Botswana Diamonds rebrands, targets copper

 

Botswana Diamonds (LON: BOD) will rebrand as Botswana Minerals and trade under the new ticker BMIN from February 27 as it expands into copper exploration to cut exposure to a prolonged downturn in the diamond market.

The name change follows a strategic review driven by an advanced artificial intelligence model applied to the company’s 95,000 sq km geological database, which includes 375,000 km of geophysical data. The analysis identified significant opportunities beyond diamonds, prompting the board to broaden its focus.

After initially assessing diamond prospectivity, the AI model highlighted additional highly prospective areas. The company secured new diamond licences and defined several drilling targets, with work programs under way to advance drill-ready prospects across the portfolio.

Chairperson John Teeling said Botswana remains one of the world’s premier mining jurisdictions. “Botswana is a top location for exploration, geologically, politically and economically. We have historically focused on diamonds, where we hold highly prospective exploration ground. However, the diamond industry is currently out of favour with investors,” he said.

The global diamond sector faces both technological disruption and a cyclical downturn. Lab-grown stones are expected to dominate the lower end of the market, while large, high-quality natural diamonds remain rare and in demand. Botswana is one of the world’s leading producers of large, rare diamonds, with the sector accounting for about one-third of national revenue and roughly 75% of foreign exchange earnings.

Copper push
After searching for diamonds, the AI team applied the model to other minerals and identified 11 copper target areas. The company applied for the most prospective ground and secured eight copper licences. Teeling said the analysis revealed “strong copper prospectivity, a metal with a very robust future.”

Botswana Minerals has launched a two-stage work program to define and prioritise drill targets across its copper portfolio. It said the newly granted licences have attracted significant third-party interest.

Copper’s long-term outlook is supported by its central role in electrification and the global energy transition, as demand rises amid US and China efforts to secure supply chains for clean energy and high-tech industries. Botswana is positioning itself as an emerging copper producer and continues to promote its exploration-friendly credentials.

The company said the rebrand reflects its expanded strategy while maintaining exposure to both diamonds and copper in a country it considers strategically important for future mineral supply.

Source: DCLA

Botswana’s Diamond Stockpile Nearly Doubles as Prolonged Price Slump Pressures Economy

 

Botswana’s diamond stockpile has surged to almost double its targeted inventory levels as the global slump in gem prices shows little sign of easing, underscoring the mounting pressure on the world’s second-largest diamond-producing nation by volume.

According to Botswana’s Ministry of Finance, the country held an estimated 12 million carats of diamonds at the end of December 2025, nearly twice the government’s allowable inventory threshold of 6.5 million carats. The elevated stockpile reflects weak demand, subdued pricing, and limited scope for increasing production in the near term.

Botswana’s economy is forecast to contract by nearly 1% in 2025, following a 3% decline in 2024, with the downturn largely attributed to the collapse in diamond prices. The market has been weighed down by a surge in lab-grown diamond supply, cautious consumer spending, and softer demand across key luxury markets.

The price weakness has already had tangible operational consequences. Debswana, the 50:50 joint venture between the Government of Botswana and De Beers that accounts for roughly 90% of the country’s diamond sales, was forced to temporarily suspend production at several mines last year in response to unfavourable market conditions.

Despite these challenges, Botswana produced 18 million carats in 2024, second only to Russia, according to data from the Kimberley Process Certification Scheme. However, the finance ministry cautioned that elevated inventory levels will limit any meaningful increase in output until stockpiles are reduced closer to minimum allowable levels.

“This suggests that, over the short term, production is expected to remain broadly unchanged, until inventories are drawn down, creating room for additional production,” the ministry stated in its 2026/27 Budget Strategy Paper. As a result, economic growth will remain constrained unless the non-mining sectors deliver stronger performance.

Diamonds remain the backbone of Botswana’s economy, typically contributing around one-third of national revenues and approximately 75% of foreign exchange earnings. However, external pressures are compounding domestic challenges. Botswana’s diamond exports to the United States are now subject to a 15% tariff, while the prospect of higher tariffs in other major consuming markets, including India, risks prolonging the downturn in prices and compressing industry margins.

“These developments may ripple through to mining operations,” the ministry warned, noting that any sustained slowdown in diamond production would directly reduce government fiscal revenues.

Reflecting the sharp decline in sales, Botswana’s mineral revenues are projected to fall to 10.3 billion pula ($729 million) in 2025/26, well below the historical annual average of 25.3 billion pula. The figures highlight the scale of the challenge facing both the diamond sector and the broader economy as Botswana navigates a prolonged period of market weakness.

For the global diamond industry, Botswana’s swelling stockpile serves as a stark indicator of the structural pressures reshaping the market — from shifting consumer preferences to the growing impact of lab-grown alternatives — and reinforces the importance of restoring balance between supply and demand.

Source: DCLA

 De Beers Sale: Botswana Plus One or Two Buyers

Anglo American CEO Duncan Wanblad says the sale of De Beers will involve one or two shortlisted buyers alongside the government of Botswana, rather than the usual two-round selection process.

Wanblad (pictured) told the Financial Times Metals and Mining Summit (held in London and virtually): “This isn’t going to be the classical first round, second round sale process that you would ordinarily receive for businesses of this type.

“What we are planning to do is now move into the second round with one or two of the potential selected buyers that came through the first round with us and work with the government of Botswana in finalising an agreement that works not only for the potential buyers, but also for Botswana.”

Anglo is expected to raise $3bn to $4bn from the sale of its 85 per cent stake in the loss-making diamond miner. The remaining 15 per cent is owned by the government of Botswana, which wants to secure a majority holding, and to do so by the end of this month.

Angola’s state-owned mining company Endiama has submitted a fully financed offer for a minority stake, as part of a pan-African proposal, which would include Botswana, Namibia, and South Africa.

Former De Beers CEOs Bruce Cleaver and Gareth Penny are leading bidding consortia and there is speculation about interest from Qatari and other Gulf investors.

Source: DCLA

Major opportunity for the diamond business to return to old strengths, says luminary

Botswana is seeking a greater interest in De Beers, and Angola is seeking an interest too. To the mind of diamond luminary Martyn Charles Marriott, this could be an opportunity to return to old strengths and disciplines.

In an article on the website of the International Diamond Manufacturers, Marriott cautions Botswana about going it alone and falling into the trap of yet again putting all its eggs into one basket.

Marriott notes that the current deal Botswana has with De Beers is fantastic in that 80% of mine profits go to Botswana – a level that far surpasses anything in the mining industry anywhere in the world.

Marriott expresses the view that the debate now under way about the future of De Beers presents an opportunity for a return to the discipline and control of the natural diamond market.

Many recall that the best economic viability of the diamond industry took place in the days when it had a stockpile and a quota approach, which kept supply and demand in crucial balance.

In addition, large sums were spent on unforgettable advertising campaigns and the entrenchment of the global diamond engagement ring tradition.

Collaboration is what gave diamonds their old strength; fragmentation is what is causing their current weakness.

Marriott recalls how collaboration led to flow of alluvial diamonds from West Africa being absorbed by the diamond buying offices that were created at source. In addition, Russia recognised the way in which the collaborative approach was good for everyone, from diamond miners through to diamond cutters, diamond traders, and diamond consumers.

It was Marriott, as the then manager of De Beers Dicor, who persuaded the government of Sierra Leone about the benefits of collaboration. This was ahead if his departure from De Beers, which coincided with the discovery of diamonds in Botswana, where he played a key consultancy role from 1970 to 1983.

It was then that Botswana was persuaded that the Central Selling Organisation system could uplift its economy – but with the caveat that the diamonds had to be properly sorted and valued, and production at Botswana’s Orapa was increased to a level that helped Botswana secure a favourable quota. It was also Marriott who initially proposed that the future development of the mines in Botswana should be by an equally shared 50/50 company.

For more than a dozen years, Marriott was a member of Botswana’s negotiating team with De Beers, which secured the very high level of profits that would accrue to the Botswana government from the development of its diamond mines. During the joint development of Jwaneng, he coordinated Botswana’s inputs into the project.

Interestingly, in 1980, even the Australians were persuaded about the merits of the Central Selling Organisation for the Argyle mine.

From 1985 through to the end of the century, Marriott was heavily involved in the restoration of the Angolan diamond industry, as consultant and valuer to Endiama, the article in on the website of International Diamond Manufacturers recalls.

In this instance, as production in Angola was then small, Marriott initially advocated sales by tender amid the build up a successful sales procedure that was eventually undermined by corruption.

The establishment of the Kimberley Process also came about with Marriott help, but unfortunately, in 1986, the diamond world began to disrupt. Argyle and De Beers ceased their cooperation. The Russians became increasingly independent, and Canadian mines opted to market their production separately.

Now synthetic diamonds are adding to the competition.

Meanwhile, Martyn’s two sons, Luke and Benjamin Marriott, are continuing worldwide valuing and have developed eValuer, a system of pricing and valuing diamonds.

“I relate all the above to demonstrate the experience that leads me to write this article concerning a possible future for the natural diamond industry based on cooperation between the African producers,” Marriott writes.

“I must admit that I found no enthusiasm for my ideas for African cooperation during my time working for the Government of Botswana. Moreover, at the end of my work there, I was at odds with its policy. I did not believe in the move towards local processing. I felt it unlikely that local establishments could compete with the industry as it stood, particularly the Indians. I preferred a sovereign wealth fund, further development of the cattle industry, tourism, and concentration on developing other industries. I felt that the pressure on De Beers for local processing could equally well be used on them and Anglo American to develop other industries.

“However, times change. Botswana is seeking a greater interest in De Beers, and Angola is seeking an interest too. To my mind, this could be an opportunity to return to old strengths and disciplines. Some sort of OPEC for diamonds that could provide a basis for the future,” Marriott proposes.

Source: Miningweekly

Okavango: “It wasn’t an Emergency Tender”

Okavango, Botswana’s state-owned diamond company, says its planned sale of 1m rough carats last month was not “an emergency tender”.

And it says the fact that it didn’t sell a single stone didn’t mean it was a failure. Rather, it was the result of a “deliberate and prudent decision to withhold certain goods”.

The “closed” tender on 25 September was reportedly aimed at raising revenue for the government (something the company denies) which had been severely hit by the slump in demand for natural diamonds. But buyers weren’t prepared to pay the reserve prices.

“Withholding goods in the short term ensures better outcomes for the market,” Okavango Diamond Company’s managing director Mmetla Masire (pictured) said in a statement.

“We will not join the race to the bottom on prices, our focus is on protecting the integrity and enduring value of Botswana’s diamonds.”

It said the tender was scheduled back in July and was part of regular sales management, not a last-minute revenue-raising emergency.

The ad hoc tender was a marked departure from the norm. ODC usually holds about 10 scheduled online spot auctions annually for registered buyers, typically raising at least $60m.

The company now sells 30 per cent of the rough output from Debswana, the 50/50 joint venture between the Botswana government and De Beers.

Source: IDEX

Botswana: Zero Sales in Emergency 1m-carat Tender

Okavango, Botswana’s state-owned diamond company, failed to sell a single stone in an unprecedented “emergency” tender of 1m carats last Thursday 25 September.

The auction was aimed at raising revenue for the government, which had been severely hit by the slump in demand for natural diamonds, but buyers weren’t prepared to pay the reserve prices.

Okavango Diamond Company (ODC) has canceled a number of tenders since November 2024 because of weak demand. It had planned to hold two further ad hoc tenders by the end of this year, but may now have to reconsider.

ODC usually holds about 10 scheduled online spot auctions annually for registered buyers. Last week’s ad hoc tender was a marked departure from the norm.

ODC spokesman Dennis Tlaang said ahead of the tender that it wouldn’t be selling at prices that would have “a negative impact on the market”.

The company now sells 30 per cent of the rough output from Debswana, the 50/50 joint venture between the Botswana government and De Beers.

Source: DCLA

Lucara Recovers Rare 37-Carat Pink Diamond from Karowe

Lucara Diamond Corp. has announced the recovery of a rare and unusual pink diamond from its Karowe mine in Botswana.

The 37.42-carat stone, classified as a Type IIa, was unearthed in August and is described as near-gem quality with a distinctive bicoloured appearance. While the majority of the diamond displays an intense pink hue, part of the stone appears partially colourless an exceptionally rare feature.

HB Antwerp, Lucara’s cutting and technology partner, described the discovery as “a rare and remarkable find.” Oded Mansori, co-founder of HB Antwerp, noted:
“This stone has the potential to become one of the most important pink diamonds ever polished. Its intensely rich coloration is a testament to the geological uniqueness of the Karowe mine, and our expertise in the manufacturing process will ensure its vibrant colour is maximised.”

The recovery underscores Karowe’s reputation as a consistent source of exceptional diamonds. Also in August, Lucara recovered a 1,019.85-carat non-gem-quality diamond, the third stone of more than 1,000 carats to be found at Karowe in 2025. This brings the total number of diamonds over 1,000 carats from the mine to nine.

Both diamonds were recovered from the EM/PK(S) section of the deposit using Lucara’s Mega Diamond Recovery (MDR) unit, an advanced X-ray transmission system installed in 2017 to identify and preserve large stones. The MDR is credited with detecting several of Karowe’s most significant recoveries, including the 2,492-carat diamond discovered in August 2024—the second-largest rough diamond ever found.

Meanwhile, Lucara has announced a $10 million drawdown from its $63 million standby loan facility with Nemesia, its largest shareholder, to address short-term funding needs for the Karowe underground expansion project. The $683 million project, now scheduled for completion in the first half of 2028, is expected to extend the mine’s life to at least 2040.

Lucara President and CEO William Lamb said the arrangement reflects the company’s commitment to financial prudence while advancing the underground project.
“This funding mechanism demonstrates the continued confidence and support of our major shareholders in Lucara’s long-term strategy and in the exceptional value potential of the Karowe mine, including the ongoing recovery of some of the world’s most significant diamonds.”

Source: DCLA

Lucara Recovers 1,019 Carat Diamond and Rare Pink Type IIa at Karowe Mine

Lucara Diamond Corp has announced the recovery of two notable stones from its 100% owned Karowe Mine in Botswana during August 2025.

The most significant find is a 1,019.85 carat non-gem diamond, recovered through Lucara’s Mega Diamond Recovery unit. This marks the ninth diamond weighing over 1,000 carats to be recovered from Karowe, and the third such discovery in 2025 alone. In addition, the company reported the recovery of a 37.42 carat near-gem pink Type IIa diamond.

Both stones were recovered from processing EM/PK(S)1 material — the same unit that has produced the majority of the world’s largest recorded natural diamonds.

William Lamb, President and CEO of Lucara, stated that drawing $10 million from the company’s Standby Undertaking with its largest shareholder was a strategic step to ensure financial flexibility during the ongoing Underground Project (UGP) capital programme. He added that the recovery of such exceptional diamonds continues to demonstrate the long-term value potential of Karowe and the ongoing confidence of Lucara’s shareholders.

US Importers to Pay 37% Tariff on Botswana Diamonds

The US is almost certain to go ahead and impose a 37 per cent tariff on all goods imported from Botswana, starting tomorrow 1 August.

That is one of the highest rates of tariff being introduced by the US.

Botswana, the world’s second biggest diamond producer after Russia, has been actively seeking dialogue with the US government to reverse or mitigate the tariff, but without success.

Last month President Duma Boko said tariff imposed on Botswana worsened the already bleak future faced by the diamond industry, and were likely to hinder efforts to grow the African economy.

Most of Botswana’s rough diamonds are sold direct to India, Belgium, and the UAE, but goods worth around $500m annually are exported to the US and will be subject to tariffs. Until now diamonds have been zero-rated.

US importers will have to pay a total of 37 per cent in duties. The reciprocal duty includes the 10 per cent baseline duty that was imposed back in April.

The tariff rules for Botswana, and most other countries, are unlike those for India, where the reciprocal tariff is in addition to the baseline 10 per cent.
US-bound diamonds represent a modest slice of Botswana’s total diamond export business, and most of the country’s diamond revenue is not directly affected by the new US tariff.

It is, however, another blow to a country that relies on diamonds for the vast majority of its export revenue, and that has seen foreign sales halve amid the global downturn.

Source: IDEX

Botswana President: “De Beers is Not Doing its Job”

Botswana president Duma Boko has criticized De Beers for “not doing its job” in an unusually forthright attack.

“Maybe we should take over and sell them (the diamonds) ourselves,” he told an audience last week on a visit to Lesotho, while lamenting his country’s struggling economy.

His comments come just six months after his government signed a long-overdue 10-year sales and mining agreement with De Beers.

His predecessor Mokgweetsi Masisi had threatened on several occasions to walk away from a deal that has been in place since 1969, as he demanded a greater share of the diamonds.

Boko, who swept to power in a surprise victory last October, was seen as less combative in his dealings with De Beers, and quickly got the deal signed, after Masisi’s delays.

But Boko’s comments last week indicate a growing frustration as Botswana battles poverty and high unemployment.

He said diamonds discovered and recovered in Botswana should benefit Botswana.

“So if the diamonds are there, how is the country broke?” he said.

“Now they’re not being sold. Who is selling them? De Beers. Ah, then De Beers is not doing its job. Maybe we should take over and sell them ourselves.

“That’s what we should do. And that would be deemed very radical.

“But the country needs the money and it has the diamonds and somebody who’s supposed to be selling the diamonds is not doing the job.

“Oh, no, and we are simply sitting on our laurels folding up our arms and hoping beyond hope …

“We will take the diamonds and see what we can do with them. They are ours. These diamonds are ours. And so before the end of this year, something very drastic in that space will happen. If it doesn’t happen, we will die trying. By all means.”

We have approached De Beers for comment.

Source: DCLA

Botswana economy hit hard as diamond slump deepens

Botswana is bracing for deeper spending cuts and a widening budget deficit as a prolonged slump in diamond demand pressures its economy, even as the country signals interest in expanding its stake in diamond giant De Beers.

Vice President and Finance Minister Ndaba Gaolathe said the government is preparing to make “drastic” fiscal adjustments to stay afloat, including slashing expenditures and boosting tax revenues.

“The first thing we need to do, obviously, is to live within our means,” Gaolathe said in Washington. “That means cutting spending — doing away with what we believe is some of the fat.”

Diamonds make up a third of Botswana’s revenue and lead its exports, but a prolonged drop in global demand since mid-2023 has forced the government to raise its budget deficit forecast to 9% of GDP — the highest since the pandemic. The downturn has also led to a 3% contraction in the economy this year.

With foreign reserves under pressure, officials plan to cut costs by trimming the government vehicle fleet and curbing travel. They’re also moving to boost revenue through stricter tax enforcement and a new digital transaction levy set to launch in September.

Despite fiscal stress, Gaolathe said Botswana is reluctant to seek financing on international markets, preferring concessional loans. “Let’s borrow where it’s cheapest,” he said.

Bigger De Beers stake
The diamond downturn has also accelerated changes in the industry. Anglo American (LON: AAL), which owns 85% of De Beers, has been seeking a buyer for the iconic diamond company. Botswana, which holds the remaining 15% and is De Beers’ primary diamond source, says it wants a greater say in the sale.

“We are very confident that partners are coming forward,” Gaolathe told Bloomberg, noting interest from countries, funds and companies with “deep interest” in the industry. Botswana wants any new owner to be financially strong and committed to the diamond business long-term — and said it is open to increasing its stake to as much as 50%.

The government and De Beers recently signed a 10-year deal to fund global marketing aimed at reviving demand for natural diamonds, which have been losing ground to lab-grown alternatives. New US tariffs on Botswana’s diamonds have since added uncertainty to any near-term rebound.

“High tariffs on our diamonds will have a deleterious effect on us,” Gaolathe warned. The Bank of Botswana expects only a “muted recovery” this year.

Source: Mining.com

Ousted Masisi Claims De Beer Funded Botswana's Opposition

Botswana’s former president Mokgweetsi Masisi has accused De Beers of funding the party that ousted him from power last November – because he was taking too tough a stance on the critical 10-year diamond deal.

He claims the mining company actively supported the Umbrella for Democratic Change (UDC) which ended 58 years of uninterrupted rule by the Botswana Democratic Party (BDP).

Masisi (pictured) also claims De Beers tried to influence internal politics within the BDP to appoint a more favourable leader and that it deliberately stalled on the signing of a full diamond sales agreement because of tax disputes.

De Beers and the Botswana government agreed the principles of a sales agreement, mining licenses and a package of measures to boost the country’s economy under Masisi, but the deal remained unsigned during his tenure.

It was finally inked three months after he was replaced as president by Duma Boko.

De Beers and the UDC have categorically rejected Masisi’s claims. De Beers said: “We do not provide financial or other support for political purposes to any politician, political party or related organisation, or to any official of a political party or candidate for political office, in any circumstances, either directly or through third parties.”

A UDC spokesperson dismissed Masisi’s claims as outlandish, and challenged him to provide evidence.

Source: IDEX

Botswana’s Economic Outlook Now Negative, says S&P

Botswana’s economic outlook has been downgraded from stable to negative by S&P Global Ratings (S&P) on account of low demand for diamonds.

It forecasts a steep rise in government debt unless there is a substantial increase in diamond prices or significant fiscal intervention.

Botswana’s economy is heavily reliant on diamonds. They account for around 80 per cent of its export earnings and a third of total budget revenues.

De Beers and the Botswana government finally reached agreement last month on the long-term mining and rough sales deals, but sales by their joint venture, Debswana, were down by 52 per cent for the first three quarters of 2024, and there a few signs of a sustained recovery in demand.

Despite downgrading its economic prospects, S&P left Botswana’s long-term foreign and domestic currency sovereign credit rating unchanged at BBB+ and its short-term rating at A-2.

“The negative outlook is on account of S&P’s expectation that weak global demand for diamonds and depressed prices will continue to suppress Botswana’s exports and fiscal position, therefore, delaying government’s fiscal consolidation agenda and the rebuilding of buffers,” said the Bank of Botswana in a statement.

It highlighted the fact that S&P said the newly-elected government’s commitment to reducing unemployment, diversifying the economy and increasing social support, while maintaining fiscal prudence, also had a positive impact to the ratings.

Source: DCLA

Botswana, De Beers sign overdue diamond deal

Botswana’s government signed on Tuesday a long-delayed diamond mining and sales agreement with Anglo American unit De Beers, the world’s leading diamond producer by value.

As part of the deal, Botswana’s share of the diamonds produced by Debswana, a 50-50 joint venture between the country’s government and De Beers, will increase from 25% to 50%. Botswana will receive 10 billion pula ($712 million) in development funding, in line with a provisional 10-year arrangement reached in 2023.

The agreement, in negotiations since 2018, also extends the mining licenses for Debswana until 2054. Previously, the licenses were set to expire in 2029.

The signing of the contract had stalled under former President Mokgweetsi Masisi but was prioritized by President Duma Boko, who took office last October.

Botswana, the world’s largest producer of rough diamonds by value, depends on the sector for the bulk of its national revenue. President Boko, however, has voiced concerns that the industry is not generating enough employment opportunities.

While Debswana’s diamond production accounts for 80% of Botswana’s exports, the country has struggled to diversify beyond mining. Despite a relatively high annual per capita income of $7,820 — exceeding that of oil-rich Gabon and South Africa, the continent’s biggest economy—job creation remains limited.

The deal comes at a crucial time for De Beers, as its parent company, Anglo American, considers spinning out the diamond business through a sale or initial public offering. Analysts warn that weak global diamond prices could complicate such a move.

Botswana remains integral to De Beers’ operations, supplying 70% of its annual rough diamonds. The government also holds a 15% stake in De Beers, underscoring the long-standing strategic partnership between the two parties.

Source: Mining.com

Lucara hits annual diamond production record

Canada’s Lucara Diamond achieved record-breaking production in 2024, highlighted by the recovery of two exceptional stones at its prolific Karowe mine in Botswana.

The miner increased its processed ore to 2.9 million tonnes last year, up from 2.8 million tonnes in 2023. It also set a new milestone with the recovery of 807 “specials”—diamonds larger than 10.8 carats—compared to 602 in the previous year. These accounted for 7.6% of the total recovered carats, up from 5.3% in 2023.

The two most important diamonds recovered last year were the 2,488-carat Motswedi and the 1,094-carat Seriti diamonds, both unearthed at Karowe.

Motswedi, found in August, is the largest diamond recovered in the last century. Its name means “water spring” in the local Setswana language, symbolizing underground water surfacing to bring life and vitality.

The Seriti stone, unearthed in September, translates to “aura” or “presence”, reflecting cultural identity and legacy.

Lucara’s discoveries have continued this year, with the recovery of a1,476-carat non-gem diamond in January.

Revenue jump
The company sold 399,215 carats in 2024, generating $203.9 million in revenue — an 18% increase from $172.4 million the previous year.

“Our world-class Karowe mine continues to set new benchmarks,” CEO William Lamb said in a news release. “The open-pit operations delivered yet another remarkable milestone with the recovery of our seventh 1,000+ carat diamond.”

Lamb also highlighted steady progress on Karowe’s underground expansion, with shaft sinking marking a major step forward. The project is expected to begin commercial production in early 2028.

Since it began operations, Karowe has yielded some of the world’s most remarkable diamonds, including the 1,758-carat Sewelô in 2019, the 1,109-carat Lesedi La Rona in 2015, and the 813-carat Constellation, also in 2015.

Karowe is also credited for having yielded Botswana’s largest fancy pink diamond to date, the Boitumelo.

The mine remains one of the world’s highest-margin diamond mines, producing an average of 300,000 high-value carats each year.

Source: Mining.com

Botswana Forecasts 2025 Diamond Recovery

Botswana’s government is forecasting a recovery in the diamond market later this year, and a consequent expansion of the country’s economy.

It shrank by 3.1 per cent in 2024, but according to vice president and finance minister Ndaba Gaolathe it is now expected to grow 3.3 per cent in 2025.

“This growth outlook is premised on recovery of the diamond industry, which is expected in the latter part of 2025, and continued positive sentiment in the non-diamond mining sectors,” he said yesterday (10 February) in his budget speech for 2025/26.

Diamonds account for around 80 per cent of Botswana’s export earnings and a third of total budget revenues.

De Beers and the Botswana government have finally reached agreement on the long-term mining and rough sales deals.

But their joint venture Debswana reported sales for the first three quarters of 2024 were down by 52 per cent.

In December, Gaolathe warned that Botswana’s economy could contract by 1.7 per cent during 2024 as a direct result of the diamond.
Slump.

But he predicted better times ahead, with an expected rebound in the diamond market driving overall growth in 2025.

Video grab shows finance minister Ndaba Gaolathe delivering his 2025/26 budget.

Source: DCLA

De Beers seals sales and mining contract with Botswana

De Beers, the world’s leading diamond producer by value, has concluded negotiations with the Botswana government on a new sales agreement and the extension of mining licenses for their joint venture, Debswana, until 2054.

The finalized agreement, the Anglo American unit said on Monday, follows discussions aimed at setting a new framework for the sale of rough diamond production from Debswana, a 50:50 partnership between De Beers and Botswana. The deal also secures the renewal of Debswana’s mining licenses, which were previously set to expire in 2029.

“Until the execution of these new agreements, the terms of the existing agreements will continue to remain in effect,” the diamond producer said.

Currently, 75% of Debswana’s diamond output is sold to De Beers. In 2023, the two parties reached a provisional 10-year agreement under which Botswana’s share of production was set to gradually increase to 50%.

The accord also established that Botswana’s state-owned diamond trading company was expected to receive 30% of Debswana’s production.

The government would also secure 10 billion pula ($712 million) in development funding as part of the deal. However, the deal stalled under the leadership of former President Mokgweetsi Masisi.

In January, newly elected President Duma Boko announced that his administration had reached an agreement with De Beers. Botswana, the world’s largest producer of rough diamonds by value, depends on the industry for the majority of its national revenue.

This new agreement comes at a pivotal time for De Beers as parent company Anglo American plans to spin off the diamond business through either a sale or an initial public offering. Analysts have noted that current depressed diamond prices may complicate efforts to finalize such a transaction.

Botswana remains a cornerstone of De Beers’ operations, accounting for 70% of its annual rough diamond supply. The government also holds a 15% stake in De Beers, underscoring the importance of the long-standing partnership between the two parties.

Source: DCLA

Botswana’s leader says diamond deal reached with De Beers

Botswana’s president Duma Boko, who swept to power in October elections, said his government has reached a diamond extraction and sales agreement with De Beers that will bring certainty to the gem-dependent economy.

Terms were finalized by midnight on Jan. 24 and will be announced soon, Boko said in an interview on Tuesday. The southern African nation is the world’s biggest producer of rough diamonds by value and the industry generates the bulk of its income. Most of Botswana’s gems are mined by Debswana, a venture between Anglo American Plc’s De Beers unit and the government.

“The issue with De Beers has been settled,” Boko said in Dar es Salaam, Tanzania, where he is attending an energy conference. He indicated last week at the World Economic Forum in Davos, Switzerland, that an agreement was imminent, and said he had followed through on his commitment to conclude it.

During his election campaign, Boko was critical of his predecessor Mokgweetsi Masisi’s handling of talks with De Beers to renew the more than half century alliance between Botswana and the world’s largest diamond firm. Masisi had caused De Beers to consider walking away from the deal, Boko said, and he sought to reopen talks.

Boko’s Umbrella for Democratic Change coalition unseated Masisi’s Botswana Democratic Party, which had led the country since independence from the UK in 1966.

The new agreement had not resulted in “any major changes, just a little tweaking of things here and there,” he said.

Under the provisional terms of a 10-year accord announced by Botswana’s previous administration in July, the state-owned diamond trader was to get 30% of Debswana’s output, while the government would secure 10 billion pula ($720 million) in development funding.

De Beers didn’t immediately respond to a request for comment.

An arid, underdeveloped nation at independence, Botswana has leveraged the discovery of diamonds in 1967 to build itself into the richest country per capita on Africa’s mainland, according to the World Bank.

Lab threat
Still, a prolonged slump in the global diamond market and a challenge from lab-grown gems has hurt its economy. Boko said the agreement will restore certainty and economic growth will follow.

The country will focus on promoting its gems as natural and charging a premium for their provenance, marking them to show they have been mined in the country and their sale promotes development, he said. Diamond revenues in some other parts of Africa have been used to finance conflict.

“We appreciate the threat posed by lab-grown diamonds. I don’t want to give them the privilege of calling them diamonds. Diamonds are natural,” he said. “We will then market our diamonds in terms of their provenance and of the story behind the diamond.”

Source: mining.com