Ministry unawares of economic deposits in freehold land in Bobirwa

The Ministry of Minerals and Energy is not aware of any reports of a discovery of a deposit that is deemed economically viable to mine in a freehold land within Bobirwa District.

Portfolio Minister Lefoko Moagi told Parliament in response to a question from Member of Parliament for Bobirwa, Taolo Lucas, who wanted to know whether there are any mining explorations in freehold land in the Bobirwa area and if there are any such deposits, are they economically viable to mine.

Moagi confirmed that there is currently ongoing prospecting for various minerals, including amongst others, metals, precious stones, energy minerals and industrial minerals in Bobirwa District.

Moagi confirmed that the concessions cover both tribal land and freehold land.

MP Lucas also wanted the minister to state: protocols for mining exploration in freehold areas; whether there has been mining exploration so far done in freehold land, if so, where such activity has taken place?

In response, Moagi explained that exploration for petroleum in Botswana is regulated under the Petroleum Exploration and Production Act, while prospecting for and mining of minerals in Botswana are regulated under the Mines and Minerals Act.

In terms of the two pieces of legislations, all rights of ownership of minerals and control over petroleum over any land in Botswana are vested in the Republic, and no person is to undertake any exploration, prospecting or mining operation, without a relevant licence issued under the respective Act.

Moagi indicated that control over petroleum resources and ownership of minerals in Botswana is irrespective of ownership of the land.

To exercise their rights of exploration, he said prospecting or mining, anywhere in Botswana, the holder of an exploration licence for petroleum or the holder of a concession for any mineral, needs first to get consent from land owner, or land occupier, before they can undertake any work on the land as per the approved programme of work.

“Exploration for petroleum under the Petroleum Act, and prospecting for and mining of minerals under the Mines and Minerals Act happens all over the country, including in State Land, Tribal Land and Freehold Land. These activities are currently happening in freehold land throughout the country,” Moagi said.

Lucas had also wanted the Minister to state the formula for taxation and royalties from such mining activities.

Moagi told Parliament that taxation for mining operations, unless otherwise agreed from negotiations for a mining licence, is determined in terms of the 12th Schedule of the Income Tax Act.

The minister explained that royalties payable to Government for minerals mined and sold are determined by Section 66 of the Mines and Minerals Act, and they are determined as a percentage of the gross market value of the minerals sold.

Moagi who is also MP for Ramotswa stated that specifically, royalties are payable at the rate of 10 percent for Precious Stones, five percent for Precious Metals and three percent for other minerals or mineral products.