Mineral industry of Botswana
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The mining industry of Botswana has dominated the national economy of Botswana since the 1970s.
Diamond Diamond is a Allotropes of carbon, solid form of the element carbon with its atoms arranged in a crystal structure called diamond cubic. Another solid form of carbon known as graphite is the Chemical stability, chemically stable form of car ...
has been the leading component of the
mineral In geology and mineralogy, a mineral or mineral species is, broadly speaking, a solid chemical compound with a fairly well-defined chemical composition and a specific crystal structure that occurs naturally in pure form.John P. Rafferty, ed. ( ...
sector since large-scale diamond production began in 1972 by Debswana. Most of
Botswana Botswana (, ), officially the Republic of Botswana ( tn, Lefatshe la Botswana, label=Setswana, ), is a landlocked country in Southern Africa. Botswana is topographically flat, with approximately 70 percent of its territory being the Kalahar ...
's diamond production is of
gem A gemstone (also called a fine gem, jewel, precious stone, or semiprecious stone) is a piece of mineral crystal which, in cut and polished form, is used to make jewelry or other adornments. However, certain rocks (such as lapis lazuli, opal, a ...
quality, resulting in the country's position as the world's leading producer of diamond by value.
Copper Copper is a chemical element with the symbol Cu (from la, cuprum) and atomic number 29. It is a soft, malleable, and ductile metal with very high thermal and electrical conductivity. A freshly exposed surface of pure copper has a pinkis ...
,
gold Gold is a chemical element with the symbol Au (from la, aurum) and atomic number 79. This makes it one of the higher atomic number elements that occur naturally. It is a bright, slightly orange-yellow, dense, soft, malleable, and ductile met ...
,
nickel Nickel is a chemical element with symbol Ni and atomic number 28. It is a silvery-white lustrous metal with a slight golden tinge. Nickel is a hard and ductile transition metal. Pure nickel is chemically reactive but large pieces are slow to ...
,
coal Coal is a combustible black or brownish-black sedimentary rock, formed as rock strata called coal seams. Coal is mostly carbon with variable amounts of other elements, chiefly hydrogen, sulfur, oxygen, and nitrogen. Coal is formed when dea ...
and soda ash production also has held significant, though smaller, roles in the economy. In 2005, mining accounted for about 38% of Botswana's real
gross domestic product Gross domestic product (GDP) is a money, monetary Measurement in economics, measure of the market value of all the final goods and services produced and sold (not resold) in a specific time period by countries. Due to its complex and subjec ...
(GDP), and more than 50% of government revenues were derived from mining and mineral-processing activity. In 2005, the nominal value of minerals produced in
Botswana Botswana (, ), officially the Republic of Botswana ( tn, Lefatshe la Botswana, label=Setswana, ), is a landlocked country in Southern Africa. Botswana is topographically flat, with approximately 70 percent of its territory being the Kalahar ...
exceeded that of 2004 by about 20% in
U.S. dollar The United States dollar ( symbol: $; code: USD; also abbreviated US$ or U.S. Dollar, to distinguish it from other dollar-denominated currencies; referred to as the dollar, U.S. dollar, American dollar, or colloquially buck) is the officia ...
s. Much of the increase was attributed to higher international mineral prices. Diamond,
copper-nickel matte Cupronickel or copper-nickel (CuNi) is an alloy of copper that contains nickel and strengthening elements, such as iron and manganese. The copper content typically varies from 60 to 90 percent. (Monel is a nickel-copper alloy that contains a minimu ...
, and gold, in order of value, accounted for most of the increase. Philip M. Mobbs
"The Mineral Industry of Botswana"
''2005
Minerals Yearbook The ''Minerals Yearbook'' is an annual publication from the United States Geological Survey. It reviews the mineral In geology and mineralogy, a mineral or mineral species is, broadly speaking, a solid chemical compound with a fairly well-def ...
''.
U.S. Geological Survey The United States Geological Survey (USGS), formerly simply known as the Geological Survey, is a scientific agency of the United States government. The scientists of the USGS study the landscape of the United States, its natural resources, and ...
(August 2007). ''This article incorporates text from this U.S. government source, which is in the
public domain The public domain (PD) consists of all the creative work A creative work is a manifestation of creative effort including fine artwork (sculpture, paintings, drawing, sketching, performance art), dance, writing (literature), filmmaking, ...
.
Botswana encompasses an area of 600,379 square kilometers in
southern Africa Southern Africa is the southernmost subregion of the African continent, south of the Congo and Tanzania. The physical location is the large part of Africa to the south of the extensive Congo River basin. Southern Africa is home to a number of ...
and is bordered by
Namibia Namibia (, ), officially the Republic of Namibia, is a country in Southern Africa. Its western border is the Atlantic Ocean. It shares land borders with Zambia and Angola to the north, Botswana to the east and South Africa to the south and ea ...
,
Zambia Zambia (), officially the Republic of Zambia, is a landlocked country at the crossroads of Central Africa, Central, Southern Africa, Southern and East Africa, although it is typically referred to as being in Southern Africa at its most cent ...
,
South Africa South Africa, officially the Republic of South Africa (RSA), is the southernmost country in Africa. It is bounded to the south by of coastline that stretch along the South Atlantic and Indian Oceans; to the north by the neighbouring countri ...
, and
Zimbabwe Zimbabwe (), officially the Republic of Zimbabwe, is a landlocked country located in Southeast Africa, between the Zambezi and Limpopo Rivers, bordered by South Africa to the south, Botswana to the south-west, Zambia to the north, and Mozam ...
. Most merchandise trade is shipped via rail or truck through
South Africa South Africa, officially the Republic of South Africa (RSA), is the southernmost country in Africa. It is bounded to the south by of coastline that stretch along the South Atlantic and Indian Oceans; to the north by the neighbouring countri ...
. The total value of exports in 2005 was about $4.66 billion. Mineral exports, of which diamond accounted for $3.3 billion; copper and nickel matte, about $461 million; soda ash, about $65 million; and gold, about $36 million, represented 83% of total merchandise exports. The provisional value of imports in 2005 was $3.28 billion.


Commodities


Copper and Nickel

In eastern Botswana, about 200 kilometers (km) south of
Francistown Francistown is the second largest city in Botswana, with a population of about 103,417 and 147,122 inhabitants for its agglomeration at the 2022 census. and often described as the "''Capital of the North''" or as the natives would have it “''T ...
, the smelter operated by BCL Ltd. of Botswana processed copper-nickel concentrate from the company's
Selebi-Phikwe Mine Selebi-Phikwe (also spelt ''Selibe Phikwe'') is a mining town located in the Central District of Botswana. It had a population of 42,488 in 2022. The town is an administrative district, separate from the surrounding Central District. Mining ...
. Under an agreement signed in 2001 by Centametall AG of Switzerland and Falconbridge International Ltd. of
Barbados Barbados is an island country in the Lesser Antilles of the West Indies, in the Caribbean region of the Americas, and the most easterly of the Caribbean Islands. It occupies an area of and has a population of about 287,000 (2019 estimate). ...
, BCL also toll-smelted concentrate from the Phoenix open pit mine, which was operated by
Tati Nickel Mining Co. Tati can refer to: Locations * Tati River, Botswana **Tati Concessions Land, in present-day Botswana *Tati, Ranchi, a town in Jharkhand, India * Tatí Yupí Refuge, a biological reserve in the district of Hernandarias, Alto Paraná Department, Pa ...
(a subsidiary of LionOre Mining International Ltd. of Canada). During 2005, the BCL smelter produced 68,637 metric tons (t) of nickel-copper-cobalt matte. Centametall and Falconbridge shipped the nickel matte to the
Falconbridge Nikkelverk Falconbridge may refer to: *Falconbridge Ltd., a Canadian mining company * Falconbridge, Middlesex County, Ontario *Falconbridge, Greater Sudbury, Ontario People: *Lord Falconbridge, an alternative title for barons, viscounts, and earls of Fauconb ...
, AS refinery in
Norway Norway, officially the Kingdom of Norway, is a Nordic country in Northern Europe, the mainland territory of which comprises the western and northernmost portion of the Scandinavian Peninsula. The remote Arctic island of Jan Mayen and t ...
and RioZim Ltd.’s
Eiffel Flats Eiffel Flats is a village in the province of Mashonaland West, Zimbabwe. It is located about 7 km east of Kadoma. History The village began in 1905 as a residential township for the Cam and Motor gold mine, operated by Rio Tinto Group, now R ...
refinery in Zimbabwe. In 2002, BCL and Falconbridge agreed to extend to 2015 the tolling agreement under which BCL-mined nickel matte was refined in Norway. The reserves at the Selebi-Phikwe Mine, however, were expected to be exhausted by 2011 or 2012. In 2005, the Government continued to evaluate proposals to sustain the town of Selebi-Phikwe after the closure of the mine and to minimize the potential negative impact of the closure on operations of the BCL smelter, the Botswana Power Corporation, the Botswana Railways, and the Morupule Colliery. The BCL operation accounted for about 60% of Botswana's industrial sector's total energy consumption. The output of copper-nickel matte from the BCL smelter traditionally has exceeded the smelter's 40,000-metric-ton-per-year (t/yr) design capacity, often by more than 30%. Despite the adverse effect of cyclical metals prices during the past two decades and the looming closure of the Selebi-Phikwe Mine, the design capacity of BCL smelter recently was expanded to 60,000 t/yr. In 2005, matte output exceeded the smelter's new design capacity. Because the BCL smelter might shut down with the closure of the Selebi-Phikwe Mine, LionOre had initiated in 2003 a pilot plant project to evaluate the recovery of copper and nickel from the Phoenix Mine by using Western Minerals Technology Pty. Ltd.’s Activox process. In 2005, a feasibility study of an Activox plant with an output capacity of 25,000 t/yr of nickel was underway. The study was expected to be completed in mid-2006. Several copper and nickel exploration projects were underway as of 2005. African Copper plc continued its evaluation of the Dukwe copper project, which was located about 130 km northwest of Francistown, and the adjacent Matsitama licenses. African Copper successfully completed a feasibility study of an open pit, heap leach, and
solvent extraction/electrowinning Solvent extraction and electrowinning (SX/EW) is a two-stage hydrometallurgical process that first extracts and upgrades copper ions from low-grade leach solutions into a solvent containing a chemical that selectively reacts with and binds the co ...
operation to process the oxidized ore at Dukwe and started a feasibility study of the underground development of the sulfide zone at Dukwe. African Copper proposed to begin a 10,000-meter infill drill program at Matsitama in 2006. In 2005, Discovery Nickel Ltd. continued its exploration drilling on the Northeast Botswana Brownfields nickel project, which included the Dikoloti, the Dikoloti North, the
Kima ''Kima'' is a genus of spiders in the family Salticidae (jumping spiders). Species , the World Spider Catalog accepted the following species: * '' Kima africana'' Peckham & Peckham, 1902 – South Africa * '' Kima atra'' Wesołowska & Russell ...
, and the Lentswe prospects. In 2005, Discovery Nickel acquired seven prospecting licenses in northwest Botswana that formed the Maun copper project. Tau Mining Botswana (Pty.) Ltd. subsidiary of African Platinum plc (Afplats) of the United Kingdomcompleted a preliminary evaluation of its Molopo Farms prospect, which was located about 175 km west of
Gaborone Gaborone ( , , ) is the capital and largest city of Botswana with a population of 246,325 based on the 2022 census, about 10% of the total population of Botswana. Its agglomeration is home to 421,907 inhabitants at the 2011 census. Gaboron ...
. Because of higher priority projects in southern Africa, Afplats decided to divest its interest in the Molopo Farms prospect. WMC Resources Exploration Pty. Ltd. of Australia was acquired by the BHP Billiton Group in 2005. The WMC/BHP Billiton joint venture with Albidon Ltd. of Australia conducted airborne and ground electromagnetic surveys, mapping, and soil sampling on its Selebi-Phikwe nickel project. Activity on the Tati nickel project, which was a joint venture of Albidon and Gallery Gold Ltd. of Australia, included the completion of a reconnaissance drilling program on the Kismet and the Tekwane nickel prospects.


Gold

European discovery of the
Tati Goldfields The Tati Goldfields are a mineral-rich band in Botswana and Zimbabwe in southern Africa. The band runs approximately long by wide, and crosses the Tati River. It is the southernmost of the gold-bearing bands in the Archaen greenstone (schist) be ...
lead to the first southern Africa
goldrush A gold rush or gold fever is a discovery of gold—sometimes accompanied by other precious metals and rare-earth minerals—that brings an onrush of miners seeking their fortune. Major gold rushes took place in the 19th century in Australia, New Ze ...
. Among the mines founded in the Tati Goldfields were the Monarch and the Mupane. The Mupane Mine, which is located about 30 km southwest of Francistown, was operated by Mupane Gold (a subsidiary of Galane Gold). In 2005, ore was sourced from the oxide and transition zones of the Tau open pit and, after mid-year, the oxide zone of the Tholo pit. At the Mupane plant, Mupane Gold commissioned a ball mill, installed a flotation plant to handle sulfide and transition zone gold ore, and upgraded the oxygen plant. Gallery Gold continued exploration of other gold occurrences near the Mupane facility; these included the Jim's Luck prospect; the Maitengwe lease; the Golden Eagle, the Lady Mary 2, and the Map Nora prospects on the Sashe license; the Ratomo and the Signal Hill prospects in the Tati Belt; and the Vumba lease. At year end IAMGOLD Corp. of Canada proposed to acquire Gallery Gold and Gallery Gold's Botswana operations.


Diamonds

Debswana (a 50-50 joint partnership of
De Beers De Beers Group is an international corporation that specializes in diamond mining, diamond exploitation, diamond retail, diamond trading and industrial diamond manufacturing sectors. The company is active in open-pit, large-scale alluvial and c ...
Centenary AG and the Government) accounted for all diamond production in Botswana from its four mines. Debswana continued its recovery from the labor unrest that had resulted in a 2-week strike in 2004. In 2005, Debswana treated about 31.2 million metric tons (Mt) of ore to yield , which was a weight increase of more than 2% compared with 2004. Debswana's diamond production included from the 34-year-old Orapa Mine, which was a 7% decline compared with 2004; from the 23-year-old Jwaneng Mine, which was a 14% increase compared with 2004; from the 20-year-old Letlhakane Mine, which was a 6% increase compared with 2004; and from the 2-year-old Damtshaa Mine, which was a 27% decline from that of 2004. The production decline at Orapa was attributed to the loss of a haul road because of a ramp failure and a fire, which destroyed a loading shovel.
De Beers De Beers Group is an international corporation that specializes in diamond mining, diamond exploitation, diamond retail, diamond trading and industrial diamond manufacturing sectors. The company is active in open-pit, large-scale alluvial and c ...
and the Government agreed that some of De Beer's Diamond Trading Company's operations would move from
London, United Kingdom London is the capital and List of urban areas in the United Kingdom, largest city of England and the United Kingdom, with a population of just under 9 million. It stands on the River Thames in south-east England at the head of a estuary dow ...
, to Gaborone, Botswana. Local marketing of domestically produced gemstones was expected to help the local diamond cutting and polishing companies. A large number of many other companies were exploring for diamond in Botswana. Active exploration operations included those of Boteti Exploration (Pty.) Ltd., which was a joint venture between De Beers (51%) and African Diamonds plc (49%); Gcwihaba Resources (Pty.) Ltd. (a subsidiary of Tsodilo Resources Ltd.); Helio Resources Corp.; Newdico (Pty.) Ltd., which was a joint venture of Tsodilo (81%) and the Trans Hex Group (19%); Tawana Resources N.L.; and the joint ventures of De Beers and Firestone Diamonds plc; Motapa Diamonds Inc. and Stornoway Diamond Corp.; and Rio Tinto Mining and Exploration Ltd. and Trivalence Mining Corp. In addition, DiamonEx Ltd. of Australia started a reevaluation of the Martin's Drift prospect, which was a 5-kimberlite deposit that had been trial mined by Tswapong Mining Co. from 1998 to 2001, and Petra Diamonds Ltd. of the Channel Islands acquired Kalahari Diamond Ltd. and its Botswana-based subsidiary Sekaka Diamonds (Pty.) Ltd. There might be anew Canadian mine Tango Gold mines ltd starting the work next year.


Coal

Coal is a combustible black or brownish-black sedimentary rock with a high amount of carbon and hydrocarbons. Coal is classified as a nonrenewable energy source because it takes millions of years to form. Coal contains the energy stored by plants that lived hundreds of millions of years ago in swampy forests. Layers of dirt and rock covered the plants over millions of years. The resulting pressure and heat turned the plants into the substance we call coal. Debswana operated the Morupule Colliery at Palapye, which is located about 175 km south of
Francistown Francistown is the second largest city in Botswana, with a population of about 103,417 and 147,122 inhabitants for its agglomeration at the 2022 census. and often described as the "''Capital of the North''" or as the natives would have it “''T ...
. Much of the company's coal production was sold to the adjacent Morupule Power Station (MPS) of Botswana Power Corp. (BPC). Record coal sales in 2005 were 967,242 t, which was an 8% increase compared with the total in 2004. A coal washing plant was under construction. In 2005, Coal Investment Corp. (CIC) of the
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and Meepong Investments (Pty.) Ltd. of Botswana entered into a joint venture to reevaluate the
Mmamabula Mmamabula is a planned coal mine and coal-fired power station to the east of the main road and rail corridor in Botswana between Gaborone and Francistown and south of the Serorome River. The power station would be near to the village of Mmaphash ...
coal project. Mmamabula previously had been explored extensively by a number of organizations, which included AMAX Exploration Inc. of the United States, Anglo American Corp. of South Africa, the coal division of British Petroleum Ltd. of the United Kingdom, Charbonnages de France International Botswana, the Geological Survey of the
Bechuanaland Protectorate The Bechuanaland Protectorate () was a British protectorate, protectorate established on 31 March 1885, by the United Kingdom of Great Britain and Ireland (later the United Kingdom, United Kingdom of Great Britain and Northern Ireland) in So ...
, the Geological Survey of Botswana, and Shell Coal Botswana Ltd. Mmamabula's inland location and lack of process water had thwarted the prospect's development as a coal export project in the early 1980s. In 2005, CIC's local subsidiary, Meepong Resources (Pty) Ltd., proceeded with a feasibility study of the Mmamabula license, and the U.S. Trade and Development Agency awarded a contract to Delphos International, Ltd. of the United States to provide financial advisory assistance to the Botswana Ministry of Minerals, Energy, and Water Resources for the development of a 1,200-megawatt coal-fired powerplant at Mmamabula.


Outlook

International interest in exploration for diamond and base and precious metals is expected to continue. The country's favorable geologic environment, mineral investment climate, low tax rates, and political stability are expected to continue to make Botswana a foreign mineral investment magnet. The Government encourages mineral value-added processing, but the paucity of water in landlocked
Botswana Botswana (, ), officially the Republic of Botswana ( tn, Lefatshe la Botswana, label=Setswana, ), is a landlocked country in Southern Africa. Botswana is topographically flat, with approximately 70 percent of its territory being the Kalahar ...
has deterred large-scale industrial development. The country's small domestic market, the cost of transportation to ports in South Africa, and the perception of rampant Human Immunodeficiency Virus/
Acquired Immune Deficiency Syndrome Human immunodeficiency virus infection and acquired immunodeficiency syndrome (HIV/AIDS) is a spectrum of conditions caused by infection with the human immunodeficiency virus (HIV), a retrovirus. Following initial infection an individual ma ...
(HIV/AIDS) epidemic also limit the nation's attractiveness to investment by foreign manufacturers. High fuel costs would continue to affect the cost of transportation of Botswana's imports and exports adversely. Revenues from diamond operations are expected to continue to be the mainstay of the country's economy for the foreseeable future, although Debswana has scheduled lower production volumes. Copper, gold, nickel, and soda ash production and processing also are expected to continue to be notable factors in the country's economy. Given the country's extensive coal resources and projected regional power demand, Botswana has the potential to develop and support a small-scale coal-bed methane industry and additional coal-fueled electricity-generating plants that could supply power to the South African Power Pool through its land lines to South Africa.


References

{{Africa topic, Mining in Economy of Botswana