Republic of Botswana: State of the Mineral Industry and Investment Opportunities in Botswana Hosted by Tiyapo Hudson Ngwisanyi, CEO, Geological Survey Mining On Top: Africa - London Summit 24-26 June 2014 | London

1. MINING ON TOP: AFRICA-LONDON
SUMMIT, June 2014
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STATE OF THE MINERAL INDUSTRY AND
INVESTMENT OPPORTUNITIES IN IN BOTSWANA
Tiyapo Hudson Ngwisanyi
Director
Department of Geological Survey
Ministry of Minerals, Energy and Water Resources

2. Pre Independence Era
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3. 2
Botswana : at a glance
impressive track record of good governance and
economic growth supported by prudent
macroeconomic and fiscal management,

At the centre of Southern Africa & SADC region
Area: 582,000 sq. km.
Population (2011): 2.031 million.
Nominal GDP (2012): $14.50 billion.
Real GDP growth rate (2012): 4.2%, (2011): 6.1%.
Per capita nominal GDP (2012): $7,650
.
Natural resources: Diamonds, copper, nickel, coal, soda
ash, salt, gold.
Sources of Government Revenue
SACU largest share (34%) in 2012/13, first time since
1970’s, Mineral’s share declining: fell from 48% in
2006/07 to 29% in 2012/13

4. INTERNATIONAL RANKINGS
• Corruption Perception Index – Transparency International (30/177) 2013
• The Global Peace Index – Vision of Humanity (32/162) 2013
• Mining Report – Fraser Institute (17/93) 2011/2012, (24/112) 2013
• Index of Economic Freedom- Heritage Foundation/WSJ (30/185) 2013
• World’s Best Countries Index- Newsweek
• The Global Enabling Trade Index- World Economic Forum (54/132) 2012
• Doing Business Report (World Bank) 2013 Rank =65/189, 2014 Rank = 56
• Democracy Index- Economist Intelligence Unit (33/167) 2011
• Human Development Index- UNDP (118/187) 2011
• Global Competitiveness Index- World Economic Forum (66/133) 2013
• Credit Ratings - Moody’s (A2) 2013
• Credit Ratings - Standard and Poor’s (long term: A-, short term: A-2) 2013
• Mo Ibrahim Index of African Governance (2 /52) 2012, (2/52) 2013
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5. Uncertainty concerning existing regulations
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Fraser Institute – Survey of Mining Companies 2013

6. 1. Maximize the economic benefits for the nation while
enabling private investor to earn competitive returns.
– We fully appreciate the concept and practice of internal rate of
return in that enterprises are not charitable organisations but
adapt corporate social responsibility policies as they thrive.
– We have no restrictions on the repatriation of profits
because there are no exchange controls.
– Low level of taxation and
– prudent economic management by Government.
2. Create a competitive environment to stimulate private
sector investment in mineral exploration and exploitation.
– Geological data from previous exploration work freely
availably at the National Geoscience Information center
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Minerals Policy Objectives

7. 3. Encourage linkages with the rest of the economy to
expand value addition activities.
– Where economically feasible beneficiation and downstream
activities should be done in Botswana to facilitate economic
diversification, e.g for diamonds we attracting companies to
relocate to Botswana to cut and polish, provide support service
and trade polished and rough diamonds in order to create a
diamond trading centre which will out-live the mining operations.
– Suppliers of consumables such as chemical reagents for
processing plants and equipment spares are encouraged to setup
businesses in the country.
4. Generate employment and training for Botswana’s citizens
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Minerals Policy Objectives

8. 5. Safeguard the environment
– mining operations are required to operate in accordance with good
mining industry practice, to preserve in as far as is possible the
natural environment, minimize and control waste or undue loss of or
damage to natural and biological resources.
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Minerals Policy Objectives

9. Investment Climate
 Political stability
 Safety and security
 Corruption
 Top sovereign credit rating
 Foreign exchange policy
 Stable inflation
 Taxation
 Information and communication technology (ICT)
 Infrastructure
 Enforcing contracts
 Trading across borders
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10. Mineral Investment Climate
• Favourable Geological Environment
• Progressive Mining Code
• Simplicity and Predictability of Mineral
Legislation
• Security of Tenure
• Commitment to Customer Satisfaction
• PPP
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11. EXPLORATION INTEREST IN BOTSWANA
• There are currently
>1000 PLs for all
minerals
• Though exploration
expenditure has
declined from the
2007 levels there are
signs of recovery
• PL overlaps allowed
• PL map (all)
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12. Availability of Geodata
The Department of
Geological Survey is the
custodian of all
geoscience data
collected in Botswana
By
Government
Exploration companies
Researchers
• Analogue
• digital
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13. Geological Data
1:1,000,000 Geological
map (entire country)
1:250,000 (western
Botswana)
1:125,000 (QDS)
(eastern Botswana)
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14. GEOPHYSICAL DATA
• Reconnaissance
aeromagnetic survey at
4km and 1km line
spacing
• Detailed high resolution
aeromagnetic and
radiometric surveys at
200 – 250m line
spacing
• Private sector surveys
at 50 – 100m line
spacing
• Radiometric data
covering eastern
Botswana
• Gravity - countrywide 13

15. GEOLOGICAL CONTEXT
• Oldest rock masses in Botswana constitue the
Archaean age “basement” which crop out only in the
east of the country
• Subdivided into Kaapcaal Craton, Zimbabwe Craton
and Limpopo Belt
• Composed mainly of granitoid lithologies
• Also presence of Archaean igneous intrusions
(Kanye Volcanic Formation, Gaborone Granite, etc)
• 75% of Botswana’s surface is underlain by
Phanerozoic successions of the Karoo Supergroup
and Kalahari beds
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16. 15
Structural Provinces & Tectonic Units
Carney, Aldiss & Lock, 1994
Kaapvaal
craton
Zimbabwe
craton
Kaapvaal
craton
Zimbabwe
craton
Kaapvaal
craton
Kaapvaal
craton
Zimbabwe
craton
Zimbabwe
craton
Ma Lithostratigraphic units Period Era Eon
1.8 Kalahari Quaternary Cenozoic
65
Kalahari Tertiary
144
kimberlites Cretaceous
203 Karoo Supergroup Jurassic
250
Karoo Supergroup
(+kimberlite)
Triassic
Mesozoic
298 Karoo Supergroup Permian
354 Karoo Supergroup Carboniferous
416 Devonian
440 Silurian
495 Ordovician
545 kimberlite Cambrian
Palaeozoic
Phanerozoic
1000
Ghanzi – Chobe - Okavango Late
1600
Otse – Waterberg – Palapye
(+kimberlite)
Mid
2050
Olifantshoek – Okwa - Gweta Early
Proterozoic
2650
Transvaal Supergroup Vaalian
3100
Witwatersrand Randian
3600
Barberton - Kraaipan Swazian
Archaean

17. 16
Kaapvaal
craton
Zimbabwe
craton
1.3% Cu – 131Mt,
3%-Pb-Zn-25Mt,
3.5Mt-Ag
stratabound Cu-Ag at Ngwako
Pan
minor Cu-Au, mica & Sn in
Zimbabwe
Metals Potential
Gold in greenstones
2.4%-Ni/Cu in basic
magmatic rock
Ni/Cu in basic
amphibolite-
30Mt
Gold in
greenstones
Transvaal Super group
Stratabound Iron & Manganese
Molopo Farms Complex
(Bushveld Complex
analogue) Platinum Group
Elements

18. Diamond in Kimberlite
(various ages)
after Norman Lock, 2006
Kaapvaal
craton
Zimbabwe
craton
Kaapvaal
craton
Zimbabwe
craton
Jwaneng
Intra-Karoo
(±240Ma)
Mabuasehube
Mid - Late
Proterozoic
Martin’s Drift
Proterozoic
(±1200Ma)
Mochudi/
Mosomane
Proterozoic
(±1200Ma)
Tsodilo / Orapa /
Gope / Okwa /
Kokong
Cretaceous
(±90Ma)
Tsabong /
Lekgodi
Cretaceous
(±90Ma)
Sikwane
Cambrian
(±600Ma)
Cambrian
(±500Ma)

19. Coal Potential
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• Botswana has extensive, and
largely unexploited, coal
resources which when developed
can form part of the
Government’s effort to diversify
the economy.
• Known coal resources are of the
order of 212 billion tonnes
• Current coal mine (Morupule Coal
Mine) expanded to produce just
under 4.0 mtpa is insignificant in
comparison to these resources
endowment
• The demand for coal-for-energy
has increased significantly
nationally, regionally and
internationally

20. Options for utilisation of Botswana coal
• Coal exports
• Domestic power
• Export power
• Coal-to-liquids
• Coal-to-gas
• Coal bed methane
Fertiliser -
Producing
nitrogen-based
fertilisers from
coal, etc.
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21. 20
Base Metals Industry Review
• There are 4 licensed base metal mining operators in Botswana
– BCL Limited: Nickel/Copper
– Tati Nickel Mining Company: Nickel/Copper
– Messina Copper: Copper
– Discovery Metals : Copper & Silver
• Botswana has been mining copper and nickel for more than three
decades on the mineralization in the extensive greenstone belts covering
much of the East and North East of Botswana. (BCL Limited Mines and
Tati Nickel Mining Company Mines)
• The strengthening of copper prices prior to the current global financial
crisis has led to renewed interest in the other copper deposits in the
North Eastern part of the country as well as those found in the Ghanzi
ridge in the west.
• Improvement of the road infrastructure in the western part of the country
has the potential to increase the prospectively of these deposits.

22. The Enabling Mining Environment for
Investment
• The Mining Code
The Mines and Minerals Act, 1999, the centrepiece of
Botswana Mineral Legislation
• Mineral rights vested in the State
• Law provides for security of tenure and predictability
• Virtually an automatic transition from a Prospecting
License to a Mining License
the Minister shall ensure, in the public interest, that the
mineral resources are investigated and exploited in the
most efficient, beneficial and timely manner

23. 22
Mineral concessions are required to
explore for or mine minerals
Four types of mineral concessions
Prospecting license
Retention license
Mining license
Minerals permit
Legislation

24. 23
Prospecting Licences
Duration: not more than 3years
Renewals: not more than 2 renewals,
each not exceeding 2 years
Area ≤ 1,000 km2 per licence
Considerations:
• Adequate financial resources, Technical
competence and expertice
• Satisfactory Proposed programme of
prospecting operations

25. 24
Retention Licences
 Conditions
• Feasibility study carried out
• Approved prospecting programme completed
 Duration: not more than 3 years
 Renewal: Once only for a period not exceeding 3
years
Mining Licences
 Duration of up to 25 years
 Renewable for up to another 25 years

26. 25
Mineral Permits
For small scale mining operations
For any minerals except diamonds
Area not exceeding 0.5 km2 per permit
Permits for industrial minerals granted to
citizens only
Duration: not more than 5 years
Renewal: for a period not exceeding 5
years at a time

27. 26
Government Investment
• No intention for day-to-day management of
mining operations
• Non-diamond Minerals
– Option for a working interest participation of
up to 15%
• Diamonds
– Level of participation reached through
negotiations
– Negotiations initiated by application for a
mining licence
– Good faith negotiations, failure not foreseen
• Government not a majority shareholder

28. 27
Financials
• Royalties - %age of gross market value
Mineral Type Percentage
– Precious stones 10%
– Precious Metals 5%
– Other Minerals 3%
• Lease rentals
– P100/km2 or part thereof

29. Conclusions
• Botswana is the investment destination of choice
in:
– Minerals Prospecting
– Mining
– Downstream diamond beneficiation
– Transportation in mining
– Power generation
– Transmission infrastructure
– Renewable Energy Technologies
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30. 29
Ministry of Minerals, Energy and Water Resources
P/Bag 0018
Gaborone, Botswana
Tel: +267-365-6600
Fax: +267-372-738
Permanent Secretary bpaya@gov.bw
Deputy Permanent Secretary (Water &
Energy)
kabi@gov.bw
Deputy Permanent Secretary (Minerals)
Director of Geological Survey
nmmolawa@gov.bw
tngwisanyi@gov.bw
Contacts