, Major Projects, 2014

Table 7: The Mining Industry in Botswana – Mineral Royalty Rates (%), 2014

Table 8: The Mining Industry in Botswana – Depreciation Rates (%), 2014

List of Figures

Figure 1: Precious Metals Mining in Botswana – Diamond Revenue (2005–2029*)

Figure 2: Diamond Mining in Botswana – Rough Diamond Production (Million Carats), 2000–2020

Figure 3: Diamond Mining in Botswana – Rough Diamond Exports (Million Carats), 2004–2020

Figure 4: Diamond Mining in Botswana – Botswana vs Global Rough Diamond Production (%), 2012

Figure 5: Location of Diamond Mining Companies in Botswana

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