Botswana expects a significant improvement in its diamond production by the end of 2010, and hopes that a new series of legislation will revive the country's minerals sector, according to Polished Prices.

Permanent Secretary of the Minerals, Energy, and Water Resources Ministry Gabaake Gabaake, speaking in Perth, Western Australia, said that "a significant improvement in diamond production is expected by the end of 2010, as markets are now recovering."

In 2009, the global financial crisis hit the diamond industry and Botswana – one of the world's top rough diamond producers – saw diamond production plummet by nearly half, totaling 17.7 million carats compared to 32.6 million carats in 2008. Nevertheless, the nation's rough diamond output for 2009 accounted for 14% of the world's total diamond production by volume and 17% by value.

Discussing Botswana's new laws for the minerals sector, which he hoped to see take effect by the end of 2011, Gabaake said, the government hoped to sell all diamonds produced in Botswana within Botswana.

Gabaake says Botswana seeks to issue prospecting licenses within 60 days of an application being submitted, mining licenses within 30 days and permits for diamond export by diamond suppliers within two days.

Aside from the aspects of the proposed laws addressing the diamond industry and diamond trade specifically, Botswana's legislative strategy emphasizes a transition to minerals beneficiation and downstream activities, as well as diversification. The legislation also encourages suppliers to manufacture mining consumables locally.

According to Gabaake, the new minerals policy will ensure that Botswana sees the maximum economic benefits from the recovery of its mineral resources while allowing investors to earn "competitive returns" so as to stimulate minerals exploration and exploitation.

"The turnaround strategy is working, with the latest Fraser Institute report ranking Botswana as the highest-ranking African country for attractiveness of mining policy," Gabaake said.