Economic fears heighten as Botswana diamond deposit diminish

Officials at diamond mining major, Debswana, said last week that the country has mined more than half of its total diamond deposits so far. Addressing a recent Jwaneng mine media tour, the officials revealed that the country has mined over 58% of its total diamond deposits, leaving behind 42% that is currently being mined.

They said the latest data points the country to an eminent end of diamond mining, the countries principal export and biggest contributor to the gross domestic product (GDP).

When giving a business review of the Jwaneng Mine recently, the mine General Manager, Koolatotse Koolatotse, said for the 57 years of Botswana’s existence, diamond revenue has been key in developing the country but warned that “we have to realise that the country is only left with 42% of the initial diamond deposit”.

“Up to date 58% of diamond reserve have been mined and as Jwaneng Mine we are making plans to start seeing ahead of the diamond depletion era and we are creating avenues that will support this town and the country after diamond mining is over,” he said.

Statistics Botswana’s International merchandise data suggests that as of August 2023 diamonds lead principal exports with a total of 78%, followed by copper with nine percent, highlighting the weight of diamonds to Botswana’s economy.

Diamonds alone generate over 80% of Botswana’s foreign exchange earnings and almost half of its government revenue. De Beers report on the other hand revealed that, the diamond industry directly accounts for one in 20 jobs in the country.

The country has been trying to put some of its eggs in other baskets, looking towards other pockets of opportunity within the mining space that have the capacity to shoulder the economy once diamond mining has halted.

President Mokgweetsi Masisi while addressing a high level delegation in Perth during the Africa Down Under conference said he had tasked Botswana Geoscience Institute (BGI) to accelerate prospecting of other minerals in Botswana to widen the mining space to include other critical minerals.

“Botswana’s geological environment Is conducive to a variety of metals, and central to the exploration and mapping drive. We are in search for new mineral commodities, in particular rare earth elements and battery metals,” he said then.

The result of which has lead to the discovery of critical minerals in the Chobe belt such as Platinum and Manganese in Kanye which is about to start commercial mining operations according to data from BGI.