Botswanan Minister of Minerals and Energy Lefoko Moagi said on Wednesday that the southern African country’s mining sector presents promising opportunities despite the challenges posed by Group of Seven (G7) sanctions.
Against the backdrop of the Russia-Ukraine conflict, the G7 countries decided to impose sanctions on Russian diamonds and even diamonds from all countries, which would put pressure on Botswana, Moagi said during the Future of Mining Summit held in Gaborone, the capital of Botswana.
According to the sanctions, from March 1, 2024, Russian diamonds of 1 carat polished or 2 carat rough and above have to be G7-certified before being sold to G7 countries. The G7 further mandated that from Sept. 1, 2024, diamonds of 0.5 carat polished or 1 carat rough and above from all diamond-producing countries will have to be G7-certified before being sold to G7 countries.
“This will put a lot of pressure on Botswana and other producing countries,” Moagi told the two-day forum, which begins Wednesday, adding that the decision will result in additional costs and longer time to ship goods to customers and may have unintended consequences due to increased costs and time delays for non-Russian diamonds.
Another key concern is that tracing and provenance technologies have some limitations, and it may not be possible to supply enough machines globally to meet the G7 timelines, he said.
“Despite the several constraints that the industry has to surmount, Botswana’s mining sector presents promising opportunities, with notable developments in different sectors,” declared the minister.
Moagi said notable developments have been visible in the diamond and, lately, copper sectors, which will play a significant role in job creation and economic growth opportunities in the medium and long term. In an additional effort to ensure sustainability in the mineral sector, Botswana has recently established three companies to engage in mineral exploration and investment in the country and internationally.
XINHUA