MODULE 3.2.

-Assess the development of mining in Botswana

3.2.1 Background of mining: Pre Colonial period (Toutswemogala and Domboshaba case
studies); Colonial times (Gold mining at Tati, Moshaneng, Matsitama 1930’s)

1. Pre-historic mining

The first evidence of pre-historic mining and local beneficiation is from ‘factory’
sites at outcrops of siliceous stone, such as along palaeo-lake shore lines of the
major pans and along some of the rivers containing Early (2Ma – 280,000 yrs ago)
to Middle Stone Age tools (280,000 – 20,000 yrs ago). Minerals, such as
specularite, limonite and later graphite were mined c. 2,000 BP in places like
Tsodilo Hills and used as pigment for rock paintings and decorative purposes.
Copper was mined near Dukwe and on the Matsitama and Tati Greenstone Belts
(AD 1,000 – 1,700) in the Francistown region on the Tati Greenstone Belt (1,000-
1,300 AD), and the main source of iron was the Tswapong Hills near Palapye with
some smelting sites dating back to c. AD 800-1,000. Mining gold started around
AD 1,200 in the Tati and Vuma Greenstone belts.

2. Historic mining and exploration (1867 – 1959)

Henry Harley found gold near the lower Tati River in 1867. A gold rush started at
the Tati settlement in 1868 and spread across the Tati Greenstone Belt from 1869
until 1872 after which many prospectors left for the diamond fields in Kimberley.
Mining resumed in 1881 and led to the establishment of Francistown in 1897, the
same year that the Cape to Bulaweyo railway line arrived there.

Post Independence period (Copper Nickel 1968, Coal 1973, Diamonds 1971 and
Soda Ash 1992)

Diamond mining
 The discovery of diamonds in the 1960s led to the development of the Orapa mine,
the world's largest open-pit diamond mine.
 The Botswana government and De Beers formed a joint venture called Debswana to
operate the mine.
 The government received a 15% equity stake, a 50-50 split of profits, and a royalty
based on production levels.
 The Orapa mine helped Botswana's economy grow rapidly between 1965 and 1995.
 Diamond revenues have funded schools, universities, and healthcare facilities.

Copper mining
 Copper mines have been developed in the Kalahari Copperbelt.

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  Copper companies have worked with the Tawana Land Board to acquire farms,
compensate farmers, and displace them.
 The displacement of farmers has led to the scattering of farmers and their families to
new land and vocations.
 The displacement of people has been described as a colonial legacy of control

3. Copper, Nickel, and Other Minerals

 Besides diamonds, Botswana also has significant deposits of copper and nickel. The
Selebi-Phikwe mine, which primarily extracted copper and nickel, played a
prominent role in the country's mining sector.
 However, copper and nickel mining in Botswana has faced challenges, such as
fluctuating global prices and a declining mineral resource base.

4. Coal and Other Extractive Industries

 Botswana also possesses large coal reserves, particularly in the Mmamabula and
Morupule areas. Coal is primarily used for domestic energy production, and
Botswana has been considering expanding coal exports, particularly to the growing
energy markets in Southern Africa.
 In addition to coal, the country has some gold and salt deposits, though these are
smaller compared to diamonds and copper/nickel.

3.2.2 EXAMINE THE LEGISLATION THAT GOVERNS MINING IN BOTSWANA

In Botswana, mining activities are governed by a comprehensive legal and regulatory

framework that ensures the proper management, exploitation, and environmental
protection of the country's mineral resources. The legislation governing mining is primarily
based on the Mining Act, but other laws, policies, and regulations also play critical roles in
ensuring the sustainable development of the sector.

1. The Mines and Minerals Act (No. 17 of 1999)

The Mines and Minerals Act is the primary piece of legislation governing the mining sector
in Botswana. It outlines the procedures for mineral exploration, mining rights, and the
responsibilities of operators, including both local and foreign entities. Some of its key
provisions include:

 Mineral Rights: The government owns all mineral resources in Botswana, and
individuals or companies wishing to extract minerals must apply for mining licenses
and leases. These rights are granted through a competitive bidding process and are
subject to approval by the Ministry of Mineral Resources, Green Technology, and
Energy Security.
 Licenses and Permits: The act provides for various types of licenses, including
exploration licenses, prospecting licenses, mining leases, and exclusive prospecting
licenses. The act details the application process, renewal conditions, and the rights
and obligations associated with each type of license.

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  Royalties and Taxes: The act specifies the payment of royalties on minerals extracted,
as well as taxes applicable to mining companies. The government has the authority to
adjust the tax rates and royalty structures depending on the economic context.

2. The Botswana Extractive Industries Transparency Initiative (BEITI)

BEITI is part of Botswana’s commitment to promoting transparency in the management of

mineral resources, particularly through the extractive industries sector. The initiative aims to:

 Ensure Transparency: By requiring mining companies to disclose payments to the

government, BEITI aims to promote transparency in the mining sector and prevent
corruption.
 Public Reporting: It ensures that revenue from mineral resources is publicly reported,
and the public has access to information regarding the amounts paid by mining
companies to the government.

3. The Environmental Impact Assessment Act (No. 10 of 2011)

This Act regulates the environmental aspects of mining operations in Botswana. Mining
companies must conduct Environmental Impact Assessments (EIAs) before starting any
significant mining activities. The Act outlines the processes for assessing, preventing, and
mitigating the environmental impact of mining projects. Key provisions include:

 EIA Requirement: All new mining projects must undertake an EIA to evaluate
potential environmental risks.
 Environmental Management Plans (EMPs): After conducting an EIA, mining
companies are required to submit an EMP to the Ministry of Environment, Natural
Resources Conservation, and Tourism to ensure sustainable environmental
management throughout the life cycle of the mine.
 Environmental Compliance: The act ensures that companies comply with regulations
to minimize negative environmental impacts, such as pollution, water contamination,
and land degradation.

4. The Diamond Industry Regulations

In addition to the Mines and Minerals Act, Botswana has specific regulations for the diamond
mining sector, as diamonds are one of the most significant minerals in the country. The
Diamond Trading Act and related regulations govern the exploration, mining, and trading of
diamonds. Some key features include:

 De Beers and Debswana Partnership: Since Botswana's government owns a stake in

Debswana Diamond Company (a joint venture with De Beers), the regulations
emphasize transparency and fairness in diamond mining operations.
 Regulation of Diamond Trading: The regulations ensure that diamonds are traded
through approved channels and maintain strict controls over the export and sale of
rough diamonds.

5. The Environmental Protection Act (No. 8 of 2011)

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This Act complements the Environmental Impact Assessment Act and focuses on general
environmental protection. It mandates mining companies to ensure that their operations do
not negatively affect the environment and requires them to:

 Waste Management: Establish systems to manage waste generated by mining

activities, including hazardous materials.
 Pollution Control: Take measures to prevent air, water, and soil pollution caused by
mining activities, including measures to mitigate noise and dust.
 Rehabilitation of Land: Companies are required to rehabilitate mining sites after
operations end, restoring land to a state suitable for other uses.

6. The Public Procurement and Asset Disposal Act (No. 14 of 2001)

While not specific to the mining sector, this Act governs procurement processes in Botswana,
including contracts related to mining operations. It aims to ensure:

 Transparency and Accountability: It ensures that mining companies, including foreign

firms, adhere to transparent and competitive procurement practices when engaging
with local contractors, suppliers, and service providers.
 Government Contracts: It applies to public-private partnerships, including those that
involve government participation in mining operations.

7. The Labour and Industrial Relations Act (No. 16 of 1982)

This Act governs the employment conditions in the mining industry and ensures the
protection of workers' rights. Key provisions include:

 Health and Safety Standards: The Act includes regulations on occupational health and
safety, ensuring that mining companies implement safety measures to protect the
well-being of their employees.
 Labor Unions: The Act allows the formation of labor unions to protect workers'
rights, including those in the mining sector.
 Dispute Resolution: The Act provides a framework for resolving disputes between
employers and employees.

8. Mineral Processing and Beneficiation Policies

Botswana has also developed policies related to mineral beneficiation and value addition. The
government seeks to encourage the processing of minerals within the country, including the
cutting and polishing of diamonds and the refining of base metals. This policy aims to:

 Diversify the Economy: By adding value to raw minerals within Botswana, the
government aims to create more jobs and increase the economic contribution of the
mining sector.
 Incentives for Beneficiation: The government offers incentives for companies to
establish processing and beneficiation operations in Botswana, aiming to create a
local industry that maximizes the value of extracted minerals.

9. The Mines Safety Regulations

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These regulations are designed to ensure the safety and health of workers in the mining
industry. They cover:

 Safe Mining Practices: Requirements for safe operation of mining equipment,

handling hazardous materials, and working in underground mines.
 Emergency Preparedness: Provisions for emergency response plans in the event of
accidents, including fire, explosions, and other workplace hazards.

3.2.3 ASSESS THE IMPACT OF MINING IN BOTSWANA AFTER INDEPENDENCE

SOCIO-ECONOMIC BENEFITS/CHANGES

 The Botswana government used its diamond revenues prudently, investing in

infrastructure, education, and healthcare, helping to achieve high levels of human
development and a relatively high standard of living.
 Botswana's stable governance and transparent policies towards mining attracted
international investment. The country has used the wealth from its mining sector to
diversify its economy, though it remains heavily reliant on diamonds.
 Labor Migration: While mining created jobs for many locals, some mines also
attracted migrant workers from neighboring countries, creating a more diverse labor
force.

1. Economic Growth and Stability

 Rapid Economic Growth: The discovery of diamonds in the 1970s transformed
Botswana from one of the poorest countries in Africa into one of the continent's
most prosperous nations. The mining sector, particularly diamonds, has been the
backbone of Botswana's economic growth. The country experienced one of the
highest growth rates in the world for several decades.
 Revenue Generation: Mining, particularly diamond mining, has been the largest
source of government revenue, contributing significantly to Botswana’s GDP, foreign
exchange earnings, and fiscal budget. The government’s prudent management of
mining revenues helped stabilize the economy and invest in infrastructure and social
services.
2. Job Creation and Employment
 Direct Employment: The mining sector became a major employer, providing
thousands of jobs, especially in diamond mining operations like Orapa and Jwaneng.
Mining companies also created jobs in other sectors, including construction,
transport, and maintenance services.
 Skills Development: The demand for skilled labor led to improvements in education
and training programs in Botswana. Local citizens received opportunities to acquire
technical and managerial skills in mining, with many Batswana (Botswana's people)
taking up roles in mine management and operations.

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  Labor Migration: While mining created jobs for many locals, some mines also
attracted migrant workers from neighboring countries, creating a more diverse labor
force.
3. Infrastructure Development
 Improved Infrastructure: Mining revenue allowed the government to invest heavily
in infrastructure development. Roads, electricity, water supply, and communication
networks were expanded, which in turn helped stimulate other sectors of the
economy.
 Urbanization: The growth of mining towns such as Orapa, Jwaneng, and Selebi-
Phikwe led to urbanization, with an increase in population and the development of
services such as schools, healthcare, and housing. These towns became economic
hubs, contributing to the broader economic development of the country.
4. Social Services and Human Development
 Investment in Education and Health: Botswana used its mining revenues to fund key
social programs. The education and health sectors saw significant improvements,
with an emphasis on literacy, school infrastructure, and the availability of medical
services. As a result, Botswana’s education and health indicators improved,
contributing to higher human development rankings in Africa.
 Social Security and Welfare: Mining revenue helped fund various social welfare
programs, including pensions, unemployment benefits, and social security for
workers, thus contributing to social stability and poverty reduction.
5. Poverty Reduction and Wealth Distribution
 Improved Living Standards: Botswana achieved a reduction in poverty levels, with
many citizens enjoying improved living standards due to the benefits from mining
wealth. The wealth generated by the mining sector allowed for infrastructure
development and social services that raised the quality of life for many citizens.
 Income Inequality: Despite overall improvements in living standards, the wealth
generated by mining has not been equally distributed. There has been an ongoing
challenge in ensuring that all segments of society benefit from mining revenues.
While the mining towns prospered, rural areas sometimes saw limited direct
benefits, leading to regional disparities.

OVER RELIANCE ON MINERAL REVENUE

 Over-Reliance on Mining: While mining played a crucial role in Botswana's
development, the country faced challenges related to over-reliance on a single sector.
Fluctuations in global diamond prices or changes in demand could significantly impact the
economy.
 Efforts at Diversification: In response, the government began pursuing diversification
strategies, aiming to reduce dependency on mining. Efforts to promote tourism, agriculture,
and manufacturing were part of the longer-term economic vision.

WITHDRAWAL OF DONOR AID

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The withdrawal of donors from Botswana after the discovery of minerals, particularly
diamonds, is a notable event in the country’s post-independence history. The discovery of
diamond deposits in the 1970s and the subsequent economic boom had significant socio-
political implications, including altering Botswana's relationship with international donors
and aid organizations.

 Declining Aid Dependence: As Botswana’s mineral wealth grew, the country’s reliance
on foreign aid began to diminish. With the increasing revenue from diamonds, the
government no longer needed to depend on international donors for funding. Botswana could
now self-finance its development projects, and foreign aid became less central to the
country’s economy.

 Donor Withdrawal: By the late 1980s and 1990s, many donor countries and international
aid organizations began to reduce or phase out their aid programs in Botswana. The reasoning
behind this withdrawal was straightforward: Botswana’s growing mineral wealth, particularly
from diamonds, made it one of Africa’s more prosperous nations. Donors no longer saw the
country as in need of the same level of assistance.

 For instance, major donor countries, including the United Kingdom, no longer considered
Botswana to be among the world’s poorest nations, and aid was reallocated to other countries
in greater need. Botswana’s rapid economic growth, driven by the diamond industry, was
seen as a success story in development, but also as an indication that the country could now
stand on its own financially.