PERTH (miningweekly.com) – Botswana is hoping to revive its resources sector through the introduction of new legislative measures, an official from the Minerals, Energy and Water Resources Ministry said on Wednesday.

Permanent secretary Gabaake Gabaake said in Perth that the proposed changes to the legislation would be effected by the end of 2011.

"The new minerals policy objectives will ensure that economic benefits for Botswana are maximised from the resources recovery, while enabling private investors to earn competitive returns," he said.

"We take seriously the return to investors from projects and we have ensured such investors can repatriate profits so that a competitive environment to stimulate minerals exploration and exploitation ensues.

Gabaake said that Botswana would aim to issue prospecting licences within 60 days of application, mining licences within 30 days and to issue diamond export permits within two days.

He also said that the strategy included a switch to minerals beneficiation and downstream activities in Botswana, if feasible, and to encourage diversification. The government was also looking to sell all diamonds produced in Botswana, within Botswana.

Suppliers are also being encouraged to manufacture mining consumable such as reagents and equipment spares, at a local level.

"The turnaround strategy is working, with the latest Fraser Institute report ranking Botswana as the highest-ranking African country for attractiveness of mining policy," Gabaake said.

"Such surveys have highlighted the access to road, power and skilled labour pools as areas of major concern needing addressing, and as a result, we are now running a budget deficit to bring on stream major projects as the Morupule colliery expansion and the 600-MW Morupule B power station to boost electricity supplies.

Gabaake said that the deficit also allowed for the construction of three dams to meet water demand and feasibility studies were under way on improving the rail networks, particularly as used for minerals projects.

Botswana saw its 2009 diamond production collapse to 17,7-million carats from 32,6-million carats in 2008, when the global financial crisis hit demand for gemstones.

"A significant improvement in diamond production is expected by the end of 2010, as markets are now recovering," Gabaake said.

Botswana's 2009 diamond output accounted for 14% of world diamond output, commanding 17% of the total world diamond production value of $8,6-billion.

Gabaaka noted that the impact of the downturn was felt at employment levels, with average job levels in Botswana's mining sector falling to 15 359 last year, 18% lower than the sector's 18 820 jobs capacity in 2008.