As well as diamonds - its main asset - Botswana has copper, nickel, soda ash and gold.

Mines: the backbone of the economy
The 1999 revised investment code has favoured foreign investment and emboldened exploration activity

Once an economy based on agriculture, Botswana’s trajectory was revolutionised by the discovery of diamonds in 1967. Since then the mineral rich region has served itself well, allowing the country to build a stable economy centred on mining. This sector is now diversifying into businesses specialising in gold, nickel, copper, soda ash, coal and diamonds. Globally renowned companies such as De Beers, LionOre, African Copper, African Diamonds and Gallery Gold are heading the constant effort to explore and improve their services while securing their place in the country’s economic upturn.

Although Botswana has recognised the difficulty of entering such a sector - due to global pricing and the need to constantly upgrade techniques - they have pulled ahead of developed countries to be placed third in the world mineral production rankings, after Australia and Canada. Recent technological advances, such as those of the Tati Nickel Mining Company, have attracted attention among the mineral community, as has the discovery of new sites in both the diamond and gold industry. In fact, several diamond-producing plants have had their licences extended from twenty to thirty years. One such example is Mupane Gold Mining, ending its first years of production with 100,000 ounces of gold per annum. Charles Tibone, Minister of Mineral, Energy and Water Resources, says, “Botswana has been ranked globally as the leading mineral sector, operating in line with a world-class environmental record.” Without a doubt, the region has created a haven for extracting highly lucrative and in-demand products from its land.

	Charles Tibone Minister of Minerals, Energy and Water resources
	‘For companies to raise money on the LSE the environment has to be good’

Diversification seems to be a term directly related to a country where the minerals themselves are plentiful in number and type. Scientific studies are being carried out to explore the development of any non-diamond prospecting within the country’s available resources. The Who’s Who of the mining industry in Botswana begins with the Debswana Diamond Company, owned in equal shares by the government and De Beers. Tati Nickel Mining Company, along with BCL Limited, are the leaders in copper-nickel ore production. Following these companies are Botswana Ash, producers of soda ash, and Morupule Colliery Limited, the only coalmine currently operating in Botswana. All of these institutions contribute to the monitoring of pollutants in the air, water, soil and vegetation. Combined with the efforts of the government’s own environmental laboratory, the overall package of a socially concerned state has created an alluring investment climate.

It comes as no surprise that investors from all over the world are coming to Botswana to ensure the world’s mineral demand is met in growing markets such as China and India. Mr Tibone stated in a recent interview: “Some of the companies that are prospecting here are raising their money on the London Stock Exchange, so for them to be able to raise that money, the environment has to be good.” Of course this in turn is encouraging Botswana to build infrastructure that is attractive to teams scouting the area, and then to allocate funds to support such projects. Schools, hospitals and social programmes are all on the agenda for the future, which only stabilises an already well-supported sector.

Diamonds represent 45 per cent of GDP and 77 per cent of exports earnings

Receiving full marks in the mining area, Botswana also receives an honourable mention in the recognition of the problems inherent in such an endeavour. Energy and water shortages are being aggressively addressed and Mr Tibone promises advances in the near future in the field of local energy production, instead of imports from other countries. Lack of water is a constant problem and more research is needed to build a buffer to protect against the cycle of drought and strong, arid winds that characterise the country’s climate. The extreme dedication Botswana has put into educating its population about HIV/AIDS, as well as providing help to those affected, is also a sign of unity and coherence. It all adds up to a team effort leading to a prosperous and unified future.