GABORONE, Sept 18 (Reuters) - Botswana has awarded

Giyani Metals ( CATPF ) a 15-year mining licence, the company

announced on Wednesday, paving the way for it to become the

country's first battery-grade manganese producer.

Manganese is a key component in batteries and its demand is

expected to be driven by growth in electric vehicles, among

other clean energy applications.

Giyani's Kgwakwe Hill (K.Hill) project will process

manganese oxide material on-site to produce high-purity

manganese sulphate, making it one of the few battery-grade

manganese projects outside China. The Asian country controls 90%

of global high-purity manganese supply.

The K. Hill mine will have an initial annual output of

80,000 metric tons of high purity manganese sulphate monohydrate

annually over a 57-year life, according to a 2023 preliminary

economic assessment.

"The next step is production of battery-grade manganese from

our demonstration plant, which is under construction in

Johannesburg, South Africa," the Canadian company said in a

statement.

The product from the demonstration plant will be used for

offtaker qualification, a vital step before offtake agreements

can be signed, it added.

Botswana, the world's biggest diamond producer by value, is

heavily reliant on the gems, which contribute 30% of national

revenues and 70% of foreign exchange earnings.

The country is looking to diversify within the mining sector

with minerals such as copper, nickel, coal and iron ore.

Apart from diamond mines, the country has two operating coal

mines and three copper mines.

With global appetite for green minerals on the rise due to

the energy transition, the demand for battery metals such as

manganese is expected to reduce the country's reliance on

diamonds.