De Beers approves $1bn investment at Botswana mine
Diamond company and Botswana government agree to the spending that will convert Jwaneng pit into underground operation
10 January 2024 - 11:59
by Felix Njini and Nellie Peyton
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Diamonds displayed during a visit to the De Beers Global Sightholder Sales in Gaborone, Botswana. Picture: REUTERS/SIPHIWE SIBEKO
Global diamond giant De Beers said it will go ahead with a planned $1bn investment to extend the life of its flagship Jwaneng mine in Botswana, even as the 2023 downturn in gem demand persists.
The Anglo American unit and the Botswana government, which jointly own Debswana Diamond Company, have approved the spending that will convert the Jwaneng pit into an underground operation.
Debswana said in 2018 it planned an investment to extend the lifespan of the mine by 11 years from 2024. De Beers said the spending is necessary as long-term supply of rough gems is expected to tighten.
In 2023 Angola started mining at its new Luele project, the biggest in the country and one of the world’s largest by estimated resources, despite depressed diamond demand.
“The global supply of natural diamonds is falling, so moving forward with the Jwaneng underground project creates new value for investors,” De Beers CEO Al Cook said.
Demand for rough diamonds has been weak in recent months, with India — cutter and polisher of 90% of the world’s rough diamonds — asking global miners to stop selling it gemstones to manage accumulated stocks.
“This investment is aligned with our strategy to prioritise investments in the highest-quality projects,” Cook said.
De Beers in 2023 agreed a new diamond sales pact, which will result in the government’s share of diamonds from the Debswana joint venture gradually increase to 50% over the next decade.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
De Beers approves $1bn investment at Botswana mine
Diamond company and Botswana government agree to the spending that will convert Jwaneng pit into underground operation
Global diamond giant De Beers said it will go ahead with a planned $1bn investment to extend the life of its flagship Jwaneng mine in Botswana, even as the 2023 downturn in gem demand persists.
The Anglo American unit and the Botswana government, which jointly own Debswana Diamond Company, have approved the spending that will convert the Jwaneng pit into an underground operation.
Debswana said in 2018 it planned an investment to extend the lifespan of the mine by 11 years from 2024. De Beers said the spending is necessary as long-term supply of rough gems is expected to tighten.
In 2023 Angola started mining at its new Luele project, the biggest in the country and one of the world’s largest by estimated resources, despite depressed diamond demand.
“The global supply of natural diamonds is falling, so moving forward with the Jwaneng underground project creates new value for investors,” De Beers CEO Al Cook said.
Demand for rough diamonds has been weak in recent months, with India — cutter and polisher of 90% of the world’s rough diamonds — asking global miners to stop selling it gemstones to manage accumulated stocks.
“This investment is aligned with our strategy to prioritise investments in the highest-quality projects,” Cook said.
De Beers in 2023 agreed a new diamond sales pact, which will result in the government’s share of diamonds from the Debswana joint venture gradually increase to 50% over the next decade.
Reuters
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