Wednesday, 31 May 2017

De Beers taking Minerals Minister to court over bewildering diamond export obfuscation

De Beers taking Minerals Minister to court over bewildering diamond export obfuscation

Photo by Duane Daws
De Beers Consolidated Mines taking Minerals Minister Mosebenzi Zwane to court.
31ST MAY 2017

JOHANNESBURG ( – The South African government is refusing to grant an exemption to diamond miningcompany De Beers Consolidated Mines (DBCM) relating to the exportation of diamonds to neighbouring Botswana for aggregation, MiningWeekly Online can today report.
Aggregation is the process of mixing like-for-like rough diamonds from mines in South Africa, Botswana, Namibia and Canada.
Up to now, DBSA has received exemption yearly and once the aggregation process is complete, rough diamonds of higher value are re-imported back into South Africa for cutting and polishing, a diamond beneficiation exercise that provides jobs and adds value.
But Minerals Minister Mosebenzi Zwane has denied De Beers an exemption to enable this, despite the company exceeding all the legislated criteria for its 2017/18 levy exemption application. 
As a consequence, De Beers RSA has approached the Pretoria High Court to set aside the Minister’s decision.
At last week’s annual general meeting of the Chamber of Mines, CEO Roger Baxter made the point that resorting to the courts by the mining industry should be seen as a legitimate process to arrive at outcomes that are in the national interest.
“One thing that you’ll see from the industry side in the last two years is that we’re not shy to engage government in court processes, because courts are there to protect our rights and to enforce our rights,” said  Baxter, adding that the same route was also open to government.
While De Beers RSA must sell at least R3-billion worth of rough diamonds, 40% of them to South African diamond cutters and polishers, to qualify for the exemption in terms of Section 74 of the Diamond Export Levy Act, it actually more than trebled the required total sales level to R9.47-billion in the 12 months in question, with 43.3% going to local cutters and polishers – but it has had its levy exemption application turned down in spite of doing far more than the law demands.
De Beers’ South African sightholders employ more than 300 people in their cutting and polishing factories, representing 80% of the total local employment numbers, but sustaining employment at this level is dependent on local companies being able to access higher value rough diamonds from aggregated international production, which facilitates the running of viable businesses.
Section 74 was developed by the South African government to incentivise large diamond producers to support diamond manufacturing in South Africa, which it has succeeded in doing.
But Mining Weekly Online now understands that the enforcement of the 5% export levy, as a result of not being granted the Section 74 exemption, will have a further and dire consequence on DBCM's cash flow challenges.
De Beers – an Anglo American company – is currently investing $2-billion in the development of the Venetia underground diamond mine in Limpopo; through its Shining Light Jewellery Competition it brings new entrants into the South African jewellery industry; and through the establishment of the Kimberley International Diamond and Jewellery Academy it develops cutting and polishing skills.
In addition, De Beers last year launched a programme to mentor five small diamond cutting and polishing businesses, three of which are female-owned, in support of South Africa’s broad-based black economic empowerment objectives.
The company also provides these small cutters and polishers with aggregated rough diamond supply. 
News of the bewildering Ministerial obfuscation arises at a time of increased financial stress in diamond mining circles. As reported by Mining Weekly Online, three Northern Cape subsidiaries of the Vancouver- and Johannesburg-listed Rockwell Diamonds are in business rescue after facing a liquidation application; Johannesburg-listed Trans Hex has put its Northern Cape Bloeddrif diamond operation on care and maintenance to alleviate financial strain; and Lace diamond mine in the Free State, held on the London-Aim by DiamondCorp, is in business rescue.
Now cash flow position of DBCM is being reduced by an export levy exemption being unexpectedly declined, necessitating work having to be done on the studying of options to mitigate the impact of the Minister's decision on sightholders, the local diamond beneficiation industry and DBCM itself. 
De Beers taking Minerals Minister to court over bewildering diamond export obfuscation

Unusual Activity Spotted in BOTSWANA DIAMONDS (BOD.L)

Unusual Activity Spotted in BOTSWANA DIAMONDS (BOD.L)

Shares of BOTSWANA DIAMONDS (BOD.L) have seen the needle move -3.13% or -0.05 in the most recent session. The LSE listed company saw a recent bid of $1.55 on 650000 volume. 
Deep diving into the technical levels for BOTSWANA DIAMONDS (BOD.L), we note that the equity currently has a 14-day Commodity Channel Index (CCI) of 14.12. Active investors may choose to use this technical indicator as a stock evaluation tool. Used as a coincident indicator, the CCI reading above +100 would reflect strong price action which may signal an uptrend. On the flip side, a reading below -100 may signal a downtrend reflecting weak price action. Using the CCI as a leading indicator, technical analysts may use a +100 reading as an overbought signal and a -100 reading as an oversold indicator, suggesting a trend reversal.
BOTSWANA DIAMONDS’s Williams Percent Range or 14 day Williams %R currently sits at -51.72. The Williams %R oscillates in a range from 0 to -100. A reading between 0 and -20 would point to an overbought situation. A reading from -80 to -100 would signal an oversold situation. The Williams %R was developed by Larry Williams. This is a momentum indicator that is the inverse of the Fast Stochastic Oscillator.
Currently, the 14-day ADX for BOTSWANA DIAMONDS (BOD.L) is sitting at 17.45. Generally speaking, an ADX value from 0-25 would indicate an absent or weak trend. A value of 25-50 would support a strong trend. A value of 50-75 would identify a very strong trend, and a value of 75-100 would lead to an extremely strong trend. ADX is used to gauge trend strength but not trend direction. Traders often add the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) to identify the direction of a trend.
The RSI, or Relative Strength Index, is a widely used technical momentum indicator that compares price movement over time. The RSI was created by J. Welles Wilder who was striving to measure whether or not a stock was overbought or oversold. The RSI may be useful for spotting abnormal price activity and volatility. The RSI oscillates on a scale from 0 to 100. The normal reading of a stock will fall in the range of 30 to 70. A reading over 70 would indicate that the stock is overbought, and possibly overvalued. A reading under 30 may indicate that the stock is oversold, and possibly undervalued. After a recent check, the 14-day RSIfor BOTSWANA DIAMONDS (BOD.L) is currently at 50.74, the 7-day stands at 45.27, and the 3-day is sitting at 22.64.
Investors who have stayed on the sidelines may be considering if the markets will continue to rally higher. Staying vigilant and watching for signs of the next bear may prove to be a crucial element for helping to guide certain portfolio moves. Keeping an eye on historical corrections as well as sentiment and technicals, may help provide the proper insight needed. Investors may be mindful of any meaningful pullback or correction, and they may have a certain percentage in mind for when things seem to be getting out of hand. Cautious optimism may prove to be a profit saver when the bearish winds start to blow. Investors may need to figure out a plan for when to take some profit off the table. Conducting thorough fundamental research on stocks even after they have broken out may help the investor understand the reason behind the move, and whether it is likely to continue or if it is just a temporary spike. 
Unusual Activity Spotted in BOTSWANA DIAMONDS (BOD.L) | Geneva Journal

Monday, 29 May 2017

Botswana's Wilderness Safaris to bid for Air Botswana | Reuters

GABORONE: 29th May 2017 (Reuters - Editors James Macharia and Jane Merriman)

Botswana's largest tourism company, Wilderness Safaris , plans to make a bid for Air Botswana, the country's loss-making national airline which the government wants to privatise.

Botswana put the airline up for sale in February, part of plans to privatise loss-making state-owned companies. The transport department said at the time it would consider full bids for Air Botswana, as well as joint ventures, ownership, franchising and concessions.

In March, Transport Minister Kitso Mokaila said at least 17 companies had expressed interest in Air Botswana, but he did not name them.

Wilderness Safaris said it planned to make a bid when it published its full-year results last week.

The company, which is also listed in Johannesburg, operates 50 luxury resorts across eight African countries and Wilderness Air operates 35 small aircrafts in Botswana, Zimbabwe, Zambia and Namibia mainly catering to tourists.

Botswana, whose main source of wealth is diamonds, has more than 30 state-owned enterprises, most of them loss making, in industries ranging from tourism and power to housing and finance.

Air Botswana operates four domestic routes and also provides cargo and air passenger services to Cape Town and Johannesburg from Gaborone, Francistown and the tourism hubs of Maun and Kasane.

The airline's losses, blamed on a large workforce and an aging fleet, prompted a turnaround plan that includes cutting costs and cancelling unprofitable routes.

Friday, 18 November 2016

Metal Tiger Plc ("Metal Tiger" or the "Company") Botswana Update

Metal Tiger plc (LON:MTR) the London Stock Exchange AIM listed investor in strategic natural resource opportunities is pleased to note MOD Resources (ASX:MOD) announcement today with regard to the Company’s Joint Venture (“JV”) project with MOD Resources in the Kalahari Copper Belt in Botswana (70% MOD Resources / 30% Metal Tiger).

Metal Tiger notes that MOD has announced that it expects the results for Metal Capital’s scoping study for a potential open pit mining operation at T3 to be completed and announced during November, one month ahead of when previously anticipated. Metal Tiger notes that the scoping study has been conducted to evaluate the potential for a 9-10 year mine life with an initial 2Mtpa processing plant on site.

A copy of MOD’s announcement can be found here.

Alex Borrelli Chief Executive Officer of Metal Tiger commented:

“I am pleased to note the positive development that the scoping study will be completed nearly 1 month ahead of schedule. I look forward to meeting with our JV partners during their visit to London at the end of November and I am very encouraged by the recent gains in the price of copper and the potential to positively impact demand for copper assets”. SOURCE

Thursday, 20 October 2016

Hopes shattered as TNMC caves in

Reacting to the mine closure, the Francistown mayor, Sylvia Muzila said the closure is a wake up call for all to join hands and come up with new strategies that can save the city’s economy.

As TNMC is located on the outskirts of the city, its +/-700 employees resided in Francistown and commuted to their workplace daily.

Muzila said the mines provided a high-income bracket, which elevated their buying power and boosted the economy of the city. She stated that the closure is already impacting on the city’s economy negatively as Francistown had a vision of attracting investors through the mines.

“This dream shattered when the mines closed down. This challenges us to diversify and come up with better ways of saving the city’s economy,” Muzila said.

She said the city’s unemployment rate has increased since hundreds of people were laid off.

Muzila said the closure has had a huge negative impact on businesses and individuals who took advantage of the mines.

“The closure will impact negatively on people’s assets as they might put them for sale or rental hence forcing property markets to drop. This will also affect us as the council because we will be forced to reduce our rates,” Muzila said.

She added: “When the property market drops, it will surely affect the city’s economy”.

She said through their Francistown Investment Forum , the local authority is busy fast-tracking its investment drive to attract quality investors into the city.

“We are calling for investors who are into manufacturing to set up factories here. This sector is labour intensive and as such it will create more openings and more possibilities for locals,” Muzila said.

Botswana Diamonds Starts Drilling at Orapa Pipe

Botswana Diamonds said drilling commenced at one of its kimberlite pipes in the Orapa region of Botswana.

The drilling started at pipe AK 22, within license PL 260, which is part of a 50:50 joint venture between the company and Russian miner ALROSA.

Botswana Diamonds will make a further announcement “as soon as practicable” about the start of drilling at license PL 135 in the Gope region, which is also being explored in partnership with ALROSA

Kalahari Desert drilling starts, says Botswana Diamonds | 20 October 2016 | Stock Market Wire

"The Gope drill campaign is breaking new ground in one of the most remote deserts on Earth. There are no people, even water must be transported long distances and the sand is deep. Temperatures can differ by 50 Celsius between day and night.

"No mining companies have ventured here before to undertake drilling programmes. And yet the preliminary geochemical and geophysical indicators are strongly positive. We are at the cutting edge of diamond exploration and are cautiously optimistic of finding kimberlites."

Friday, 23 September 2016

Metal Tiger plc UK Regulatory Announcement: Botswana T3 Resource Generation Update

Botswana T3 Resource Generation Update

Metal Tiger Plc

("Metal Tiger" or the "Company")

Botswana T3 Resource Generation Update

Metal Tiger plc (LON:MTR) the London Stock Exchange AIM listed investor in strategic natural resource opportunities is pleased to advise that MOD Resources (ASX:MOD) the Company’s Joint Venture partner in Botswana has entered into a trading halt on the ASX until 26 September 2016 pending the release of the maiden JORC compliant resource for the T3 target in the Kalahari Copper Belt.
The trading halt temporarily suspends trading in the shares of MOD resources whilst the company processes price sensitive news and prepares relevant market announcements, in this case in respect of the T3 JORC compliant maiden resource. Following release of the price sensitive news, MOD resources will resume trading on the ASX.
The shares of Metal Tiger will however continue to trade on the AIM market in London and the Board of the Company look forward to releasing details of the T3 maiden resource statement very shortly.
For further information on the Company, visit:
Paul Johnson (Chief Executive Officer)  Tel: +44 (0)7766 465 617
Terry Grammer (Non- Executive Chairman)Tel: +44 (0)207 099 0738
Sean Wyndham-Quin
Neil Baldwin
Nick Emerson
Andy Thacker
Spark Advisory Partners Limited
(Nominated Adviser)
SI Capital
(Sole Broker)
Tel: +44 (0) 2033 683 555

Tel: +44 (0) 1483 413 500
Notes to Editors:
Metal Tiger plc is listed on the London Stock Exchange AIM Market (“AIM”) with the trading code MTR and invests in high potential mineral projects with a precious and strategic metals focus.
The Company’s target is to deliver a very high return for shareholders by investing in significantly undervalued and/or high potential opportunities in the mineral exploration and development sector timed to coincide, where possible, with a cyclical recovery in the exploration and mining markets. The Company’s key strategic objective is to ensure the distribution to shareholders of major returns achieved from disposals.
Metal Tiger’s Metal Projects Division is focused on the development of its key project interests in Botswana, Spain and Thailand. In Botswana Metal Tiger has a growing interest in the large and highly prospective Kalahari copper/silver belt. In Spain Metal Tiger the Company has tungsten and gold interests in the highly mineralised Extremadura region. In Thailand Metal Tiger has expanding interests over licences, applications and critical historical data covering antimony, copper, gold, silver, lead and zinc opportunities.
The Company has access to a diverse pipeline of new opportunities focused on the natural resource sector including physical resource projects, new natural resource centred technologies and resource sector related fintech opportunities. Pipeline projects deemed commercially viable may be undertaken by Metal Tiger or by an ISDX or AIM partner with whom the Company is engaged.
Metal Tiger also has an Asset Trading Division that holds various financial instruments for trading purposes including equities, warrants and royalty income. The aim of the division is to generate profits to reinvest into the Company’s project based activities.
Short Name: Metal Tiger plc
Category Code: MSCH
Sequence Number: 549951
Time of Receipt (offset from UTC): 20160922T093210+0100


Metal Tiger plc

Mount Burgess Mining NL to target additional zinc resources in Botswana - Proactiveinvestors (AU)

Mount Burgess Mining NL to target additional zinc resources in Botswana

Mount Burgess Mining NL (ASX:MTB) has commissioned an exploration drilling program across the Kihabe Zinc Project in Botswana near the Namibian Border.

The 1200 metres drilling program will focus on additional zinc anomalies within the vicinity of the Kihabe and Nxuu zinc/lead deposits.

The Kihabe and Nxuu deposits have a combined resource of 25 million tonnes grading 3% zinc equivalent.

The new program will primarily focus on Target 52, a geochemical soil anomaly identified 2 kilometres southeast of the Nxuu deposit.

Significantly, the geochemical results suggest a possible mineralised strike length of 5+ kilometres, which is more than double that of the combined strike lengths of the Kihabe and Nxuu deposits.

Mount Burgess’ Kihabe Zinc Project has mineralisation occurring from 5 metres to 175 metres below the surface and, as such, could potentially be mined by means of open pit mining methods.

Metallurgical test work has generated zinc recoveries of greater than 90% and zinc and lead concentrates of good marketable grade.

Importantly, zinc is the best performing base metal so far this year and measured from its six-year low struck mid-January, zinc price has increased 58% to $2,336 a tonne earlier this month.

The new drilling program is anticipated to commence in mid-October 2016.

Mount Burgess’ share price has doubled since the beginning of 2016, last trading at $0.01

Tuesday, 2 September 2014

Precious Metals Mining in Botswana to 2020 - a Focus on the Diamond Industry

The country’s rough diamond production is expected to reach 25.3 million carats by 2014 and 32.2 million carats in 2020. In 2009, the county’s diamond industry declined sharply due to the global economic crisis, emphasizing the country’s reliance on export demand, leading to a fall in rough diamond production. Botswana’s rough diamonds are mostly exported to the US, Europe and Japan. These three destinations made up 84.7% of the country’s total exports in 2012.

Monday, 18 August 2014

BTC shares bill gets parley thumbs up

“This therefore calls for the amendment of BTC (Transition) Act 2008 to indicate that the Employee Share Ownership Plan to be established will be exclusively for citizens,” he explained. The details of the Employee Share Ownership Plan are currently being finalised.

In a related development, legislator, Tawana Moremi of the Ngamiland constituency objected saying he was afraid the amendment will tamper with people’s rights, adding that shareholders have a right to sell “to whoever they want.”

Wednesday, 13 August 2014

Turnstar Holdings Worried About Botswana’s Excess Supply Of Office Space

“There is already evidence of declining base rentals and hardening investment yields due to an oversupply of office space and shopping centres around the city,” the statement added.
Turnstar Holdings which also has business interest in Tanzania said its core business is to invest in real estate property and generate rental income.
The company also said it will also embark imminent expansion projects especially Game City in Botswana and Mlimani City properties in Tanzania.
“Game City will be expanded to include additional retail space including a fashion avenue, restaurant area including a food court, entertainment area and a parkade. Mlimani City will be expanded to include additional retail and commercial space including basement parking, additions to the Conference Centre and a Botanical Garden,” said the company’s report.

Tuesday, 29 July 2014

Letshego Bank Namibia Limited Gets Banking Licences

"The provisional licenses for authorisation are effectively valid for a period of six months from the effective date of 15 July 2014. After this period, the bank may issue a certificate of authorisation to these entities to conduct banking business, provided that they satisfactorily fulfilled the readiness requirements before commencing with banking operations," central bank spokesman, Ndangi Katoma said.

Friday, 25 July 2014

Tsodilo Resources: Exposure To Botswana's Undiscovered Mineral Riches - Tsodilo Resources Limited (OTCMKTS:TSDRF) | Seeking Alpha

Tsodilo Resources Limited (TSDRF), Includes: FQVLF


  • JV Partnership with First Quantum Minerals for Copper Exploration.
  • Xaudum Iron Project with Potential for 5-7 Billion Tonnes.
  • Botswana-based Prospect Generator with Company-Owned Drill Rigs.
(Editor's Note: Investor's should be mindful of the risks of transacting in illiquid securities such as TSDRF. Tsodilo's Canadian listing, TSD.V, offers an additional alternative, but is also highly illiquid.)

Featured Investment: Tsodilo Resources Ltd (CVE:TSD

Tsodilo Resources (OTC:TSDRF) an exploration/development company with operations in Botswana. The company has uniquely positioned itself as (1) a Botswana-based prospect generator, (2) an iron ore development play, and (3) a promising "carried interest" copper play. With a current market capitalization of ~ $40M, the company offers excellent speculative upside. Additionally, TSD's multi-pronged approach and strong shareholder base provides a decent Margin of Safety at this valuation.
The Partnership has held TSD since inception with an average cost of $0.85 per share. As of July 15, Tsodilo is trading at $1.30. TSD is the second strongest performer of the 7 holdings (out of 25 current holdings) that the Partnership has stuck with since inception in September 2011. Additionally, due to this outperformance, TSD is one of the Partnership's top 3 largest holdings.
In this Featured Investment piece, I start by providing the investment theses for copper and iron ore (the two metals of most interest to Tsodilo shareholders). It is important to keep in mind that Tsodilo has not yet found a copper deposit and is only just starting to define its Xaudum Iron Ore Formation. If the company doesn't ultimately find economic copper or iron ore, then the prospects for these two commodities are irrelevant. Conversely, if the company does end up gaining exposure to a world-class copper or iron ore deposit, then shareholders will be rewarded regardless of the copper/iron ore price (baring a monumental collapse). Regardless, I thought it would be good to share my investment theses on both of these metals for some broader perspective on the Tsodilo Resources story.
I then profile the African country of Botswana - the sole jurisdiction in which TSD operates (though the company does have their corporate office in Toronto). The stability of Botswana both geopolitically and as a viable mining destination is essential to the success of this investment.
I conclude with my investment thesis for Tsodilo, covering the company's background, management team, current operations, and ultimate upside as an investment. I then comment on Tsodilo's Margin of Safety as, with any investment, understanding the downside is just as important as knowing what there is to gain.

Pangolin Diamonds Recovers Macro-Diamond From Malatswae

Pangolin Diamonds Corp. (the "Company" or "Pangolin") (TSX VENTURE:PAN) is pleased to announce the recovery of a macro-diamond from a soil sample on its recently acquired Malatswae project prospecting licence PL247/2014. The project is located in north-central Botswana and is 100%-owned by Pangolin.

A regional soil sample, numbered MSC119, weighing approximately 40kg was collected and then processed at Pangolin's DMS plant in Francistown, Botswana. A concentrate was then independently examined in Gaborone by a specialist consultant who subsequently submitted the stone to C.F. Mineral Research Limited in Kelowna, Canada who confirmed the diamond.

The white diamond weighs 0.005484 carats and was retained on a standard Endecotts sieve with the mesh size 0.600mm. The diamond is therefore classified as a macro-diamond - greater than 0.500mm in at least one direction.

Malatswae Diamond Project

The Malatswae Kimberlite Project covers 1,058km2 and is located 70km southeast of the Orapa Mine. The Project area hosts a number of kimberlite targets. Previous work by Pangolin Diamonds demonstrated that the chemical compositions of garnets recovered in soil samples are distinctly different from the garnets from the Orapa kimberlite field, suggesting that an undiscovered kimberlite may be found within the project area.

Quality Control and Quality Assurances

Quality assurance procedures, security, transport, storage, and processing protocols conform to chain of custody requirements. The diamond results reported here are based on laboratory work completed by C.F. Mineral Research Limited, Kelowna, Canada an independent mineral processing laboratory. Residues are retained and are available for review and audit.

Pangolin exploration programs are carried out under the supervision of Rick G. Bonner, P. Geol., who directs operations in Botswana for Pangolin Diamonds.

More Competition for Banking Sector in Namibia

NEWLY licenced banks, Letshego Bank Namibia and Banco Privado Atlantico Europa are expected to increase competition in the banking sector.
The commercial banking space has long been dominated by FNB Namibia, Nedbank, Standard Bank and Bank Windhoek, the largest commercial banks.
Last week, the Bank of Namibia announced that the Botswana based, Letshego and the Portugal based Banco had been granted provisional licences for six months.
Mythri Sambasivan-George, head of corporate affairs at Letshego says the group plans to become a leading African financial services group.
George said future plans include building deposit taking capabilities, diversifying into and microfinance lending.
"The issue of this provisional licence is a key milestone in its transformational journey and will enable the group to meet its commitment to improve lives and financial inclusion in Namibia. This is the third deposit-taking micro financial licence obtained across the group's ten country footprint in Southern and East Africa," said George.
Letshego was formed in 1998 and has been publicly listed on the Botswana Stock Exchange (BSE) since 2002.
It is a holding company with consumer and micro lending subsidiaries across 10 countries in Southern and East Africa - Botswana, Kenya, Lesotho, Mozambique, Namibia, Rwanda, South Sudan, Swaziland, Tanzania and Uganda.
Letshego is the second largest quoted company on the Botswana Stock Exchange with a market capitalisation in excess of US$550 million.
The group offers loans between US$1 000 and US$40 000. In the year ended 31 January 2014 advances increased by 33% to US$500 million and profit before tax for the same period was recorded at US$ 97 million.
CEO of Banco Privado, Diogo Cunha, declined to comment on future plans.
"At this moment we do not have additional comments. We will certainly contact you to share more information once we are nearer to the date of opening," Cunha said. The shareholders of Banco Privado Atlantico Europa are, Surviving Global, Asset Management, SA (72,3%), Banco Millennium Angola, SA (6,7%) and management (21%).
In April, Reuters reported that another bank with Portuguese and Angolan connections, Banco BIC, backed by the billionaire daughter of the country's president and a Portuguese cork tycoon, was planing to ramp up its branch network at home while also expanding overseas to operate in four continents.
BIC opened an office in Johannesburg in February and applied for a licence to operate in Namibia.
Isabel dos Santos, daughter of Angolan President Jose Eduardo dos Santos and who ranks as one of the continent's richest businesswomen, owns a quarter of BIC Angola. Americo Amorim, one of Portugal's richest men, also owns 25%, Reuters reported.

Bisan bets on Botswana graphite - Proactiveinvestors (AU)

Bisan Limited (ASX:BSN) will trade higher after proposing to invest in a Botswana graphite project, to be owned by a company to be formed called Pencil Hill.

The company intends to acquire a 30% interest Pencil Hill that will hold a 80% interest in the graphite prospecting licence.

Bisan will also have a first right of refusal to subscribe to additional shares and acquire an additional 21% giving Bisan the opportunity to move to 51% of the issued capital.

Plans are also being made to list the new company as an initial public offering.

The consideration for the additional equity will be based on an agreed value most likely to be the IPO price offered to the public or by an independent expert selected by both parties. 

The proposed acquisition will be conditional upon due diligence drilling to be completed by Bisan to verify previous
results, and necessary shareholder and regulatory approvals.

If Bisan does proceed, then the consideration to subscribe to 30% of the issued capital of Pencil Hill is $2 million.

In addition, Bisan currently holds 13.8% of the issued capital of P-Fuel Limited, an unlisted public company. 

Bisan will invest a further $150,000 by subscribing for 3,000,000 new ordinary shares in P-Fuel at $0.05 per share to increase its equity interest to 16.06%.

P-Fuel is developing technology to convert plastics into diesel fuel.

P-Fuel also proposes to undertake an IPO under which Bisan shareholders will be given a priority allocation.

Bisan is also proceeding with a placement to raise $549,463 via issue of 36,630,895 shares at $0.015, with free attaching options exercisable at $0.05 and expiry on 31 December 2018.

Six Southern African Nations, EU Conclude EPA Negotiations

Chief negotiators of the European Union and the Southern African Development Community (SADC) EPA Group (Botswana, Lesotho, Mozambique, Namibia, South Africa and Swaziland) have concluded negotiations for an Economic Partnership Agreement (EPA), it was announced Tuesday.
The agreement takes into account the differences in the level of development between the EU and its African partners. It will open a long-term perspective of duty- and, quota-free access to the EU market for products from Botswana, Lesotho, Mozambique, Namibia and Swaziland.
South Africa will trade with the EU on the basis of improved conditions that build on the existing EU-South Africa Trade, Development and Cooperation Agreement (TDCA).
The EU, in turn, will gain improved access to the SADC EPA market, particularly in the field of agriculture. Also, when SADC EPA countries will be ready to grant more far-reaching concessions to the Europe's main competitors, the EU will be able to claim those same improvements.
The members of the SADC EPA group will continue being able to shield sensitive sectors from European competitors in their domestic market. In addition, they can invoke a number of safeguards incorporated in the agreement.
This will offer them all the necessary flexibility, so that trade can work for and not against development. Following the same logic, the EU has also taken a commitment to refrain from subsidizing its agricultural exports to the region.
The SADC EPA Group consists of 6 out of 15 members of the Southern African Development Community (Botswana, Lesotho, Mozambique, Namibia, Swaziland and South Africa) plus Angola, which may join the agreement in future.
The other eight SADC Member States (Democratic Republic of Congo, Madagascar, Malawi, Mauritius, Seychelles, Tanzania, Zambia and Zimbabwe) are negotiating in other regional EPA configurations. - Global Diamond Production +11% to $14B in 2013 - Global Diamond Production +11% to $14B in 2013

Global diamond production by value rose 11 percent year on year to $14.09 billion in 2013, due mainly to an increase in the average price of rough diamonds, according to annual data published by the Kimberley Process Certification Scheme. By volume, global production increased 2 percent to 130.48 million carats, while the average price of production grew 9 percent to $107.95 per carat. 

Botswana’s production rose 22 percent to $3.63 billion with the volume of its production up 13 percent to 23.19 million carats. The average price of Botswana's rough rose 8 percent to $156.36 per carat.

Friday, 18 April 2014



14 April 2014

Lucara Diamond Corp. reports that its first Exceptional Stone Tender of 2014 generated gross revenues of $50.47 million, or $42,347 per carat. The special tender of diamonds from the Karowe mine in Botswana, completed on April 10, 2014, consisted of 20 single stone lots totaling 1,191 carats, all of which were sold.

The highest value stones sold were a 167.-carat diamond and an 86.8-carat diamond, which sold for $12.7 million ($75,821/ct) and $5.1 million ($58,627/ct), respectively. Of the 20 diamonds on offer, 15 of these sold for more than $1 million, including eight, which sold for more than $2 million, notes the TSX-listed miner.

In addition to the exceptional stone tender, Lucara held two regular diamond tenders in the first quarter of 2014. A total of 107,500 carats were sold for combined revenues of $33.6 million. This, together with the exceptional stone tender, brings the total year-to-date revenues to $84.06 million, or $782 per carat.

"Strong regular tenders combined with the outstanding results from the exceptional stone tender continue to demonstrate the quality of the Karowe Mine and firmly establishes Karowe as one of the world's leading diamond producers by value, further reinforcing the updated resource statement issued in December 2013," says William Lamb, President and CEO.

According to Lamb, the company's next exceptional stone tender will be scheduled for the third quarter of this year. "Karowe Mine has, this year, produced a number of high value diamonds which we are considering for this tender, including a 153.5-carat gem quality stone."

Heavy haul rail projects to benefit African Energy’s Botswana coal

Heavy haul rail projects to benefit African Energy’s Botswana coal - Energy Business Review

Transnet Freight Rail (TFR) said that in 2015, the construction is
set commence on the 105km heavy-haul coal rail link between Botswana and
South Africa, immediately after the completion of feasibility studies.

The construction is a part of a R300 billion infrastructure investment program initiated by TFR.

R40 billion has been allocated by TFR for the construction of this rail
link which will link into existing coal heavy-haul railway lines.

to carry 40-80 million tons per year, the rail link will transport coal
from Botswana into South Africa for state-electricity generator Eskom,
or exported through the seaborne market.

Gama said, "We are
planning to develop the Richards Bay Coal Terminal to support the
expected [volumes] from Botswana and the Waterberg coalfield in South

Monday, 2 December 2013

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