Business Monitor International (BMI) recently released a report which indicates that Botswana remains one of the countries with the best regulated and strongest performing mining sectors in Africa. The BMI reports also states that Botswana will retain this enviable position over the coming years. According to the report, Botswana’s mining sector will largely be driven by the diamond industry, though other metals and minerals will also see increasing prominence, especially coal, copper, and nickel. Additionally, uranium mining is likely to take off over the next decade.
The report goes on to reveal that Botswana’s mining sector has significant potential for further growth on account of large diamond, copper and coal deposits, as well as numerous successful exploration projects.
“In particular, we highlight strong growth potential for the country’s coal sector and the fast growth from a low base will be driven by companies including Anglo American, Exxaro, African Energy and CIC Energy, bringing substantial investment into Botswana’s nascent coal sector.”
“We maintain a constructive outlook for Botswana’s mining sector over our forecast period to 2019. Diamonds will remain the mainstay of Botswana’s mining sector, boosted by new projects planned by Debswana, Gem Diamonds and Lucara Diamond Corp,” it reads. “Yet we expect coal will become an increasingly prominent component of the wider mining sector and forecast production will accelerate in the years ahead. Therefore we forecast the country’s mining industry value will see average annual growth of 4.0 percent to 2019, reaching a value of USD3.7billion by 2019.”
However the report also indicates that from the data that has been collected, some of the figures interpreting Botswana’s vast coal deposit seem inaccurate, and it cites that some of the figures might be over exaggerated. The Botswana Mining Report has been researched at source level and it features information on mining and commodity forecasts for metals, minerals and gems, covering all major indicators including reserves, production, exports and values. The report also analyses trends and prospects, national and multinational companies and changes in the regulatory environment. BMI’s Botswana Mining Report provides guidance to governments on industry strategies, service companies, company analysts and consultants, government departments, trade associations and regulatory bodies with BMI’s independent forecasts and competitive intelligence on the mining industry in Botswana.