Australia’s mining fraternity has been encouraged to extend its involvement in one of Africa’s most successful mineral resources states under the safety net of a proven fiscal and monetary regime. Addressing the first day in Perth of the record breaking Paydirt 2008 Africa Downunder Resources Conference, Botswana’s Minister for Minerals, Energy and Water Resources, the Hon. Ponatshego Kedikilwe, said the country’s forward growth strategy now had an emphasis on international partnerships, with Australia a favoured participant.

“There has nothing gone seriously amiss with our regimes applying to mining in Botswana since we commenced a liberalisation of fiscal and monetary policy,” Kedikilwe said. “It is critical that Botswana sends a clear global message of investment security for our mining future. This includes prompt and adequate compensation if for some reason, a particular piece of mineral ground is needed for wider community use.

“We have created an investment climate which highly favours Australian mining investment in Botswana’s future. This now includes no exchange controls, no restrictions on the repatriation of profits, low level of taxation, immediate write-down of 100% capex, unlimited carry forward of tax losses, zero rating on mining equipment and spare imports and low tax rates for smelters, refineries and downstream processing. This mining advantage is reflected in the fact Australia this year leads the pack in the distribution of prospecting licences – driving not surprisingly, a more than doubling in the past three years in exploration expenditure to now more than $250 million.”

“In particular, we assure Australia’s resources investors that we are addressing the critical issues of water and power infrastructure that has plagued Africa’s mining sector in the past two years. Our message clearly is – we want Australian participation in what we see as new opportunities in Botswana in uranium, coal seam methane gas, and some 200,000 Mt of known coal resources.”