Botswana, the world’s leading producer of non-sanctioned diamonds, is introducing new legislation requiring mining companies to sell a 24 percent stake to citizens. Currently, the government can buy a 15 percent share in any licensed mining operation but usually does not. If the government does not take this option, the new law will mandate that the 24 percent stake be offered to the public or citizen-owned companies.
The proposed amendment to the Mines and Minerals Act states that if the government does not exercise its right to a 15 percent share when granting a mining license, the mining company must try to sell a 24 percent stake to citizens or citizen-owned companies.
Diamonds discovered in Botswana in 1967 significantly boosted the country’s economy. Currently, diamond sales account for three-quarters of Botswana’s foreign exchange earnings. However, sales nearly halved in the first half of this year, totaling $1.287 billion, according to recent figures from the central bank.
