Botswana Targets New Mining Investment Beyond Diamonds

Botswana is seeking to reduce its dependence on diamonds by attracting investment into copper, silver and critical minerals while requiring mining companies to create more value within the country. The government plans to increase non-diamond mineral exploration spending to 150 million pula by 2029 as it looks to develop a broader mining base. At the same time, it is revising the mining framework to increase local participation in mining and strengthen requirements around processing, procurement and environmental rehabilitation. The aim is to keep more mining-related value in Botswana through local processing, procurement and participation in the industry.

Copper expansion gives diversification strategy a test

The expansion of the Khoemacau copper mine is central to Botswana’s plans. MMG, a subsidiary of China Minmetals, approved a 13 billion pula expansion in December 2025, equivalent to about $900 million. The project is expected to increase annual copper production from about 60,000 metric tons to 130,000 metric tons by the second quarter of 2028. The expansion includes a new processing plant and three additional mining areas. Production is also expected to include more than 4 million ounces of silver.

Construction could support up to 5,500 jobs at its peak, while the expanded operation is expected to create more than 4,000 permanent positions. The investment is also expected to extend the mine’s operating life beyond 20 years.

MMG expects the larger operation to benefit from economies of scale. Average life-of-mine cash costs are expected to fall below $1.60 per pound, compared with $2.05 per pound in the first half of 2025. The company has also indicated that production could eventually increase to about 200,000 metric tons a year. At full production, the mine could generate around $1.4 billion in annual value, giving the project a significant role in Botswana’s export and economic diversification plans.

Government targets more value from mining

The government is now working on regulations that would require greater local participation across the mining value chain. Proposed measures include minimum beneficiation requirements, stronger citizen participation in mine ownership, preferential procurement and tighter environmental rehabilitation obligations. The government also wants to tighten rules around mining licence renewals to discourage companies from holding exploration rights without progressing projects.

The approach reflects a common policy challenge for mineral-producing countries: increasing domestic economic participation without making projects less competitive for international investors. Beneficiation requirements can create opportunities for local processing and manufacturing, but they also depend on whether the country has sufficient power, infrastructure, technical skills, financing and industrial capacity to support those activities.

Copper could broaden Botswana’s mining base

For Botswana, copper provides an opportunity to build a mining industry with stronger links to engineering, processing, logistics and industrial services. The country already has established mining expertise through its diamond industry, but much of the value generated by diamonds has historically remained concentrated around extraction and trading rather than extensive domestic manufacturing.

Copper offers a different opportunity because its use in power networks, renewable energy infrastructure, electric vehicles and other electrical equipment is driving long-term demand. That does not automatically translate into local industrial development. Botswana will need to build the supplier and technical base required to support mining companies if it wants more of the industry’s spending to remain in the domestic economy.

This is where the government’s local-content policies will face their main test. Rules that require more local procurement and processing could help develop domestic businesses, but requirements that move faster than local capacity could increase costs or delay projects.

Khoemacau sets the benchmark

The Khoemacau expansion gives Botswana a sizeable project against which to measure its diversification strategy. The immediate benefit will come from higher copper and silver production, employment and government revenues. The longer-term opportunity lies in the businesses that can develop around the mine, including engineering contractors, equipment suppliers, maintenance companies, transport operators, processing specialists and other technical services.