Botswana and global diamond powerhouse De Beers have greenlit a monumental $1 billion investment plan, marking a pivotal move to excavate beneath the world’s most prolific diamond mine in terms of volume, according to their joint venture announcement on Wednesday.
The Debswana Diamond Company’s board has granted approval for operations aimed at elongating the lifespan of the Jwaneng mine, transitioning it from an open-pit location to an underground facility.
Jwaneng mine, responsible for approximately 70 percent of Debswana’s profits—a partnership evenly split between the government and De Beers, a major gemstone auctioneer—will undergo a transformation amidst a global downturn in diamond demand. The initiative anticipates extending the mine’s duration by two decades while yielding an estimated annual output of nine million carats, as outlined by the company last year.
De Beers CEO Al Cook emphasized, “Investing in underground operations is critical not only for Botswana’s future but also for the long-term aspirations of the De Beers Group and the global diamond industry’s supply forecast.”
Botswana stands as Africa’s foremost diamond producer, with diamond mining constituting a third of its GDP.
Last year, a pact was struck between the government and mining behemoth Anglo American, De Beers’ majority stakeholder, securing a fresh 10-year agreement for the sale of rough diamonds produced by Debswana and extending the mining licenses by 25 years.
Across the region, diamond miners have grappled with the necessity to delve deeper, bearing increased expenses, as surface gem deposits diminish in recent years.
