Page 52 - Apmor 2018

mining
mining transparency

make its large mining contracts public so as to Botswana discovered diamonds and that was
Years after buying KCM, the improve transparency. all it needed to discover.
owner of Vedanta Anil Agarwal
was quoted as saying in a widely
circulated video that “We took over Botswana’s Minerals Minister While other African countries were
the company. It’s been 9 years, and Sadique Kebonang said in response fighting wars after discovering oil,
since then, every year it is giving that “no country signs transparent or in the case of Congo and Nigeria
us a minimum of $500 million plus agreements. Commercial fighting secession, Botswana was
$1 billion every year; it has been rapidly developing. When Botswana
continuously giving back. It’s a agreements are confidential by gained independence its diamond
matter of taking a chance.” nature because of the sensitive mines were under De Beers.
of information they have... even
the World Bank, when they give
Zambia’s copper production is in the hands Just like other foreign mining companises such
of four big companies, Barrick Lumwana, us loans some details of the loan as Vedanta in Zambia, which exploited the
First Quantum Minerals (FQM) Kansanshi, agreement are kept secret.” countries they were extracting from, De Beers
Mopani and KCM (Konkola Copper Mines). was no different. Botswana renegotiated the
Barrick Lumwana is wholly owned by the contract they had with De Beers. According to
Canadian company Barrick, which is the Venatius Oforka’s book The Bleeding Continent:
world’s largest gold- How Africa Became
mining company. Impoverished and
The Zambian Why It Remains Poor
g o v ernmen t he said, “Botswana’s
is a minority moral rectitude in
shareholder in all relation to governance
the companies. is clearly manifested
Ov er wh el mi n g in the struggle for
evidence was renegotiation of the
presented about diamond contract.
the operations It was essentially
of Vedanta by pursued for the
Foil Vedanta. The interests of the
organisation, Foil country at large and
Vedanta exposed not for the benefit
actions such of any particular
as tax evasion, individual person or
under-declaration group of persons or
of profits, for political cronyism.”
e n v ir onme n t al The mining industries
devastation and in many African
abuses of worker’s countries benefit a
rights. The few individuals and
copper industry is the foreign companies
responsible for 60% that come to extract
of Zambia’s foreign the mineral resources.
earnings. African governments
Unlike Zambia and have to renegotiate
many other African countries, Botswana is one Most of Botswana’s foreign exchange comes the mining contracts signed in the interest of
country that got things right. Botswana is the from its mining industry. In 1966, Botswana their countries and communities to convert
world’s leading producer of diamond and it was the third poorest country in the world. The mineral wealth into tangible social and
is a great example of how to convert mineral country had just gained independence from economic growth. (Courtesy of thisisafrica.me)
wealth into social and economic growth. World the 80 year occupation of Britain and was faced
Bank early this year called on Botswana to with famine. The landlocked country only had
12km of paved road and 22 graduates. In 1967,

52 | AFRICAN POWER Mining & Oil Review Vol 21, Issue 20, 2017