Reuters reported that Botswana has frozen the issue of any new prospecting licenses for coal, coal bed methane and related minerals pending the finalization of a new strategy for the coal sector.

Mr Boikobo Paya permanent secretary in the minerals ministry said the moratorium would last until the road map was finalized which was expected within six months.

He said that "The moratorium will assist us to develop a proper road map that we can share with the industry. We want to look at the current and future coal markets in order to maximize economic benefits from the mineral."

The Coal Roadmap, put together by consultancy Wood Mackenzie is a strategy on how to optimise benefits from the country estimated 212 billion tonnes of coal reserves.

Exploration rights for coal and coal-bed methane are among the most popular licenses sought in mineral-rich Botswana. Demand peaked in 2009 when 50% of all prospecting licenses were for exploring for coal, CBM and related minerals.

The government believes that Botswana coal and gas reserves have the potential to grow into an industry as big as its bedrock diamond sector, which generates half of Botswana's revenue and a third of gross domestic product.

(Sourced from Reuters)