Botswana Proposes Law to Grant Locals 24% Ownership of Mining Companies

Botswana has proposed a law requiring mining companies to sell a 24% stake to locals if the government does not exercise its option to acquire this share upon licensing. The southern African country is rich in precious natural resources and is a major diamond producer. The bill, set to be tabled in front of Botswana’s parliament by Mines Minister Lefoko Moagi, seeks to amend the existing Mines and Minerals Act, which currently allows the government to acquire a 15% stake in mining projects. However, the government has not exercised this option in recent transactions, including Lucara’s acquisition of the Karowe Diamond Mine, the purchase of the Khoemacau copper mine by China’s MMG, and the recently opened Motheo Copper Mine owned by Australia’s Sandfire. The proposed law reflects Botswana’s ongoing efforts to increase local participation in its lucrative mining sector.

SOURCE: BUSINESS INSIDER