Mining in Botswana: a briefing for South African contractors

Botswana mined an estimated 13 million carats of gem-quality diamonds in 2025, by USGS figures, most of them from Debswana’s Jwaneng and Orapa mines. Copper is the growth area, with the Khoemacau expansion expected to employ up to 5,500 people at peak construction. A South African contractor can work there. Under the amended Mines and Minerals Act, which UNCTAD records as in force from 1 October 2025, mines must prefer service companies with citizen shareholders or registered in Botswana. They must report on it to the Minister every three months.

Figures and rules checked 25 Sep 2026.

Mining in Botswana: key figures

Sources: USGS MCS 2026 Gemstones, USGS MCS 2026 Diamond (industrial), De Beers Q2 2026 production report, 2026 Budget Speech, USGS 2019 Minerals Yearbook, Botswana, all read 25 Sep 2026. The GDP, employment and export shares are the latest in the USGS country chapter and are several years old.

Where mining happens in Botswana

Diamonds dominate. USGS lists Debswana’s Damtshaa, Letlhakane, Orapa and Jwaneng mines. It adds that “Mining could continue at Jwaneng until 2043, and at Orapa, until 2064”. The Government holds an equity position in “the majority of the diamond mines” (USGS 2019 Minerals Yearbook, Botswana). Lucara’s Karowe mine has a feasibility study behind an underground mine, and Debswana’s Morupule colliery feeds the Morupule B power station.

De Beers reported 5.5 million carats from Botswana in the second quarter of 2026, up from 2.65 million a year earlier. The difference comes from extended maintenance at Orapa in 2025 and higher-grade ore at Jwaneng. De Beers expects planned plant maintenance at Orapa and Jwaneng to cut its production run-rate in the second half of 2026 (De Beers, 23 Jul 2026).

Copper sits in the North-West District, where the Khoemacau copper-silver project lies next to the old Boseto mine (USGS). The 2026 Budget Speech says the Khoemacau expansion has been “launched, supported by secured financing”. It also says Menzi Battery Metals is “nearing completion of the definitive feasibility study” for battery-grade manganese (2026 Budget Speech).

For a South African load and haul or drill and blast contractor, that means open-pit diamond stripping at a few large mines. The copper side adds construction and development work. Quarrying is now kept for citizens (see below).

Licences and the regulator

Mining is governed by the Mines and Minerals Act of 1999 (USGS), amended by the Mines and Minerals (Amendment) Act, No. 14 of 2024. Parliament passed the amendment on 25 July 2024 and it received assent on 8 October 2024. The Act’s own cover gives its commencement as “ON NOTICE”, and we did not read the commencement notice. UNCTAD’s investment policy monitor, citing the Official Gazette, records that it came into force on 1 October 2025 (UNCTAD).

Mining rights are held by the mine owner. The amendment gives the Minister power to revoke a prospecting, mining or other licence “due to non-compliance with the Act or in the national interest”. A revoked licence ends the contract work that depends on it.

Citizen preference rules for contractors

These come from the text of Act 14 of 2024, read 25 Sep 2026.

Two points matter for a foreign contractor. The 1999 wording gave preference to service agencies “located in Botswana and owned by Botswana citizens or bodies corporate established under the Companies Act”. The new wording names companies “which are registered in Botswana” as an alternative to citizen shareholding. A Botswana-registered company is therefore inside the preference as written. Second, the industrial minerals rules close quarry ownership to foreign companies. Contract work at a citizen-owned quarry is a different question: check it with an adviser.

Botswana work permits for contractors

The Government of Botswana describes the work permit as permission “to work in Botswana for a reward or to invest in Botswana for profit”. Applications go to the nearest Labour Office. The listed documents include:

• a “Copy of job advert not older than six months old”
• the contract of employment and the letter of offer
• certified qualifications, with foreign-language certificates translated and “confirmed by Botswana Qualification Authority”
• “Clearance from relevant professional regulatory bodies”, with extra clearances for roles such as drivers and engineers.

Processing is given as “Fourteen (14) working days”. Renewals go in six months before the permit expires.

For urgent work there is an emergency work permit, for “immediate employment”. The page sets out a three-month version with much the same documents. A version of up to seven days needs a supporting letter and a passport copy.

Botswana mining tax basics

These are facts from the Botswana Unified Revenue Service (BURS) and the Act, read 25 Sep 2026.

• Company income tax is 22% for resident companies and 30% for non-resident companies on BURS’s undated Companies page, read 25 Sep 2026 (BURS, Companies). The Income Tax Bill, 2025 (Bill No. 36 of 2025, gazetted 15 Dec 2025) would set 24.5% for “any other company” (Government Gazette, via BURS). KPMG reported on 1 Jun 2026 that the Bill was still “pending parliamentary approval and presidential assent”. We could not confirm its status on 25 Sep 2026, so confirm the rate with BURS before pricing.
• Anyone paying under “a contract relating to construction operations” must withhold 3% of the gross amount, excluding VAT. It is not a final tax. Contracts only for design, engineering or surveying are excluded. So are contracts under P2,000,000 done by companies in PPADB categories OC, A and B (BURS, Other Withholding Taxes).
• Management and consultancy fees paid to a non-resident carry a final 15% withholding tax.
• Commercial royalties paid to a non-resident carry a final 15% withholding tax. The definition includes payments for “the use of, or the right to use, industrial, commercial or scientific equipment”. Check how a plant hire contract with a non-resident owner is treated. Tax treaties can vary these rates.
• Mineral royalty under section 66 of the 1999 Act is 10% of gross market value for precious stones, 5% for precious metals and 3% for other minerals.
• VAT: the BURS VAT page, undated and read 25 Sep 2026, still gives a standard rate of 12%. PwC’s tax summary, last reviewed 9 Jan 2026, gives 14% (PwC, Botswana other taxes). The 2026 Budget Speech also proposed “reducing the zero-rated list”. We could not confirm the rate on a current BURS page, so confirm it with BURS before pricing.

Logistics from South Africa

SARS’s customs border posts page lists four posts between South Africa and Botswana: Grobler’s Bridge in Limpopo, and Kopfontein, Skilpadshek and Ramatlabama in North West (SARS, Border Posts). Kopfontein and Skilpadshek are listed under Zeerust and Ramatlabama under Mmabatho. The copper projects in the North-West District are the long haul from any of them.

The 2026 Budget Speech names two rail projects that would change the routes. One is the Mmamabula to Lephalale railway line into South Africa. The other is the Mosetse to Kazungula to Livingstone line, part of SADC’s North-South Corridor plan.

Risks and what to watch

Common questions

What does Botswana mine?

Diamonds above all. USGS estimates 13 million carats of gem-quality diamonds and 5 million carats of industrial diamonds in 2025. Debswana’s Jwaneng and Orapa mines are the largest operations. Botswana also mines copper, coal and soda ash, and the government is backing a copper expansion at Khoemacau and a battery-grade manganese project.

Can a South African contractor work on a Botswana mine?

Yes. The amended Mines and Minerals Act, in force from 1 October 2025 according to UNCTAD, requires mines to prefer service companies in which citizens hold shares or which are registered in Botswana. Mines must report on this every three months. Mining licences and permits for industrial minerals such as quarry stone are reserved for citizens and citizen-owned companies.

What permit does a South African need to work on a Botswana mine?

A work permit, applied for at the nearest Labour Office with a job advert not older than six months, the employment contract, certified qualifications and professional clearances. Processing is given as 14 working days. For urgent short work there is an emergency work permit of up to three months, or up to seven days.

Sources

1. USGS, Mineral Commodity Summaries 2026: Gemstones (Feb 2026), read 25 Sep 2026
2. USGS, Mineral Commodity Summaries 2026: Diamond (industrial) (Feb 2026), read 25 Sep 2026
3. De Beers Group, Production Report for the Second Quarter of 2026 (23 Jul 2026), read 25 Sep 2026
4. Republic of Botswana, 2026 Budget Speech (9 Feb 2026), read 25 Sep 2026
5. Mines and Minerals (Amendment) Act, 2024 (No. 14 of 2024), read 25 Sep 2026
6. UNCTAD Investment Policy Monitor, Botswana 24 per cent local ownership rule, read 25 Sep 2026
7. Mines and Minerals Act, 1999, read 25 Sep 2026
8. BURS, Companies, read 25 Sep 2026
9. BURS, Other Withholding Taxes, read 25 Sep 2026
10. Government of Botswana, Work Permit Application, read 25 Sep 2026
11. Government of Botswana, Emergency Work Permit, read 25 Sep 2026
12. USGS, 2019 Minerals Yearbook: Botswana (Nov 2023), read 25 Sep 2026
13. SARS, Border Posts, read 25 Sep 2026
14. BURS, Value Added Tax, read 25 Sep 2026
15. Republic of Botswana, Income Tax Bill, 2025 (Bill No. 36 of 2025) (Government Gazette, 15 Dec 2025), read 25 Sep 2026
16. KPMG, Botswana: Legislative package of tax and customs reforms (1 Jun 2026), read 25 Sep 2026
17. PwC Worldwide Tax Summaries, Botswana: other taxes (last reviewed 9 Jan 2026), read 25 Sep 2026