Botswana has implemented a new regulation requiring mining companies to sell a 24% stake in new concessions to local investors if the government decides not to purchase the stake, the Ministry of Minerals and Energy announced on Friday.
The rule, proposed last year as part of amendments to the Mines and Minerals Act, officially came into effect on 1 October. Previously, 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.
The new regulation seeks to increase local participation in the country’s mineral wealth while promoting value addition and ensuring companies establish environmental rehabilitation funds.
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As the world’s leading diamond producer by value and a growing copper mining hub, Botswana aims to strengthen domestic investment in its extractive industries.
During parliamentary debates on the amendment, the former mines minister noted that local investors could purchase stakes in mining concessions with support from domestic pension funds.
