Diamond mining in Botswana
Botswana is the largest diamond producing country in the world by value, supplying approximately 21% of global rough diamond production. It is the location of the world’s two largest diamond mines; Jwaneng and Orapa, both operated by Debswana as well as four shareholder owned diamond mines – Gem Diamonds, Firestone, Lucara and Kimberley Diamonds.
Diamonds were first discovered in Botswana in 1959 and the first kimberlites were discovered in 1967. Since then, over 275 kimberlites have been discovered in the country.
With a long and well-established Mining Code, Botswana is rated by the Fraser Institute as the best country in Africa for mining. The country also has the distinction of having the highest sovereign credit rating in Africa.
The Fiscal Regime for Mining in Summary
Mineral Royalty Rates: 10% for precious stones; calculated from the gross market value of sales at the “Mine gate;”
Income Tax Rate: diamond tax regime is negotiated;
Capital allowances: 100% depreciation of capital expenditures;
Allowable losses: Unlimited carry forward of tax losses;
Dividend Withholding Tax: 15% on distribution to residents and non-resident shareholders;
Import Duty: Mining equipment and spares are zero-rated, otherwise duties are payable;
Value Added Tax: 12% applies to all but zero-rated items, which includes exports of minerals;
Taxation for Downstream procession (cutting, polishing): 15 % tax rate.
For more information on Botswana, click here.
Last up dated: 28 June 2014