Botswana’s minerals and energy minister was directed by the country’s High Court to renew the sole prospecting licence held by Tsodilo subsidiary Gcwihaba Resources within 14 days and to synchronise the effective dates of any contiguous licences with the renewed licence.
Gcwihaba holds the prospecting license as part of the Xaudum Iron Formation (XIF) project.
Legal action was initiated by Gcwihaba after the Minister's April 2022 notification that a portion of the licensed area is situated within a buffer zone encircling the Okavango Delta and that any prospecting operations conducted within that region would be obligated to undergo environmental assessment protocols.
The Minister had not responded to Gcwihaba's updated renewal application, which reduced the buffer zone size of the proposed licence block.
As a result, the organisation resorted to legal proceedings.
“This is a very important decision for Botswana as it reinforces those values and systems that establish Botswana as one of the best democracies in the world. Its respect for the rule of law, judicial independence, separation of powers and regular, free, and fair elections are among the tenets of democracy which have earned Botswana this international acclaim.
"The High Court decision reaffirms the basic tenant that the rule of law does indeed prevail," comments Tsodilo chairperson and chief executive James Bruchs.
An initial assessment of the XIF project has determined an estimated inferred mineral resource of 441 million tonnes for the Block 1 magnetite XIF.
The average grades of these minerals are 29.4% iron, 41% silicon dioxide, 6.1% aluminium oxide, and 0.3% phosphorous.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
