Botswana Diamonds, which was listed early February on AIM as a spin off from African Diamonds is said to be a “new” player in the African diamond industry. The company recently started bulk sampling of its BK5 diamondiferous kimberlite in Botswana’s Orapa as part of its quest to join the growing list of diamond juniors operating in the southern African country. Botswana Diamonds was also evaluating its BK5 and AK8 kimberlites for commercial exploration. Apart from Botswana it also has interests in Cameroon, DRC and an eye on Zimbabwe’s Marange diamond fields. Rough&Polished’s Mathew Nyaungwa caught up with the company’s chairman John Teeling to get an insight on Botswana Diamonds’ operations.
We understand Botswana Diamonds is currently focused on late stage projects in Botswana.Can you give an update as well as your plans for these projects?
Botswana Diamonds (BOD) has three late stage projects in Botswana, AK8, AK9 and BK5 all in the Orapa region. Currently we are undertaking a bulk sampling programme on the three kimberlites, 5500 tons on BK5 and 1000 tons each on AK8 and AK9.
In recent years $4m has been spent exploring these three kimberlites. The purpose of the current work is to establish carat value and grade. The objective is a minimum value of $12 a ton in the ground. That number gives development options. The work has commenced on BK5 and first results are expected in June.
What is your company’s view on Botswana government’s drive to make the country a diamond hub in Africa?
The Botswana government has an enlightened approach to the diamond industry. The desire to increase domestic value added makes local sense. There are more diamond mines to be found in Botswana. The positive attitude of the government will speed up discoveries. Botswana is an excellent country in which to explore and work.
Botswana Diamonds has shown interest in Zimbabwe at a time the country’s diamond exports from Marange are currently suspended by the Kimberley Process. Do you think the trade body had been handling the Zimbabwean issue fairly or professionally?
The Kimberley process attitude toward Zimbabwe is farcical. Sales of Marange diamonds are widespread and diamontaries are frequent visitors to Harare. Marange is too big to ignore. The sooner diamond sales are regularised the better.
What is your comment on Zimbabwe government’s plans to wholly own all alluvial diamond mines?
Any certainty in the Zimbabwe government plans for diamonds is better than the current uncertainty. If the government do decide to retain 100 percent control of alluvial diamonds BOD will seek a Production Sharing Agreement whereby we fund and operate in return for a share of the output.
Botswana Diamonds has a 75 percent interest in 8000 square kilometres of licenses in the Mobilong District, in Cameroon and was said to be negotiating to a joint venture with a company that has applied for the adjacent ground of your licenses. What is the latest on this project and your negotiations?
BOD holds an 85 percent interest in 8000 sq km in Mobilong in the Cameroon. Reconnaissance work is underway to identify the extent of the diamond bearing rocks. Within 12 months the area must be reduced to 1000 sq km. The BOD ground adjoins that of C&K Mining a North Korean/Cameroon joint venture at an early stage in developing a paleo-placer deposit.
Your company is also said to be involved in diamond exploration in DRC, what is the latest on your activities in this country and what is your projection of diamond mining there?
Our DRC ground which is a joint venture with Bugeco is not being explored at present.
Firestone Diamonds was the first diamond company to sell its diamonds out of De Beers’ system in Botswana last December. How will Botswana Diamonds sell it gems?
BOD has no diamonds to sell at present. When we have production marketing arrangements will be agreed with the Botswana government. I suspect that a tender option operated in Gaberone is likely.
How does your company view the current state of the diamond industry?
The diamond industry has rarely been in a healthier state. Supply is at best flat and demand is increasing. Chinese, Indian and Brazilian women want diamonds. The future looks very bright.
Mathew Nyaungwa, Rough&Polished, from Botswana
