New amendments to Botswana’s Mines and Minerals Act came into effect in early October, requiring mining companies to sell no less than 24% of any new mining rights to local investors, unless the government exercises its right to purchase this share.

The previous law granted the government the right to acquire 15% of the shares in any mining project upon licensing, with the possibility of increasing the percentage in diamond projects.

However, the new amendment raises the local ownership ceiling, a move authorities say aims to enhance citizen participation in exploiting natural resources and ensure the national economy benefits from mining revenues.

Botswana is the world’s largest diamond producer by value and is also seeking to establish itself as an emerging destination for copper mining.

The new law is expected to attract local pension funds and national investors to the mining sector, broadening the shareholder base and reducing the dominance of foreign companies.

The Ministry of Minerals and Energy clarified in a statement that the legislation not only raises local ownership percentages but also requires companies to establish funds for environmental rehabilitation after mining operations end, in addition to encouraging value-added activities within the country.