Preliminary Mineral Resource Accounts and Development Implications for Botswana

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May 2014
Source: 
World Bank Group

The mining sector continues to be the backbone of Botswana’s economy, despite efforts to diversify. Mining is still, by some measures, the largest contributor to gross domestic product (GDP), generates the majority of export earnings, and makes a major contribution to government revenues. The use of mineral revenues is, therefore, of critical importance for sustainable development. 

This report is part of an ongoing project under the Wealth Accounting and Valuation of Ecosystem Services (WAVES) global partnership, which aims to promote sustainable development by mainstreaming natural capital in development planning and national economic accounting systems, based on the System of Environmental-Economic Accounting (SEEA). 
 
For Botswana, WAVES presents physical assets accounts and provides an estimate of resource rent generated by mining during the period 1994 to 2012. Both physical and monetary accounts are constructed for diamonds, copper-nickel, and coal. Overall, this study has the following objectives:
  • Quantifying the major physical trends in resource stocks for major minerals;
  • Quantifying the major monetary trends in resource stocks for major minerals;
  • Exploring the extent to which the government has captured the resource rents from mineral extraction for the country’s development and growth;
  • Identifying the uses to which mineral revenues have been put;
  • Producing estimates of national mineral wealth;
  • Identifying any challenges with regard to the appropriation and use of resource rents; and
  • Identifying challenges that need to be addressed for the future compilation of mineral accounts.
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Country: 
Botswana
Sectors: 
Metals and Minerals
Themes: 
Natural Capital
Key search terms: 
mining sector, natural capital accounting, mineral resources, mineral accounting, system of environmental-economic accounting, resource rent, wealth accounting, ecosystem services valuation

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