DUBLIN--(Business Wire)--
Research and Markets
(http://www.researchandmarkets.com/research/761e76/botswana_mining_re) has
announced the addition of the "Botswana Mining Report Q4 2009" report to their
offering.
This Botswana Mining Report provides industry professionals and strategists,
corporate analysts, mining associations, government departments and regulatory
bodies with independent forecasts and competitive intelligence on Botswana's
mining industry.
Exploitation of rich mineral reserves, especially diamonds, has been a
significant driver of Botswana's rapid economic growth. Notably, the mining
sector of Botswana contributes in double digits to the country's GDP. Diamonds,
along with copper and nickel, are the major focus areas in metal and mineral
exploration, and earn more than three-quarters of the country's export revenues.
The authorities of Botswana have an impressive track record in garnering the
maximum benefit from the production of diamonds, and the publisher expects this
trend to continue over the coming decade. Diamonds currently dominate the
economy - contributing approximately 36% of GDP, 75% of merchandise exports and
45% of government revenue - but with output set to decline, the government has
enacted a number of measures to ensure that revenues are used to aid
diversification. For example, a fiscal rule has been adopted which states that
mineral revenues must be used to expand the economy's productive base, rather
than fund consumption expenditure. Thanks to this rule, and other initiatives
enshrined in successive six-year National Development Plans and the long-term
policy Vision 2016, growth in the non-mining sectors is burgeoning. Copper and
nickel are both key export earners for Botswana. Copper and nickel exports
totalled BWP4.5bn in 2008 - second only to diamonds according to figures from
the Central Statistics Office (CSO).
The worldwide financial crisis has had a severe impact on Botswana's mining
sector. A slump in the global jewellery market and the cutting and polishing
industries is forcing diamond producers such as Debswana - a 50:50 joint venture
(JV) between Botswana's government and De Beers - to cut output and layoff
workers. In Q408, global demand for diamonds fell and Botswana's exports fell to
virtually zero. Lower consumer demand and reduced credit will mean that sales
are unlikely to return to precrash levels for some time yet. As a result, the
performance of the diamond sector in 2009 is expected to be weak. In June it was
announced that Botswana is to receive a US$1.5bn loan from the African
Development Bank in order to make up a budget deficit estimated at 13.5% of GDP
for the current year. The budget gap has increased as a result of
lower-than-budgeted commodity prices, particularly for diamonds.
Also in June, figures from Botswana's Central Statistics Office showed that
first-quarter mineral production was down slightly. Copper-nickel matte
production (from the BCL mine in Selebi-Phikwe) stood at 10,199 tonnes (down
from 14,331 tonnes in Q108). Coal output stood at 219,559 tonnes for Jan-Mar
2009, with soda ash output standing at 49,389 tonnes. Most strikingly of all,
the figures from the CSO showed that there was no diamond production within
Botswana over Q109 as demand for the gemstone fell sharply.
Industry Forecast The diamond sector has served the country well in recent
years, having delivered healthy current account and fiscal surpluses. However,
falling diamond prices are expected to retard the mining sector in the short
term, with exports slumping in Q408. Sales are expected to remain weak in 2009.
Indeed, in 2008, the author estimates that the mining industry shrunk by almost
6% in real terms, with a further contraction forecast for 2009. By the end of
the forecast period, however, the sector should be returning to growth. By 2013
the publisher expects the industry to reach a value of US$6.32bn, up from
US$3.39bn in 2009. Meanwhile, a fall in output in 2009-2010 will extend the
lifetime of discovered deposits, as will a decline in the rate of investment
over the same period. Diamond output is predicted to decline sharply after 2021
as deposits are exhausted, forcing the government to concentrate on the
development of other sectors in order to maintain a robust growth trajectory.
Key Topics Covered:
* Executive Summary
* SWOT Analysis
* Special Focus: Outlook For Global Mining
* Industry Trends And Developments
* Business Environment
* Political Environment
* Industry Forecast Scenario
* Competitive Landscape
* Appendices
Companies Mentioned:
* De Beers Botswana Mining (Debswana Mining)
* Tati Nickel Mining Co
* African Diamonds
* African Copper
For more information visit
http://www.researchandmarkets.com/research/761e76/botswana_mining_re
Research and Markets
Laura Wood, Senior Manager,
press@researchandmarkets.com
U.S. Fax: 646-607-1907
Fax (outside U.S.): +353-1-481-1716
Copyright Business Wire 2009
