Botswana aims to enhance mining exploration amid challenges in the diamond market
Botswana intends to increase mining exploration, particularly for critical minerals, as it aims to diversify beyond diamonds by surveying the approximately 70% of its territory that is still unexplored, stated mines minister Bogolo Joy Kenewendo on Tuesday.
The Southern African nation, once regarded as a beacon of success on the continent, has faced significant challenges due to a sustained decline in the global diamond market, influenced by economic instability and the increasing appeal of lab-grown diamonds. Diamonds generally account for approximately one-third of Botswana’s national revenue.
Debswana Diamond Company, Botswana’s joint venture with De Beers that represents 90% of the nation’s diamond sales, has no intentions to boost production in light of the sluggish market. “There is no use in us burning cash and stockpiling (diamonds),” stated Debswana CEO Andrew Motsomi.
At the close of December, Botswana possessed a stockpile of 12 million carats, which is almost twice the government’s permitted inventory level of 6.5 million carats, as reported by the finance ministry data.
U.S. INTEREST
Kenewendo stated that although diamonds will continue to be the foundation of the mining sector, the government is advancing its efforts to expand the mineral base, particularly into critical minerals.
She mentioned that a newly established state-owned exploration company would prioritize increasing exploration activities. “We were concentrating more on exploring for diamonds rather than seeking other high-value minerals.” “We are set to change that,” Kenewendo stated to Reuters during an African mining conference in Cape Town. “If you’ve only discovered 30% of your country, it truly highlights our intense emphasis on diamonds.”
“Investors are showing some reluctance to engage in exploration.” “You can lose a significant amount of money by exploring without achieving any results,” she added. “Our goal is to confirm that we possess accurate data and understand the landscape, enabling us to determine whether we wish to invest in that area.”
Botswana stands as the leading diamond producer globally by value and is becoming a notable center for copper mining.
The competition for critical minerals, including those essential for advanced manufacturing, has intensified between the world’s two largest economies, the U.S. and China, as they vie for resources such as copper and cobalt.
Kenewendo mentioned that the U.S. had shown interest in collaborating with Botswana on exploration and mining, although discussions were still in the preliminary phase. “We will see how that goes,” she stated. “We are simply participating in broad investments within the mineral sector.”
