The Voice (Francistown)
Chedza Simon
9 July 2007
The Permanent Secretary in the Ministry of Minerals, Energy and Water Resources has said that coal based projects will increase coal production for the country by more than ten folds by 2012.
Speaking at the Coal Conference held at Gaborone International Convention (GICC) Center last week, Akolang Tombale said the planned expansion of the Morupule Coal fired Power Station and the planned Mmamabula Export Power Station project, as well as the extensive evaluation of coal bed methane gas will further boost coal production in the country.
He said the conference, running by the theme 'the awakening of the coal giant', offers a unique opportunity to promote coal resources and to showcase what the country has to offer to potential investors. He said: "The abundance of coal resources in Botswana has been known for a long time but economics have in t he past conspired against significant exploitation of coal. The situation has changed and Botswana coal is very much in demand outside the borders of the country. The emerging economies of China and India have led the growth in demand for coal internationally and represents potential markets for Botswana coal. "
The permanent secretary said closer to home, the increasing power demand in SADC offers this country an opportunity to transform from a net importer of power to a net exporter leveraging on its coal resources. "I invite both local and foreign investors to invest in Botswana coal and associated industries. The investor friendliness of this country, is well documented and we are highly rated in the provision of an enabling climate for investment," said Tombale.
He noted that the country has a vibrant financial sector with a number of commercial banks, insurance companies, the stock exchange and the International Financial Services Center. "Botswana has one of the most progressive mining codes in the world. There is stability and predictability in the mineral legislation. Some of the highlights of our mining code are the grant, renewal and transfer of mineral concesssions which are virtually automatic and predictable subject to only a few explicitly stated conditions with very little scope for the Minister's discretion; provision for retention license that allows a company that has completed an exploration programme and confirmed the discovery of minerals to retain rights over mineral deposits," he said.
Tombale also explained that the code also allows a general tax regime that applies to all minerals except diamonds, with corporate income tax at 25 percent and immediate 100 percent capital write off in the year that investment is made with unlimited carry forward of losses.
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