Page 38 - Woman to Woman Magazine: Special Edition 2020

MINING

Contraction of Activity

Mining Recession leads in the first quarter of 2009, when the
diamond registered zero production
to Economic Depression due to economic recession. Statistics
Botswana underscored that the current
output decline came as a result of the
Covid-19 pandemic and nationwide
• Production contracted heavily by 65.1 percent in Q2 lockdown regulations which affected
• Strong positive growth posted in Soda Ash excavation operations of businesses at large.
• President Masisi confident ETRP will boost economy “The main contributor to the 65.1 percent
in the Index of the Mining Production
STAFF WRITER to the change in the landscape by cutting were diamonds contributing big
back on production. This allowed them to negative 64.8 points. On the other hand,
otswana’s mining recession align production costs with the reduced Soda Ash and Salt were the only positive
has deepened heavily in the level of sales. The trend isn’t peculiar contributors to the Index of Mining
second quarter, with official to Botswana but has been adopting by Production. Diamond production fell by
Bdata by Statistics Botswana mines globally,” said an Economist. 67 percent,” said SB.
(SB) showing that the mining economic
activity contracted by 65.1 percent. Botswana’s exports are mainly made up Furthermore, SB said Covid-19 pandemic
of diamonds, revealing the reliance on contributed to the weak demand for
The Index of Mining Production stood mining revenue. “This unprecedented diamonds as it is forced countries to
at 30.0 during the second quarter of hit on the mining sector has a direct impose travel restrictions thereby resulting
2020, thus showing a year-on-year of impact on government’s revenue in sightholders unable to purchase.
65.1 percent from index of 89.5 posted generating ability. The precious stones
during Q2 of 2019 according to report. and the mineral sector has layers of Gold production decreased by 34.5
revenue levels that government enjoys. percent during the second quarter of
Consequently, President Mokgweetsi This is via trade, tax and over having a 2020, as compared to the same quarter
Masisi during the State of the Nation direct stake in output process,” added of the previous year while quarter-on-
Address (SONA) reiterated that economist from University of Botswana quarter basis reflect 16.5 percent decrease.
economic activity contracted heavily by (UB) in the Department of Economics in The decline was as a result of Covid-
8.9 percent due to decline in mining. an interview with Noble magazine. 19protocols which slowed down the
mining activities and market demands but
He said the onset of Covid-19 affected He said looking at our import bill, significant growth was realised on Soda
economies in various ways and one such generally food stuff, machinery, electrical ash production with 32 percent.
impact was in the area of travelling of equipment along with chemicals and
people and transport of goods such as rubber equipment rank within the top “The increase resulted from the
the diamonds to the markets. five (5) imported products by Botswana. strategy to defer halting operations for
Statistician General Burton Mguni care and maintenance in response to
Masisi insisted that the Economic highlighted that comparison on a quarter- Covid-19 pandemic, in turn the mine
Recovery Transformation Plan (ETRP) on a quarter basis shows a drop of 64.4 was compelled to increase production
that was launched by the government percent, from index of 84.6 realised so as to meet the demand as well as
recently would worth P40 billion will be during Q1 of 2020 to 30.0 in 2020 Q2. stockpiling for future use,” said Statistics
instrumental in reviving economy. Botswana on ash output surge.
This was the biggest decline in activity
“As expected, mining companies reacted since the decline of 91.6 percent recorded

Continued from Page 36 community development priorities and kimberlite, the rock in which diamonds
has been embedded in operational and are found.
The 12 2030 Building Forever goals, and leadership scorecards and incentive
the operational plans, investments and structures. De Beers is already employing De Beers will continue to work alongside
milestones that underpin them, are the dynamic innovations and technology to key organisations that provide guidance
outcome of a multi-year programme to support the delivery of its goals, including and expertise as the company pursues
stretch the organisation’s vision of the the blockchain-based Tracr™ platform, a its 2030 goals, including Fauna and
positive lasting impact it could make. range of innovative mining technologies Flora International, Peace Parks
It has involved all parts of De Beers’ and the ground-breaking CarbonVault™ Foundation, UN Women, WomEng,
business, as well as both long-term and initiative, which captures carbon from Stanford Graduate School of Business
new partners, aligns with national and the atmosphere and locks it away in and government partners.
38 Noble Magazine // 2020 Special Edition