Currently, Botswana holds the option to negotiate for higher stakes, particularly in diamond mines. Credit: EgolenaHK/Shutterstock.

Botswana is proposing new legislation to allow locals to purchase a 24% stake from mining companies, Reuters has reported.

The draft bill indicates that this mandate will apply if the government opts not to exercise its right to acquire the same shareholding.

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The proposal seeks to amend the current Mines and Minerals Act, which permits the Botswana government to acquire a 15% interest in mining projects upon licensing.

Botswana also holds the option to negotiate for higher stakes, particularly in diamond mines.

But recent transactions, including those involving Lucara’s Karowe diamond mine, MMG‘s Khoemacau copper mine and Sandfire’s Motheo copper mine, have seen the government not exercise this option.

Botswana Minister of Mineral Resources, Green Technology and Energy Security Lefoko Moagi has suggested that local pension funds could potentially finance the acquisition of stakes by Botswana.

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The Mines and Minerals Amendment Bill is due to be tabled by Moagi in parliament.

The bill reads: “Where government does not exercise its option of acquiring a 15% working interest upon granting of a mining licence, the holder shall use his best endeavour to dispose the 24% stake to citizens or citizen-owned companies.”

Through the state-owned Minerals Development Company Botswana, the government has interests in major mining ventures, including a 15% stake in De Beers, a 50% stake in the Debswana Diamond Company, full ownership of Morupule Coal Mine, and an indirect stake in coal miner Minergy through convertible debt.

In May 2024, Si6 Metals secured prospecting licence 123/2024, from the Botswana Department of Mines, which is valid for up to seven years.