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Botswana, global mining darling – Moagi

Botswana holds one of the top spots in the global mining space, because of its competitive policies and strict laws and good business environment that allows investment in mining to flourish, this was reiterated by Minister of Mineral Resources, Green Technology and Energy Security, Lefoko Maxwell Moagi in Abu Dhabi,United Arab Emirates last Friday.

Minister Moagi was the headline speaker at the Invest in Botswana Mining & Minerals business seminar held during the Dubai Expo, organised to tell Botswanas mining story and present opportunities that lie ahead for smart and sustainable mining to diversify the economy and create more jobs.

“As government we encourage competitive returns for the nation and the Investor, this is evidenced by our competitive policies and regulatory framework that allows investors to enjoy fruits of their labour” he said.

Minister Lefoko cited annual surveys by independent institutions and global policy think tanks, who continuously place Botswana above other countries on various measures of mining easy of doing business.

The Fraser Institute 2021 – policy perception index placed Botswana number 1 in Africa, 15 out of 77 countries in the World. “This talks to policy attractiveness in a particular jurisdiction, we are also top of the continent in the investor attractive index, which speakers to fiscal regimes, easy of doing business, tax incentives, policy and regulation.”

The Minister highlighted that in the past 10 years Botswana has seen an influx of mining companies from prospecting, exploration to developing new mines and resuscitating old operations.

“We have seen Lucara in 2012, Khoemacau, Sandfire now Premium Nickel Resources, these are companies from all corners of the world, Canada, Australia and the UK, this buttresses and proves our robust and very strict mining regulations, on labour, safety and rule of law in general, our investors enjoy security of tenure, doing business with easy knowing their money is in a good jurisdiction,” he said.

Dubai Investors were further told the audience that Botswana possess ample human capital to aid the extractive industry.

“We have a very highly skilled and trained workforce, that we have built over the years as a country, this is a key requisite to ensure the investment pays off into operational and profitable business enterprises without exorbitant costs of importing labour, where our local workforce runs short we allow you to source special skills from abroad, he said.

In terms of the text regime Botswana has a competitive tax regime, the Minister revealed, company tax at 22 percent, down stream and beneficiation 15 percent to encourage local processing(5 percent basic rate, 10 percent company tax).

“The taxes arebased on profits, so they are adjusted from time to time depending on your company’s revenue and profits for a particular year” he said.

In terms of royalties, it varies depending on the minerals extracted; precious stones rate at 10 percent, precious metals 5 percent while all other minerals are charged 3 percent percent royalties.

Minister Lefoko also highlighted that the other advantage that comes with investing in Botswana’s mining sector is the relaxed import duty on mining vehicles, equipment and spares, these are zero rated or exempted while other commodities are charged 14 percent VAT.

Currently new mining activities in Botswana include massive exploration and development of new mines in the Kalahari Copper belt to extract base metals such as silver and ore.

There is also Iron Ore mining in Ikongwe near Shoshong, energy mineral (manganese, cobalt) in Kanye, Lobatse and Otse areas, lithium prospecting in Makgadikgadi pans.

Minister Lefoko said manganese exploration in Kanye is at definitive reserve stage and soon Giyani Metals, the company developing the project, will apply for a mining license.

“Weare encouraged because manganese is a battery mineral, opportunities present itself for battery factories for electric cars and solar PV, to unlock value chain opportunities for our renewable energy and manufacturing ambitions in the process creating jobs and diversifying our economy.

The Minister highlighted continued Infrastructure development that would aid movement of commodities from mining sites to exit ports in transit to shipment bays cross border.

“We have North West transmission grid that is currently underway to connect electricity to all major mining projects, the Mohembo and Kazungula Bridge will make it easy for goods, materials and the product to come in and out of the country, easily reaching the export market.

“Botswana also has favorable exchange controls, you can repatriate your money elsewhere, and we have good labour relations and good relationships with labour unions the Minister added.

He also highlighted the Botswana Geoscience Institute Aeromagnetic data project which evaluates areas of mineral potential in Botswana, with primary focus on Base metals, Rare Earth Metals, Precious metals and platinum group metals (PGMs).

“This now means cadastral information on minerals and areas of interest will be readily available online, investors can browse through before they even land in Botswana making the investment decision very easy and quick,”he said.

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China’s GDP expands 3% in 2022 despite various pressures

2nd February 2023
China’s Gross Domestic Product (GDP) expanded by 3% year-on-year to 121.02 trillion yuan ($17.93 trillion) in 2022 despite being mired in various growth pressures, according to data from the National Bureau Statistics.

The annual growth rate beat a median economist forecast of 2.8% as polled by Reuters. The country’s fourth-quarter GDP growth of 2.9% also surpassed expectations for a 1.8% increase.

In 2022, the Chinese economy encountered more difficulties and challenges than was expected amid a complex domestic and international situation. However, NBS said economic growth stabilized after various measures were taken to shore up growth.

Industrial output rose 3.6% in 2022 over the previous year, while retail sales slightly shrank by 0.2% data show that fixed-asset investment increased 5.1% over 2021, with a 9.1% hike in manufacturing investment but a 10% fall in property investment.

China created 12.06 million new jobs in urban regions throughout the year, surpassing its annual target of 11 million, and officials have stressed the importance of continuing an employment-first policy in 2023.

Meanwhile, China tourism market is a step closer to robust recovery. Tourism operators are in high spirits because the market saw a good chance of a robust recovery during the Spring Festival holiday amid relaxed COVID-19 travel policies.

On January 27, the last day of the seven-day break, the Ministry of Culture and Tourism published an encouraging performance report of the tourism market. It said that domestic destinations and attractions received 308 million visits, up 23.1% year-on-year. The number is roughly 88.6% of that in 2019, they year before the pandemic hit.

According to the report, tourism-related revenue generated during the seven-day period was about 375.8 billion yuan ($55.41 billion), a year-on-year rise of 30%. The revenue was about 73% of that in 2019, the Ministry said.

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Jewellery manufacturing plant to create over 100 jobs

30th January 2023

The state of the art jewellery manufacturing plant that has been set up by international diamond and cutting company, KGK Diamonds Botswana will create over 100 jobs, of which 89 percent will be localized.

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Investors inject capital into Tsodilo Resources Company

25th January 2023

Local diamond and metal exploration company Tsodilo Resources Limited has negotiated a non-brokered private placement of 2,200, 914 units of the company at a price per unit of 0.20 US Dollars, which will provide gross proceeds to the company in the amount of C$440, 188. 20.

According to a statement from the group, proceeds from the private placement will be used for the betterment of the Xaudum iron formation project in Botswana and general corporate purposes.

The statement says every unit of the company will consist of a common share in the capital of the company and one Common Share purchase warrant of the company.

Each warrant will enable a holder to make a single purchase for the period of 24 months at an amount of $0.20. As per regularity requirements, the group indicates that the common shares and warrants will be subject to a four month plus a day hold period from date of closure.

Tsodilo is exempt from the formal valuation and minority shareholder approval requirements. This is for the reason that the fair market value of the private placement, insofar as it involves the director, is not more than 25% of the company’s market capitalization.

Tsodilo Resources Limited is an international diamond and metals exploration company engaged in the search for economic diamond and metal deposits at its Bosoto Limited and Gcwihaba Resources projects in Botswana.  The company has a 100% stake in Bosoto which holds the BK16 kimberlite project in the Orapa Kimberlite Field (OKF) in Botswana.

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