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Mineral Projects and Prospects

PB 1 Botswana Mineral Projects and Prospects

Table of Contents

Introduction 4

BGI Mandate 4

History of Exploration and Mining 4

Precompetitive Data: National Coverage of Geological and Geophysical Surveys 4

Geological Mapping Coverage 4

Geophysics Data 5

Total Magnetic Intensity Map of Botswana 5

Gravity Surveys 5

Radiometric Data 6

Geochemical Data 6

Borehole Data 6

Updating of the National Geological Map 6

Pre-Kalahari Geology Map 8

Botswana Mineral Potential: By Commodity and Geological Provinces 9

Coal 9

Coal Resource Estimation 10

Opportunities for Diamonds, Base and precious metals 10

Diamonds and Kimberlite Fields 10

Geological of Botswana 12

Geological Provinces: Molopo Farms Complex 15

Geological Provinces: Kalahari Copper Belt 15

Rare Earths 16

Industrial Minerals and Construction Aggregates 18

Slates 18

Aggregate for roads and building Construction 18

Industrial Minerals and Construction Aggregates 19

Ornamental Stones 20

Clay Deposits 20

Maitengwe Greenstone Belt 22

Mineral Accounts 26

2 3 Botswana Mineral Projects and Prospects

List of Figures

Figure 1 : Progress in Geological Mapping as at June 2011 4 Figure 2 : Government Funded Geophysical Surveys 5 Figure 3 : Total Magnetic Intensity Map of Botswana 2011 5 Figure 4: Gravity Bouger Anomaly Map 5 Figure 5: Radiometric Data 6 Figure 6: Nickel concentration distribution pattern 6 Figure 7: Magnesium concentration distribution pattern 6 Figure 8 Map: showing Borehole Data 7 Figure 9: Pre Kalahari Geology Map 8 Figure 10: Coalfields map 9 Figure 11: Map showing occurrence of kimberlite fields in relation to structural provinces and tectonic units 11 Figure 12: Map showing Metallogenic provinces 13 Figure 13: Map showing. Molopo farms complex Geology 15 Figure 14: Kalahari Copper Belt 15 Figure 15: Granitic Complexes of Botswana showing battery metals concentration results from BGS Sampling Points 16 Figure 16: Granitic Complexes of Botswana showing REE concentration results from BGS Sampling Points 17 Figure 17: Dipotsana slate is grey in colour when it is fresh, but it weathers reddish-brown depending on the period it took in contact with the fluids which will results in oxidation of the top most surface of the slate. 18 Figure 18: Corse to medium grained found both in the eastern and southern Botswana, the material qualify for road and building construction. Further crushing of these rocks, using cone crushers produces manufactured sand, which is suitable for construction buildings. 18 Figure 19: Industrial Minerals Map 19 Figure 20: Some of the granites (ornamental stones) similar to those found in the Greater and North eastern Botswana, showing different shades of colours and textures. 20 Figure 21: Clay deposits in Botswana is used mostly for brick making. Small portion of it is used in pottery, of which most of it is exported to neighbouring countries. 20 Figure 22: Location of the study area and topographic elevation from ASTER DEM. 21 Figure 23: Regional Geology and major tectonic units of Botswana in relation to Study Area 22 Figure 24: Local Geology around the Maitengwe Study Area 24 Figure 25: Regional Geology and Geophysical Setting of Magondi Oregenic belt 25 Figure 26: The spatial extent of Archean cratons and Proterozoic orogenic belt. White line represent the fault system of the Okavango Rift Zone. Modified after Singletary et al. (2003) and Begg et al. (2009) 25 Figure 27: Contribution of Gross Value Added to GDP by kind of Economic Activity (Statistics Botswana 2017) 26 Figure 28: Compensation of Employees by Industry (Statistics Botswana (2017) 26 Figure 29: Depletion Components of rent (Economic Accounting of Mineral Resources 2016/17) 27

2 3 Botswana Mineral Projects and Prospects

underground mine production and is anticipated to start Introduction production in 2021. Within the KCB, several exploration companies have advanced exploration to prefeasibility 1.1 BGI Mandate stage and these include. Tshukudu Metals Exploration- Mining Company. The Botswana Geoscience Institute (BGI) was established through an Act of Parliament passed in 2014. Its purpose 2 Precompetitive Data: National Coverage of Geological is to undertake research in the field of geosciences and and Geophysical Surveys provide specialised geoscientific services; empower the Institute to be the custodian of geoscience information; Approximately 25% of Botswana land area, narrow promote the search for, and exploration of any mineral eastern strip and ridge, is covered by Pre-Kalahari in Botswana; and to act as an advisory body in respect of Geological Formations where all of the mines in Botswana geohazards and other incidental matters. have been discovered.

1.2 History of Exploration and Mining Notwithstanding extensive cover of the Quaternary Kalahari Deposits, the unexposed 75% Pre-Kalahari Botswana’s exploration and mining has been historically Geology rocks in Botswana are potential metallogenic dominated by diamonds and to lesser extent base metals. provinces with unexplored and untapped mineral Most of Botswana’s diamond production is of gem quality, potential that can drive diversification from diamonds. resulting in the country’s position as the world’s leading producer of diamond by value. 2.1 Geological Mapping Coverage

Copper, gold, nickel, and soda ash production also has In recognition of this potential, Botswana Government has held significant, though smaller, roles in the economy. since independence, embarked on aggressive nationwide Base metal mining experienced a slum in 2015, however geological and geophysical mapping resulting in 90% of exploration for Cu-Ag deposits has intensified in western the land area covered in high resolution aeromagnetic and part of Botswana. Growth is expected from the copper/ relatively high-resolution gravity survey in the northern silver discoveries in the Kalahari Copper Belt (KCB). part, central and Molopo Farms areas. Geological mapping covered 48 % of the country. Currently, 45% of the country The Botswana government granted Khoemacau Copper is covered by 37% of 1: 125 000 scale and 8% of 1: 250 000 Mining Company a mining licence for a 3.6 Mtpa scale geological maps.

20° E 21° E 22° E 23° E 24° E 25° E 26° E 27° E 28° E 29° E

PROGRESS IN GEOLOGICAL MAPPING

ZAMBIA TOPOGRAPHICAL LEGEND ! 1725C Leshomo Ngoma Bridge ! ! ! Villages /Settlememnts 1724D 1725C 18° S 1724C 1724C 18° S Xamshiko ! National Boundary Siabisso Kataba ! ANGOLA ! Xaoxwe Boundaries ! 1823A 1823B 1824B 1825A Vilnoa !Nakauyu 1822B 1824A Karee ! Dibejama! 1822A Safari Camp ! ! Major Roads 1821B ! · 1821A 1823B 1825B Marunga Pandamatenge ! Dobetsha Savute ! ! ! 1 : 125 000 SERIES (Published) Full colour Geological map with brief description 1821C 1821D 1822C 1822D 1823C 1823D 1824C 1824D 1825C 1825D and formalised stratigraphic nomenclature

1 : 250 000 SERIES (Published) 19° S 19° S Geological maps with brief description Mababe and Geophyscical information ! 1922B 1921A 1921B 1922A 1923A 1923B 1924A 1924B 1925A 1925B GEOLOGICAL INTERPRETATION Xorotsaa Kandalengo!ti ! 1 : 500 000 Cheracheraha 1926A ! Geological interpretation of the Aeromagnetic Gqose ! Survey of Western Ngamiland Qubi ! 1923D REVISED HYDROGEOLOGICAL MAPPING 1921C 1921D 1922C 1922D 1923C 1924C 1924D 1925C 1925D 1926C 1 : 500 000 SERIES (Published) Maun Sepako ") ! Konde ! Maun 1926D Completed with brief description ! 20° S 20° S SHEET 9 Kaore Mmanxotai ! B 42 Zoroga ! ! Motopi M 2 2022B ! ! Completed with brief description 2021A 2021B 2022A Makgobola 2023A 2023B 2024A 2024B 2025A 2025B 2026A 2026B ! 2027A SHEET 10 Bulletin published Mpayabana B 30 ! Moroka Mbalambi ! Kalakama!ti !Jackalas 1 Bodibeng M 7 M 2 ! M 6 District Memoir published ! Mosetse Nswazw!i M 1 ! ! Toteng 2021C 2021D 2022C 2022D 2023C 2023D 2024C 2024D 2025C 2025D 2026C 2026D 2027C ! 2027D Lepashe Tsamaya ! ! Projected Coordinate System:� Marapong M 2 ! Clarke_1880_Transverse_Mercator 21° S ! 21° S Projection:� Transverse_Mercator Geographic Coordinate System:�GCS_WGS_1984 Mmeya False_Easting:� 500000.00000000 Datum: �D_WGS_1984 Xere Mmatshumo ! ! B 21 ! False_Northing:� 10000000.00000000 Prime Meridian: �Greenwich ! Mokubilo 2127A ") 2125B B 21 ! Central_Meridian:� 24.00000000 Angular Unit: �Degree 2121A 2121B 2122A 2122B 2123A 2123B 2124A 2124B 2125A 2126A 2126B Mabesekwa Matsiloje OrapaOrapa ! 2127B ! Scale_Factor:� 0.99960000 !") B 21 B 21 M 3 Latitude_Of_Origin:� 0.00000000 B 21 B 21 ! M 1 Ditladi M 7 B 35 ! Linear Unit: � Meter Robelela NAMIBIA M 3 ! Ghanzi Dimajwe Foley ") ! B 31 ! M 40 CENTRAL KALAHARI 1 : 125 000 SERIES COVERAGE Lepokole 2121C 2121D M 7 2122C 2122D 2123C 2123D 2124C 2124D 2125C 2125D 2126C 2126D 2127C 2127D 2128C ! 22° E 23° E 24° E 25° E Mmashoro Gobojango! Semolale ! Serule ! ! Khwee ! 2129C ! Selibe-Phikwe 2128D ! ! B 25 22° S Selebi-Pikwe 22° S ") 24° S 24° S M 4 B 34 Morwamosu Xanagas B 38 Toposi Siding Sefhophe Motlhabaneng Pont Drift Kome Pan Mabutsane ! ! ! B 24 ! B 19 ! 2229A Mamuno 2223A Paje 2228A Mathathane ! 2220B 2221A 2221B 2222A 2222B 2223B 2224A 2224B 2225A 2225B 2226A 2226B ! 2227A 2227B 2228B ! Utwi Xade Mogapi 2220A! ! ! Tswaane Kgagodi Khekhe Keng Samane ! Metsiamanong ! ! M 4 ! Thab!ala 25° S 25° S ! Lesenepole Moletemane ! ! Werda Molopo 2228D 2228D Farms LerolwaneMetlobo Gope B 16 B 18 ! B 13 Letsheng B 10 2228C B 8 ! 2227C Ratholo 2222C Mokgware ! 2220C 2220D 2221C 2221D 2222D 2223C 2223D 2224C 2224D 2225C 2225D 2226C 2226D ! RadiselePilikwe 2227D Bore ! ! ! ! Kagcae Seleka 26° S 26° S ! ! Khisa MosolotshaneKalamare Mosopha ! ! ! Sefhare Ngwapa 23° S ! ! 23° S ! !Chadibe Kodibeleng M!ahalapye Shakwe Ncojane ! ! Tautswe! B 15 ! ! Machaneng ! B 9 B 213257A 2327B 27° S 27° S 2320A 2320B 2321A 2321B 2322A 2322B 2323A 2323B 2324A 2324B 2325A 2325B 2326A MasoBkw 1e4 2326B Makwate ! Makoswane! ! 22° E 23° E 24° E 25° E Shadishadi ! CENTRAL KALAHARI 1 : 250 000 SERIES COVERAGE Kungwane Dovedale ! Mmamabula Siding! M 6 ! 2327C 22° E 23° E 24° E 25° E 26° E Diphuduhudu ! Mookane A ! ! 2327C IC Dibete Station R 2325D ! M 6 F 2320C 2320D 2321C 2321D 2322C 2322D 2323C 2323D 2324C 2324D 2325C 2326C A H Makalamabedi ! ! T ! ! Mateane OKWA MAZEAMANONG Phuduhudu Lotse ! 2326D OU ! ! S Artesia/Mosomane 24° S Motokwe ! OF 24° S ! Maboane IC 23° S 23° S ! Ses!ung L ! B 39 B ! Oliphant's Drift U LetlhakengSerinane B 48 ! P Magakabe ! 2426B E ! R KANG KHUTSE 2420A 2420B 2421A 2421B 2422A 2422B 2423A 2423B 2424A 2424B 2425A 2425B ! Malotwana 2426A! ! Mahotshwane ! ! ! 24° S 24° S Sekoma Mmatseta ! ! 2426D B 33 Keng Jwaneng ! ! ! 2426C MABUTSANE KANYE Sese Kubung Gaba")ne B 48 ! Khakhea ! ! ! ! ! 2420C Moshup!a 2425D 2420D 2421C 2421D 2422C 2422D 2423C 2423D 2424C 2424D 2425C ! 25° S 25° S Thankane MoshanengRanaka ! MOLOPO ! ! ! Kanye ! 25° S ! 25° S LotlhaMka 5ne 2520A ! B 30 B 36 2523A 26° S 26° S ! ") 2523B 2525B 2520A 2520B 2521A 2521B 2522A 2522B 2524A 2524B 2525A Makopong MmathetheDigawana ! ! ! Nosop Restcamp Metlobo 22° E 23° E 24° E 25° E 26° E ! ! ! Goodhope ! GEOLOGICAL MAPPING PROGRESS Mokgomane R!akhuna REVISED HYDROGEOLOGICAL MAPPING PROGRESS 2523D ! ! B 36 B 28 2525DRamatlabama 20 21 22 23 24 25 20° E 25° E 30° E Khisana 2524C 2525C ! ! 2524D 2522D Leporung Tlapeng 2520D ! ! ! 2521C 2521D 2522C Kiyane TshidilamolomoLogagane ! ! ! Mokatako

CHOBE DISTRICT 4 4 2 2 Tshabong - - 26° S ! 26° S 2622B NGAMILAND DISTRICT 20° S 20° S Mc carthy's rust 2622A ! 2621A 2621B NORTH EAST DISTRICT

2620B 5 SHEET 10 5 2 2 CENTRAL DISTRICT - -

SCALE 1 : 1 500 000 SHEET 9 Mareetsane ! 2622CLokolong !! DISTRICT ! ! Magading 0 245 490 980 1,470 6 6 2620D 2 2 - - 2621C ! Middelpits 2621D SOUTH EAST DISTRICT SOUTHERN DISTRICTSOUTH EAST DISTRICT Rappel's Pan Kilometers ! Vergenoeg 25° S 25° S Vaal HoekBokspits ! SOUTH EAST DISTRICT !!

27° S 27° S 7 7 2 2 Users noting corrections on this map are - - requested to note them and send to: The CEO, Botswana Geoscience Institute Private Bag 14, Lobatse 20 21 22 23 24 25 20° E 25° E 30° E 20° E 21° E 22° E 23° E 24° E 25° E 26° E 27° E 28° E 29° E

Figure 1 : Progress in Geological Mapping as at June 2011

4 5 Botswana Mineral Projects and Prospects

2.2 Geophysics Data

Botswana Government has, between 1989 and 2003, conducted geophysical surveys totalling 1, 834, 545 line kilometres (line-km).

Figure 3 : Total Magnetic Intensity Map of Botswana 2011

2.2.2 Gravity Surveys

In addition to the aeromagnetic surveys, the embarked on national gravity data acquisition which started in 1972 to 1978 with a total 3265 stations. From 1978 to 1999 Government continued to acquire more gravity points through various projects including mineral and groundwater projects. Of significance was the helicopter supported gravity data acquisition and processing in Northern Botswana where a total of 4003 data points were acquired as well as establishment of gravity base stations through out the country to be within 200km of each other. In parallel to government surveys, private sector also acquired a number of gravity surveys such as the Anglo American Central Kalahari Project which was also helicopter support with total of 2195 stations and many more. The database has a total of about 25000 gravity stations.

Figure 2 : Government Funded Geophysical Surveys In 2011, the Government of Botswana funded a tie-line survey totalling 75000 line kilometres to merge all existing aeromagnetic surveys into seamless dataset to facilitate easy data manipulation and interpretation.

A 1: 1 000 000 Total intensity Magnetic Map of the country was produced based on Government and private sector data that comprised 2, 167, 297 line-km from 70 (seventy) individual aeromagnetic surveys. Figure 4 : Gravity Bouger Anomaly Map

4 5 Botswana Mineral Projects and Prospects

2.2.3 Radiometric Data

Airborne radiometric survey have been carried out in eastern Botswana (where there is very little cover of Kalahari Tertiary Deposits (sands and calcretes) in conjunction with the airborne magnetic survey.

Figure 5: Radiometric Data Coverage

2.3 Geochemical Data

Department of Geological surveys, Botswana, undertook regional soil geochemistry sampling of North West Ngamiland and Molopo farm areas. The map below shows area covered by the NW geochemical survey.

2.3.1 North West Nickel Distribution

Figure 7: Magnesium concentration distribution pattern

2.4 Borehole Data

Borehole information for both exploration and water borehole is available and covers the whole country. Exploration companies are expected to submit all borehole data for future references. Core from exploration boreholes is stored in the three core sheds, at Kang, Molapowabojang and Lobatse. Exploration borehole location map is shown in Figure 8.

2.5 Updating of the National Geological Map

The above data set are currently being used on the current project of detailed mapping of Botswana which is meant Figure 6: Nickel concentration distribution pattern to update the National Geology map of Botswana.

6 7 BOREHOLE DATA Botswana Mineral Projects and Prospects

20°0'0"E 22°0'0"E 24°0'0"E 26°0'0"E 28°0'0"E

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20°0'0"E 22°0'0"E 24°0'0"E 26°0'0"E 28°0'0"E

Legend Main road ! Settlement

Railway ³ Monitoring boreholes

International boundary ¼ Exploration boreholes

District boundary 90 45 0 90 180 270 360 Kilometers

Scale 1 : 6 000 000

Figure 8: Exploration Borehole Location Map 6 7 Botswana Mineral Projects and Prospects

2.6 Pre-Kalahari Geology Map

To promote mineral exploration, geophysics data collected by the government was augmented with data collected by the private sector (to cover 90% of Botswana land area) to conduct an interpretation of the Pre-Kalahari Geology. The Government has now embarked on a project (2020-2021) to update this National Map.

THE PRE-KALAHARI GEOLOGICAL MAP OF BOTSWANA 20°E 21°E 22°E 23°E 24°E 25°E 26°E 27°E 28°E 29°E

ANGOLA

18°S 18°S Tobera Mohemobo Wes!t ! · Savute !

19°S 19°S

Maun " Maitengwe 20°S ! 20°S

Sowa ! !

Kuke 21°S ! Francistown 21°S " " NAMIBIA Ghanzi " Lepokole ! ! S! elebi-Pikwe 22°S " 22°S Mogapi ! Baines Drift ! Matswane ! Chadibe 23°S Ncojane ! 23°S ! Machaneng ! ! A IC Ka!ng Buffels Drift R ! ! F A H T 24°S U 24°S Malotwana O ! S F Jwaneng Gaborone O " " IC L Kokotsha B ! U ! P 25°S Lobatse E 25°S Makopong " R !

Khisa Phitshane Molopo ! !

26°S 26°S Khawa ! Kolonkwaneng ! ! Mmalogong ! ! GEOLOGY COMPILED BY R.M. KEY, PhD. 27°S 1997 27°S

20°E 21°E 22°E 23°E 24°E 25°E 26°E 27°E 28°E 29°E

LEGEND Other Geological Information

" Major Towns/Villages Fault ! Village Dyke Main road National boundary Topo Data Source: Districts Dept of Surveys and Mapping Science Spatial Reference: GCS Botswana BNGRS02 SCALE 1 : 6 000 000 0 70 140 280 420 560 Kilometers

Figure 9: Pre Kalahari Geology Map

8 9 Botswana Mineral Projects and Prospects

3 Botswana Mineral Potential: By Commodity and Geological Provinces

3.1 Coal

Botswana has considerable coal deposits that have been previously estimated at 212 billion tons (Mostly hypothetical and Speculative categories). The coal occurs in various coalfields which are, Pandamatenga, Eastern (, Foley and Sese), Tuli, Morupule and Moijabana, Mmamabula, South Eastern ( and ) as shown on figure 10. Coal deposits remain largely unexploited, currently there are only two coal mines.

The two mines are Morupule Coal Mine in eastern Botswana which produces about 1.5 million tonnes per year and Masama coal project in south-western Botswana. The Masama Coal Project has a coal resource of about 380 million tonnes (Mt) and it is currently under developed by Minergy Coal. There are other mining licenses issued to Jindal in the Mmamabula coalfield and African Energy around Sese/Foley coalfield but there are not yet developed.

Preliminary results from an on-going study that seeks to classify coal resources according to their quality and quantity has revealed that Botswana coal resources are mostly Sub-Bituminous and has been estimated to have about 28.2 Billion tonnes (Bt) including measured, indicated and inferred resources from various Competent Person’s Report (CPR) of different reporting standards. Figures 10 below shows the distribution of various coalfields.

Figure 10: Coalfields map

8 9 Botswana Mineral Projects and Prospects

3.2 Coal Resource Estimation

The tables below show coal resource estimation, which is currently ongoing. The data that is used is from previous, current exploration reports and other reliable data sources which are compliant with International Reporting Standards. Only reports that are compliant with international reporting standards for coal resource estimation, (JORC, SAMREC, NI 43-101, etc) are used as data sources.

Table 1: Coal resource estimation

BGI Report

Identified (Mt) Coalfields Total (Mt) Demonstrated Infered Measured Indicated

Mmamabula 5,560.67 1,159.20 3,693.00 10,413.77

Dukwi TBC 508.00 414.00 922.00

Foley / Sese 651.00 1,714.00 2,653.00 5,018.00

Morupule 2,518.21 694.25 3,903.17 7,115.63

Masama 12.71 73.21 304.01 389.93

Dutlwe / Letlhakeng TBC 424.50 2,654.00 3,078.50

Mmamantswe 978.00 265.00 TBC 1,243.00

Total (Mt) 9,720.59 4,838.16 13,622.08 28,180.83

Location Tonnage Relative CV Mois- Raw Volatile Fixed Total Classification (Mt) Density (MJ / Kg) ture Ash(%) Matter Carbon Sulphur (Coal Rank) (%) (%) (%) (%)

Mmamabula 10,413.77 TBC 22.51 5.48 21.80 23.71 50.39 2.13 Sub-Bituminuos

Dukwi 922.00 TBC 19.95 6.44 27.41 22.33 43.83 0.35 Sub-Bituminuos

Foley / Sese 5,018.00 TBC TBC TBC TBC TBC TBC TBC

Morupule 7,115.63 TBC 19.20 3.99 37.16 23.19 TBC 1.69

Masama 389.93 TBC 21.60 4.83 24.3 25.9 45 2.26 Sub-Bituminuos

Dutlwe / 3,078.50 TBC 17.81 7.41 35.11 TBC TBC 1.88 Letlhakeng

Mmamantswe 1,243.00 TBC TBC TBC TBC TBC TBC TBC TBC

4 Opportunities for Diamonds, Base and precious metals

4.1 Diamonds and Kimberlite Fields

Large number of Kimberlite pipes are distributed on several fields across the country. The map below shows occurrence of kimberlite fields in relation to structural provinces and tectonic units. Some of these Kimberlites are of high economic importance to Botswana due to production of diamonds. New discovery of Kimberlites continues to date most notably at the kimberlite fields.

10 11 Botswana Mineral Projects and Prospects

20.000000 22.000000 24.000000 26.000000 28.000000

REPUBLIC OF BOTSWANA

Nxauxau Field 17 (2 Diamondiferous)

0 Kasane 0

0 ! 0 0 0

0 MAJOR STRUCTURAL PROVINCES 0 0 0 0 0 . .

8 AND TECTONIC UNITS 8 1 1

- - ! OF BOTSWANA

Okavango and Shakawe Zones

Gumare . ! Kihao-Khutse 0 0

0 field 23 0 0 0 0 0 0 0 0 0 . Maun Maitengwe .

0 Gweta ! 0

2 es ! 2 - c - en u Ghanzi-Chobe Zone eq Sowa ! s ! <

- la e - r B ve o ic t n Belt ar e Limpopo Belt p g in ro t O s i ru d c n n o ia g Complex rn a Martins Drift field 8 u M b d Mahalapye E n a is e h K

0 Kaapvaal Craton 0 0 0 0 0

0 Gope field 6 and 2 mined 0 0 0 0 0 . . 4 4 2 2 - - Jwaneng Kgatlheng field ! Gaborone

Jwaneng field 27 Mmathethe ! Pitsane ! 0 0

0 Legend 0 0 0 0 0

0 2 Carbonatite Tshabong 0 0 Kokong field 34 0 . ! TOPOGRAPHIC LEGEND . 6 pipes in 6 2 2 - Kokong ! Settlement - field Tsabong field 50 Build up area

Lekgobu field 8 Boarder GEOLOGICAL LEGEND

0 ! 0 0 < Copper Nickel 0 0 0 0 0

0 Okavango and Shakawe Zones 0 0 0 . .

8 (! Gold 8 2 2 - Ghanzi-Chobe Zone - Gold Occurences Eburnian crust in part overlain by late Kimberlites Proterozoic volcanic and sedimentary sequences

Kheis and Magondi Orogenic Belts

Mahalapye Complex 0 0 0 0 0 0

0 Limpopo Belt 0 0 0 0 0 . . 0 0

3 Zimbabwe Craton 3 - 0 35 70 140 210 280 350 Kilometers - Scale 1: 6 000 000 Kaapvaal Craton

20.000000 22.000000 24.000000 26.000000 28.000000

Figure 11: Map showing occurrence of kimberlite fields in relation to structural provinces and tectonic units

10 11 Botswana Mineral Projects and Prospects

Table 3: showing Kimberlite fields and the number of kimberlites

Kimberlite Field No of Kimberlites

Jwaneng 27

Orapa 80

Martins Drift 8

Gope 6

Kokong 34

Nxauxau 17

Kihao-Khutse 23

Okwa 8

Lekgodu 8

Tsabong 50

4.2 Geological

Botswana is mostly covered by recent sediment (Kalahari beds and the Karoo Sequence) with limited exposure in western side of the country. The country is sitting on stable cratonic regions being the Kapvaal Craton in the south and the Zimbabwean Craton in the north.

The Limpopo mobile belt separates these cratons. However there are other orogenic belts to the west of the two major cratons, namely the Kheis Magondi belt, the Kalahari Copper Belt (Ghanzi/Chobe) and the Damara Orogenic belt. The map below shows the cratonic terranes, the Kapvaal and Zimbabwe craton (Archaean) and the early Proterozoic mobile belts (Kheis Magondi, Ghanzi Chobe) and the late Proterozoic belt, the Damara Orogenic belt.

12 13 Botswana Mineral Projects and Prospects

20°E 25°E

Major Pre-Karoo tectonic terranes and major mafic-complexes El astern limit of damara folding E

4

7 5b

8

20°S l Maitengwe 20°S l Vumba

l R

2 l l 9a Tati 6 Matsitama

/2 3 3 X 5b 5a

Ts 1

9b

l Mf Ma 25°S 25°S l Fragment unit l 5d Kraaipan

SCALE 1; 6,000,000 0 40 80 160 240 320 Kilometers

20°E 25°E

Plate Boundary Zone between Weakly deformed 2/3 9b Okwa Belt Neoproterozoic rocks on? Limpopo Belt and Zimbabwe craton Paleoproterozoic crust 3 9a Nosop- Ncojane Basin Limpopo Belt * Neoproterozoic Damara 2 Archaean Terranes 8 Passarge Basin Orogenesis of Neoproterozoic & Zimbabwe Craton Mesoproterozoic rocks 1 with exposed greenstones 7 Kihabe complex Kaapvaal Craton The Limpopo Belt has undergone severe 6 Kwando complex * Palaeoproterozoic re-working Major Mafic Complexes 5d Ghanzi-Chobe Belt R ?

5c Palaeoproterozoic X Xade ? Kheis Belt Eburnian Terranes 5b Gweta Belt Ts ?

5a Mahalape Belt Mf Molopo Farms Palaeoproterozoic

4 ? Congo craton Md Modipe Archaeam

Figure 12: Map showing Metallogenic provinces

12 13 Botswana Mineral Projects and Prospects

Table 4: Showing relation of geology and mineral occurrence in the above map.

Tectonic Terranes Age Mineral Potential

Passage Basin Early Proterozoic

Kihabe Complex Late Proterozoic Copper, Silver, Lead, Zinc, Cobalt, Germanium and Vanadium

Kwando Complex Late Proterozoic Iron and Copper

Ghanzi-Chobe Belt Late Proterozoic Copper and Silver.

Okwa belt Early Proterozoic

Nossop-Ncojane Basin Early Proterozoic

Kheis-Magondi Belt Early Proterozoic

Gweta Belt Early Proterozoic

Mahalapye Belt Early Proterozoic

Limpopo Mobile Belt Archaean Nickel and Copper

Tati Schist belt Archaean Nickel, Copper and Gold

Vumba Schist belt Archaean Nickel, Copper and Gold

Maitengwe Schist belt Archaean Nickel, Copper and Gold

Matsitama Schist belt Archaean Copper, Gold traces

Kraaipan Archaean Iron and Gold

Zimbabwe Craton Archaean Nickel, Copper and Gold

Kaapval Craton Archaean Silver, Gold Iron and Manganese

Major Mafic Complexes

Rakops Early Proterozoic

Xade Early Proterozoic

Tshane Early Proterozoic

Molopo Farms Early Proterozoic Gold, Iron, traces of PGE, REE potential carbonatites

Modipe Archaean

14 15 Botswana Mineral Projects and Prospects

4.2.1 Geological Provinces: Molopo Farms Complex

Figure 13: Map showing. Molopo farms complex Geology

In 2006, The Botswana Government commissioned a study to assess mineral potential of Molopo Farms in southern Botswana. The project area spreads from Mabule in the East extending to Khisane in the west and to Takatokwane in the North.

The project identified 29 Potential sites for Precious and Base Metals (Cu (Copper), PGE (Platinum group Elements), Au (Gold), Ni (Nickel), Fe (Iron) and Rare Earths in Carbonatites in Mabutsane) and Coal located +/- 150m below ground. The 29 sites are still a subject of interest for private sector exploration.

a) Mabutsane Area: Gold, nickel-copper and copper-lead –zinc deposits (Mapeo, 1989) within the amphibolites and schists of the Kraaipan group, however the economic deposits have not been proven.

b) Phitshane Area: Banded Iron Formations of the Kraaipan group are potential sites for Iron ore (Aldiss, 1985).

c) There are currently 32 Prospecting Licences in the area for various mineral commodities listed below:

i. Energy Metals – 1 ii. Precious Stones -5 iii.Precious and Base Metals – 15 iv. Industrial Minerals - 11

4.2.2 Geological Provinces: Kalahari Copper Belt

The Kalahari Copperbelt (KCB) is late Mesoproterozoic to Neoproterozoic belt that extends from Namibia into Botswana and hosts strata bound sediment-hosted Cu–Ag districts.

Figure 14: Kalahari Copper Belt

14 15 Botswana Mineral Projects and Prospects

4.3 Rare Earths

Rare Earths in Botswana remain largely unexplored despite occurrence of numerous granitic rocks in Botswana. Lusty et al. 2012 of British Geological Survey, assessed the potential for REE mineralization in the Precambrian igneous rocks in Botswana.

The focus area for the study was the Semarule Syenites, Mahalapye and Mokgware Granites, Moshambe, Timbale, Domboshaba Granites and Kalakamate Monzonite shown in figure 16.

The total REE (TREE) of the above sampled areas varied highly and ranged from <10 to >2000 ppm, with the highest values obtained from the Semarule syenites, Mahalapye Granites and Domboshaba Granites. The same reports also indicates that, two samples from Semarule Syenite have highest concentrations of Lithium. GRANITE COMPLEXES IN BOTSWANA SHOWING COBALT CONCENTRATION IN PPM 26°E 28°E

! Sowa Ramokgwebana ! · Francistown ") Orapa ")

Lepokole ! Semolale Tobane ! ! 22°S Selebi-Pikwe 22°S ")

Mogapi !

Baines Drift !

Chadibe ! Machaneng !

TOPOGRAPHIC LEGEND ¬ Cities ! Village Buffels Drift ! Main road

National boundary

24°S Districts 24°S

! 26°E 28°E

GRANITOID ROCKS L i t h i u m _ p p m UNMETAMORPHOSED INTRUSIVE ROCKS Ultramafic schist 0.000000 - 7.000000 Dolerite sheet and stock Mafic gneiss ( hornblende-gneiss, Granitic dyke amphibolite-gneiss) 7.000001 - 14.00000 Tonalitic orthogneiss Diorite (Hm Monzonite) (deformed tonalite pluton) 14.000001 - 36.0000 Gabbro Monzonitic orthogneiss (deformed monzonite pluton) 36.000001 - 90.0000 Felsite E E E

Y Y Y Y Granite G3g ( adamellitic) E E E Granite Y Y Y Y Metadolerite dyke (a) wide 90.000001 - 1450.00 E E E Y Y Y Y (b) narrow

SCALE 1 2 500 000 Topography: Dept of Surveys 0 25 50 100 150 200 and Mapping Science Kilometers Spatial Reference: GCS Botswana BNGRS02

Figure 15: Granitic Complexes of Botswana showing battery metals concentration results from BGS Sampling Points

16 17 Botswana Mineral Projects and Prospects

Figure 16: Granitic Complexes of Botswana showing REE concentration results from BGS Sampling Points

16 17 Botswana Mineral Projects and Prospects

4.4 Industrial Minerals and Construction Aggregates minerals constitute to natural construction and building aggregate (See industrial minerals map of Botswana). 4.4.1 Slates In Botswana, construction aggregate occur as granular Botswana has a significant volume of different types of materials suitable for use either on their own or with slate by different colours. These slates have good strength the addition of cement, lime or a bituminous binder in and durability for use as flooring material and are resistant construction. Important applications include concrete, to cracks, scratches, breaks and chips. The southern and manufactured sand, mortar, road stone, asphalt, railway part of the eastern part of Botswana has well exposed ballast, drainage courses and bulk fill. slate deposits which has not yet been tapped for industrial purpose.

Figure 17: Dipotsana slate is grey in colour when it is fresh, but it weathers reddish-brown depending on the period it took in contact with the fluids which results in oxidation of the top most surface of the slate.

4.4.2 Aggregate for roads and building Construction

The geology of Botswana plays a significant part in the country’s economy. The basement rocks of the Kaapvaal- Zimbabwe craton extend into Botswana whilst in the east and southeast, metamorphic rocks of Archaean age are dominant. Figure 18: Coarse to medium grained found both in the eastern and southern Botswana, the material qualify for road and building construction. Further crushing of these rocks, using cone crushers All these rocks which are predominantly non-metallic produces manufactured sand, which is suitable for construction buildings.

18 19 INDUSTRIAL MENIRALS OCCURRANCE IN BOTSWANA Botswana Mineral Projects and Prospects 20°E 21°E 22°E 23°E 24°E 25°E 26°E 27°E 28°E 29°E

ANGOLA Ç?! 18°S 18°S Tobera Mohemobo Wes!t !! · ?!? ?! Savute ZIMBABWE ! ?!?!?! ?! ?! 19°S 19°S

Maun " 20°S Maitengwe 20°S ?! ! ?! ?! ?! Sowa ?! Ramokgwebana Ç ! ? ?!?!?! ?! ?? ?! # ??!# Kuke ## #?# 21°S ! Ç#?!?!ÇFrancistown 21°S Orapa # ?#Ç"?! " ?Ç NAMIBIA ?!?! ? ?! Ghanzi ? " # #Lepokole ?! ?! ### ! # # ?!! ?!? #S! ele?b?i-Pikwe 22°S ?! # # ##"# #?!? 22°S ?! ?!# ###M##ogapi? ?! Ç! # #!# ?! ?! ?! ###Ç #?!# ## #?! Baines Drift ?! ###! ! ?! # ?!?!#

20°E 21°E 22°E 23°E 24°E 25°E 26°E 27°E 28°E 29°E

KEY Industrial Minerals " Major Towns/Villages i[ Clay Quarry ? River Sand Quarry ! Village Ç Aggregate Quarry Main road ?! Gravel Barrow Pit National boundary

SCALE 1 : 6 000 000 Topo Data Source: Dept of Surveys and 0 70 140 280 420 560 Mapping Science Kilometers Spatial Reference: GCS Botswana BNGRS02

18 19 Figure 19: Industrial Minerals Map Botswana Mineral Projects and Prospects

4.4.3 Ornamental Stones

Botswana government has recently embarked on the identification and assessment of granites as ornamental stones.

The results has shown vast amount of potential for ornamental stones in the Southern and North-eastern Botswana, with good strength and different shades of colours (See Industrial minerals map of Botswana).

4.4.5 Cement Grade Calcretes

Figure 21: Clay deposits in Botswana is used mostly for brick making. Small portion of it is used in pottery, of which most of it is exported to neighbouring countries.

Botswana imports about 100% of its cement from neighbouring countries after the closure of Matsiloje cement plant. Currently the government is evaluating limestone deposits in the country that are sufficient to sustain a cement plant in order to reduce the import of cement. Two areas have been assessed in terms of both quality and quantity. These areas are Gasita and Letlhakeng in the southern part of the country.

Figure 20: Some of the granites (ornamental stones) similar to those found in the Greater Gaborone and North eastern Botswana, showing 4.4.5.1 Gasita Calcrete Deposit different shades of colours and textures. The Ngopilo hill, Moletsane and Segeng areas are situated 4.4.4 Clay Deposits on the Gasita area. Gasita is a small village in the Southern District about 65km Southwest of Kanye. Ngopilo hill Clay in Botswana is associated with Karoo Sediments of forms a gentle dune rising towards the southwest of the Ecca group widely spread throughout the country. Ngopilo Pan. Clay is mined at Makoro, Lobatse and Dipotsana for brick production. In the assessment of the Ngopilo Hill, Moletsane and Segeng calcrete deposits, 10 boreholes were drilled at (See industrial minerals map of Botswana). Ngopilo, 9 boreholes at Moletsane Pan and 13 boreholes at Segeng Pan The three calcrete deposits have average thickness ranging from 1.7m to 4.1m which qualified to be cement grade as per South African Bureau of Standards (SABS) for cement manufacturing.

The Ngopilo, Segeng and Moletsane deposit each have a total calcrete resource estimation of 991024, 446 591 and 336 016 tonnes respectively, which brings the Gasita deposit to have a total calcrete resource of 1,773,631tonnes.

4.4.5.2 Letlhakeng Calcrete Deposit

The area under investigation is located in , southeast of Letlhakeng village about 75 km Northwest of Molepolole.

The area lies at the confluence of Gaotlhobogwe and Letlhakeng rivers. The area is divided by the fossil valley that is defined by a very low topography, whereas the target area is mostly topographic high in both sides of the

20 21 Botswana Mineral Projects and Prospects

fossil valley. Topography of the area can be described as undulating with the altitude ranging from 1070m and can reach altitude of about 1090m. This area is within the vicinity of the Letlhakeng village hence makes it an ideal area for future mining development as the infrastructures like roads and necessary utilities are within reach with ease.

Resource assessment was carried out in Letlhakeng including drilling of fifty-three boreholes with the deepest boreholes of 30m. Drilling was informed by positive results from detailed surface sampling. The results were positive since they qualified as per South African Bureau of Standards (SABS) for cement manufacturing.

During drilling most of the boreholes drilled intersected calcrete with various thickness ranging from 3m to 18m. Drilling was conducted in order to calculate the resource and to check the quality of the calcrete with depth and 888 samples were from drill core was analysed and over 65% of the samples qualified as per SABS. The preliminary resource estimation of Letlhakeng calcrete deposit is approximately 139,000 million tonnes (Mt).

Figure 22: Location of the study area and topographic elevation from ASTER DEM.

20 21 Botswana Mineral Projects and Prospects

Maitengwe Greenstone Belt

The main objective of this literature review was to combine data sets in the area and reinterpret in order to check if the area has mineral prospective targets to be considered for drilling.

Regional Geology

The geology of the area is covered by the Archaean Zimbabwe Craton which can be subdivided into Francistown Granite- Greenstone Complex, Mosetse Complex and Motloutse Complex. The Francistown Granite- Greenstone Complex is made up of the Greenstone belts Maitengwe, Vumba, Matsitama and Tati) which are mainly made of volcanic rocks metamorphosed in the greenschist and lower amphibolite facies. These greenstone belts are intruded by voluminous tonalites, followed by late- tectonic granodiorites, monzonites and granites. The Maitengwe Greenstone Belt is found in the North- Eastern part of Botswana near Maitengwe village. The area is relatively flat with no or limited outcrops. It covers an area of approximately 484 Sq. Km. The proposed area can be accessed from Francistown through a tarred road via and Nkange village. There are also other motorable tracks.

The Mosetse Complex Consists of sediment-dominated supracrustral sequences which experienced higher grades metamorphism and gneissosity. Granitoids including tonalites, granodiorites and granites which are thought to be syn-tectonic.

Amphibolite sheets were observed within granitoid gneisses. Motloutse Complex consists of meta- sedimentary and para-gneissic rocks of the same protolith types to those in the Mosetse Complex. The rock units are of granitic composition and composed of migmatitic and megacrystic varieties (Carney, 1994).

Local Geology

Three sequences of meta-sedimentary and meta- volcanic rocks are present in the area namely:

The Mpapho Banded Ironstone Formation This formation consist of units of quartzo-feldspathic rocks, serpentinite and amphibolite which are intercalated with banded ironstones. Banded ironstones are generally finely laminated to bedded silica bands with varying amount of iron oxides.

Figure 23: Regional Geology and major tectonic units of Botswana in relation to Maitengwe Study Area Fig: The map illustrate regional geology and major tectonic units of Botswana in relation to Maitengwe 22 study area (red box). 23

Botswana Mineral Projects and Prospects

Fig: The map illustrate regional geology and major tectonic units of Botswana in relation to Maitengwe 22 study area (red box). 23

Botswana Mineral Projects and Prospects

The Mazuwe Amphibolite

There are three types of amphibolites; the grey to black, granular amphibolite weakly foliated with some sparse felsic mineral probably feldspars; the gray to grayish green medium to coarse grained massive variety with quartz/ carbonate alteration; and the extensively foliated tremolite/ actinolite (ultramafic) schist.

The Sokwane Quartz - Sericite Schist

Band Ironstone outcrops show Interbanded quartzite with siliceous banded ironstone. The outcrop exhibits numerous fractures infilled by quartz veinlets and enriched iron oxides (hematite and magnetite). Drill hole intersected quartz sericite schist dipping to the north at a Figure 24: Local Geology around the Maitengwe Study Area very high angles (Chatupa, 2000) see the figure 24.

A number of studies have been done and the results • Lithological contacts which are conduits for gold show that previous work was not detailed as only few bearing fluids. boreholes were drilled to the maximum depth of 200m. The boreholes were terminated within the hydrothermally altered lithological units showing both proximal and distal Economic Potential of Magondi Orogenic Belt in alteration mineral assemblages. The geochemistry survey Botswana line spacing was very large as it was 500m apart. The Magondi Supergroup is mainly metasedimentary The results from geochemical analysis indicate that succession with minor mafic and intermediate to felsic only a few trace elements were analyzed, therefore it metavolcanics which is found in the early Proterozoic became more important to analyze more trace element Magondi Mobile Belt of Western Zimbabwe, extending as their association can be used as pathfinders. Previous south west into Botswana. It is subdivided into the geochemistry analysis show presence of both gold and Dewaras, Lomagondi and Priwiri groups, which were copper mineralization (Chatupa, 2000). deposited between 2.1 02.0 Ga.

The mineralization is controlled by structures like shear In addition to the above, lithologies of the Dete-Kamativi zones, faults and lithological contacts but from the Inliers of North West Zimbabwe are aslo part of the previous work there was no structural interpretation Magondi super group. The Magondi Supergroup was conducted in this area. deformed into a thin and thick-skinned fold thrust belt and metarmophosed from greenschist to granulite From the work done in this area, it has been established facies during the C2.0-1.8 Ga, Magondi Orogeny, and was that, the Arhean Greenstone Belts mostly consisting of also affected by the irumide and Pan African Zambezi felsic intrusions (quartz feldspar porphyry) are possible orogenisis. The Deweras group unconformably overlies gold bearing rocks the main source being hydrothermal the granite green-greenstone terrane of the archaen fluids. Further investigations should focus on: Zimbabwean craton. The Deweras group is inturn unconformably overlain by the Lomagondi group. • High strain deformation zones; generally major breaks of 100 km’s The Magondi Belt has proved to be highly economically • in length and several km’s in width, simple shear zones important in Zimbabwe. There is evidence that it extends which are conduits for Au-bearing fluids. southwards into Botswana, where it is believed to be covered by karoo sediments. Therefore there is a need to • Smaller scale splay faults; generally oblique (low angle), know the extent of this belt in Botswana and determine dilational zones of enhanced permeability which occur its economic importance if there is any. within and outside major deformation zones.

24 25 Botswana Mineral Projects and Prospects

Figure 25: Regional Geology and Geophysical Setting of Magondi Oregenic belt

Assessment of mineral potential of the Lesoma (ne) and Etsha-West (NW) areas.

Areas of interest in this study, fall within the Damara tectonic belt (Figure 26). The Damara tectonic belt is a complex domain of Proterozoic rocks that were deformed and metamorphosed during the Pan-African orogeny, occurring in Latest Proterozoic and earliest Phanerozoic time, between about 630 and 500 Ma (e.g. Miller 1983a).

The orogeny is interpreted by many workers as the closure of a rift, or series of rifts, which had accumulated sedimentary and volcanic rocks of the Damara Sequence (SACS 1980). Derivation of this Damara infill is primarily from an Eburnian (2000 Ma) source (Hawkesworth and others 1986).

Other components of the orogenic belt include syn- to post- Pan-African granites, and basement inliers of diverse lithology with ages ranging between 1730 and 1060 Ma (Cahen and others 1984).

Fig: Outline the spatial extent of Archean cratons and Proterozoic orogenic belts. White lines represent the fault system of the The spatial extent of Archean cratons and Proterozoic orogenic belt. White line FigureOkavango 26: Rift Zone. The square box highlights the regional extent of the study area(Lesoma and Etsha West indicated by box A representand B respectively) the fault. Modified system after Singletary of the etOkavango al. [2003] and Rift Begg Zone. et al. [2009]. Modified after Singletary et al. (2003) and Begg et al. (2009)

24 25 Botswana Mineral Projects and Prospects

The extension of the Damara Belt in Botswana contains a succession of volcanic and sedimentary rocks, metamorphites and granitoids with at least some components of the latter two consisting of Kibaran-age basement reworked during the Pan-African orogeny (Figure 26). Mineral Accounts Botswana is an implementing partner to the Wealth Accounting and Valuation of Ecosystem Services (WAVES) - a global partnership led by the World Bank that aims to promote sustainable development by mainstreaming natural capital in development planning and national economic accounting systems, based on the System of Environmental-Economic Accounting (SEEA). The WAVES global partnership brings together a broad coalition of governments, UN agencies, non-government organizations and academics for this purpose.

The Government of Botswana through BGI undertakes mineral accounting under this partnership National Mineral Accounting under this global partnership, carried out by the Government of Botswana (GoB) and the World Bank.

Mineral Accounts provides information on five commodities being diamonds, coal, copper-nickel, soda ash and gold.

The information from the mineral accounts is of critical importance to Botswana’s economy and the national balance sheet. Mining in Botswana, continues to be the largest contributor to Gross Domestic Product (GDP), generating the majority of export earnings, and making major contribution to government fiscal revenues. Mineral accounts are intended to ensure that majority of Botswana’s export earnings. (See figure 27) appropriate decisions are taken regarding the The mining sector has been the second best after the investment of mineral revenues to provide for future general government in creation of employment (See economic growth. The objectives of mineral accounting figure below), except in 2016 where it was surpassed are; by manufacturing, trade hotels & restaurants, banks, insurance and business services. • Quantifying the major physical trends in resource stocks for major minerals; • Quantifying the major monetary trends in resource stocks for major minerals; • Estimating the rent generated by each of the major minerals; • Producing estimates of national mineral wealth; • Producing estimates of mineral depletion;

35

30 Agriculture Mining

25 Manufacturing Water & Electricity Construction Trade, Hotels & Restaurants

20 Hotels & Restaurants Water & Electricity Banks, Insurance & Business Services General Government

15 Social & Personal Services

10 Figure 28: Compensation of Employees by Industry (Statistics Botswana (2017)

Percentage Concentrationto Total GDP Total Concentrationto Percentage This observation can be attributed to BCL mine closure. It is therefore important to sustain the whole value

2004 2006 2008 2010 2012 2014 2016 chain of mining starting from exploration in order to

-5 help sustain employment.

Agriculture Trade, Hotels & Restaurants

Mining Transport & Communication Mineral accounts have emerged as a useful tool Manufacturing Finance & Business Service of measuring natural capital (Resource Value and Water & Electricity General Government Resource Rents). The mineral asset value is used to Construction Social & Personal Services track its macroeconomic management to ensure long- Figure 27: Contribution of Gross Value Added to GDP by kind of Economic term sustainability. Countries like Botswana, which are Activity (Statistics Botswana 2017) more contingent on mineral resources, should be on a The mining sector has long been the dominant sector sustainable path if the mineral asset value is converted of Botswana’s economy. It continues to be the largest to other forms such as produced, human and financial contributor to GDP, government revenues and form capital.

26 27 Botswana Mineral Projects and Prospects

Mineral accounts measures this value, addresses policy and computes the depletion component of rent that is used as an input for the calculation of the Adjusted Net National Savings (ANNS).

The depletion component of mineral consumption takes into account the lifetime of our mineral resources and the produced annual rents according to the following formula: 𝑹𝑹𝑹𝑹 𝑫𝑫𝑫𝑫𝑫𝑫𝑫𝑫𝑫𝑫𝑫𝑫𝑫𝑫𝑫𝑫𝑫𝑫 = 𝒏𝒏 Where: RR = annual resource rent, r = chosen discount𝟏𝟏 + 𝒓𝒓 rate, and n = lifetime of mineral deposit (to exhaustion). The depletion component gets larger as the remaining lifetime

of the depositWhere: RR gets = annual shorter. resource Inrent, aggregate, r = chosen discount the rate,lifespans and n = lifetimeof Botswana’s of mineral deposit mines (to (notablyexhaustion). The depletion component gets larger as the remaining lifetime of the deposit gets shorter. In aggregate, the lifespans diamondof mines) Botswana’s are mines relatively (notably diamondlong, while mines) the are relativelydepletion long, comp while theonent depletion is relatively component small is relatively see small see the figure below. the figure below.

18, 000

16, 000

14, 000

12, 000

10, 000

8, 000

6, 000

P million, Current Prices 4, 000

2, 000

0 1991 1981 2011 1993 1983 1979 1997 1995 2013 1987 1985 1999 2015 1989 2001 2003 2007 2005 2009

Total Rent

Figure 29: Depletion Components of rent (Economic Accounting of Mineral Resources 2016/17) In line with the above mentioned, the policy recommendations for mineral resource sector development were as Figure X:follows; Total rent versus depletion component of rent, Source: BGI, Mineral Accounts Comment [JBM3]: Doc. We may have to change this graph

• A need to look beyond diamond mining alone in order to improve diversification. Comment [A4]: I think we must remove it because the series • The mining sector to take advantage of growth potential in Coal and Copper - Nickel and monetize it for the going up to 2017 are extrapolated since the capital stork is benefit of the government. not available. In line with• Maximize the above mining mentioned sector revenue the from policy downstream recommendations activities. for mineral resource sector • Research to unleash investment areas and appropriate decision making in mining. development were as follows;

§ A need to look beyond diamond mining alone in order to improve diversification. § The mining sector to take advantage of growth potential in Coal and Copper - Nickel and monetize it for the government benefit. § Maximize mining sector revenue from downstream activities. § Research to unleash investment areas and appropriate decision making in mining.

Prospects of Mining in Industry Botswana

26 27

Page 5 of 7

Botswana Mineral Projects and Prospects

For Further information , Contact

Postal address: Private Bag 0014, Lobatse, Botswana Physical address: Plot 1734, Khama 1 Avenue. Telephone: (+267) 5330327 Fax: (+267) 5334295 Email. [email protected]

28 PB