The government has proposed amendments to the Mines and Minerals Act to prioritize local and citizen-owned companies in holding mineral concessions.

The revised Act aims to close loopholes that previously allowed mining companies to export bulk samples for research in other countries. The Ministry of Minerals stated that the changes are intended to boost the participation of local and citizen-owned companies in the industry.

According to the draft Bill, section 12 of the Minerals and Mining Act will be amended to ensure mineral concession holders prioritize Botswana citizens, companies incorporated in Botswana, and companies registered in Botswana, including local manufacturing firms. Additionally, concession holders will be required to submit quarterly activity reports to the Minister.

Minerals Minister Lefoko Moago is set to present the Bill to Parliament.

The Bill includes a section on citizen economic empowerment, stating that if the government does not exercise its option to acquire a 15% stake in a mining company when a mining license is granted, that company must dispose of at least 24% of its shares to citizens or citizen-owned companies. Another new section forbids license holders from removing minerals or mineral samples from Botswana for studies, tests, or surveys without the written permission of the Director of Mines.

Citizens who own 100% of their companies can apply for a minerals permit, which now includes conditions for granting or renewing such permits. The Bill increases the validity of minerals permits from five to ten years and introduces an application fee for renewal. It also stipulates that minerals permits cannot be transferred, assigned, encumbered, or dealt with in any manner without the Minister's approval, regardless of where the transaction occurs.

The Bill amends section 3 of the Mining and Minerals Act to enhance the Minister's powers to ensure that Botswana's economic needs are met by its mineral resources before they are exported or sold abroad. Clause 5 of the Bill amends section 6 of the Act, preventing individuals who have been directors or shareholders of defaulting companies from being granted mineral concessions.

A new subsection requires concession holders to beneficiate minerals produced in Botswana as far as economically feasible and to the satisfaction of the Minister. Another new subsection states that mining licenses cannot be transferred, assigned, encumbered, or dealt with without the Minister's approval. Applications for the transfer of mining licenses must include an original or certified copy of the company resolution from each party involved in the transaction.

Furthermore, applications for mining or retention licenses, or their renewal, must include an environmental impact assessment, which must be authorized per the Environmental Assessment Act before the license can be granted. The Bill also requires financial provision for environmental rehabilitation, either by setting up an environmental rehabilitation trust fund or securing a financial guarantee from a Botswana-registered bank, any other approved bank, or financial institution, or any other method approved by the Minister.