Minerals Development Company Botswana

The Minerals Development Company Botswana (MDCB) is a state-owned enterprise established in 2015 to manage and optimize the Government of Botswana’s interests in the mining sector. Operating as a private company under the Companies Act, MDCB functions independently from regulatory bodies, focusing on investment, asset management, and strategic advisory roles within the mining industry.

Mandate and Strategic Objectives

MDCB’s primary mission is to enhance and diversify Botswana’s mineral revenues beyond diamonds. It aims to:

• Manage and safeguard state-owned mining assets.

• Provide technical and commercial advice to the government.

• Promote socioeconomic development through strategic investments.

• Advance value addition and beneficiation within Botswana.

The company also oversees the Government Diamond Valuation Function, ensuring Botswana receives optimal value for its diamond resources.

Key Assets and Investments

MDCB holds significant stakes in various mining operations:

• De Beers: 15% ownership on behalf of the government.

• Morupule Coal Mine: 100% ownership, with expanded production capacity from 2.8 to 4.2 million tonnes per annum.

• Minergy Coal: Convertible debt position, granting potential equity influence.

• BCL Mine: Full ownership; currently under liquidation.

While MDCB does not directly manage Debswana—a 50/50 joint venture between De Beers and the Botswana government—it provides technical and commercial advice regarding its operations.

Project Thobo and Expansion Initiatives

In a strategic move to bolster Botswana’s mining sector, MDCB launched Project Thobo, establishing three new entities:

• Exploration Investment Company Botswana

• Mineral Investment Company Botswana

• Khumo Minerals Botswana

These companies focus on exploration, investment, and mineral development, aiming to attract enhanced investment and optimize mineral resources.

Focus on Critical Minerals and ESG Commitment

MDCB is actively exploring investments in strategic minerals such as soda ash, iron ore, manganese, lithium, copper, nickel, cobalt, and rare earth elements. This diversification aligns with global shifts towards green energy and technology.

The company is also committed to environmental, social, and governance (ESG) principles, investing in research and development for green minerals and exploring alternative energy avenues to reduce reliance on coal.

Financial Goals and Future Outlook

MDCB aims to achieve a portfolio value of $1 billion by 2030, targeting financial self-sufficiency by 2028. The company plans to consistently pay dividends to the government and continue expanding its investments in both traditional and critical minerals.