Botswana diamond miner, Debswana recently said that the temporary dip in diamond prices will likely see the company producing just below its target of 25 million carats for 2011.
The diamond miner, which is a joint venture between De Beers and the Botswana government, also laid-off 700 workers recently.
Given these developments, speculation had been rife on whether Debswana was stuck in mucky waters.
However, Esther Kanaimba-Senai, the Group’s Manager for Corporate and Public Affairs, told Rough&Polished in an interview that Debswana was not in trouble.
She also among other things commented on the progress of the Cut 8 project, which seeks to prolong the Jwaneng Mine by an additional seven years to 2024.
Debswana had targeted an output of 25 million carats this year, but reports say the company will likely fail to meet this target. What has caused this downward revision of output?
Debswana has had major challenges with equipment failure throughout 2011 and this has been the main contributor to the lower than expected performance.
Botswana’s diamond industry is said to be targeting China’s ever growing market. Is the Asian giant’s capacity overrated?
Debswana sells its diamonds through the Diamond Trading Company, therefore they would be better placed to respond to issues of market identification.
Botswana recently reached an agreement with De Beers to buy 10 percent of Debswana production and sell it independently through open tenders outside the traditional DTC framework. What impact will this have on the local diamond industry and economy at large?
Debswana is not able to comment on this as it falls within the sphere of the shareholders, in this particular case, the Government of the Republic of Botswana. You will have to direct this question to economic commentators and the Botswana Diamond Hub, a government entity charged with the development of the diamond industry in Botswana.
Will this arrangement, however, shape Debswana’s operations in any way?
Not that we are aware of at this point. Debswana will continue to mine diamonds in line with demand.
Can you provide an update on Debswana’s plans to reopen the Damtshaa Mine?
Plans are afoot to open Damtshaa next year - 2012.
How has your company progressed with the Cut 8 project?
The Cut 8 Project has progressed very well and according to timelines. The construction phase is all but complete and waste mining has commenced.
Debswana is said to be studying ways to extend the Orapa Mine. Can you provide an update on this undertaking?
If you are referring to the continuous search for diamonds in our lease area, then I can confirm that this is in progress at all our sites and once we find something new, we will share the information as appropriate.
Your company offloaded 700 employees in the past few months as it seeks to cut costs and turn the diamond mining company into a high performance organization by 2013. Is this a sign of a firm in trouble?
It is not a sign of trouble in the company, on the contrary, it is a sign that the company is robust and seriously looking at ways and means of positioning itself to operate at global benchmark targets in order to enhance productivity and shareholder value.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
