Botswana is located in southern Africa bordering Zambia, Zimbabwe, Namibia and South Africa. After geologists discovered diamonds in Botswana in 1967, the De Beers Botswana Mining Company was launched in 1969. The Orapa Mine and the Jwaneng pipe, the richest diamond mine in the world, followed. The Government of Botswana increased its shares in the company to 50 percent by the time the Letlhakane Mine opened in 1975. The De Beers Botswana Mining Company was rebranded to Debswana Diamond Company.
Debswana has three operational mines, Lethlhakane, Orapa and Jwaneng. The Letlhakane mine near Orapa was founded in 1973, as was the much larger Jwaneng mine in the south of the country but, while Letlhakane came into production by 1977, Jwaneng did not start mining operations until 1982. Jwaneng is by far the richest and the largest of the three mines and one of the largest diamond mines in the world.
Mining problems are addressed by the Ministry of Mines, Energy & Water Affairs where the Department of Mines sees its primary task in establishing and maintaining an effective organization to administer mineral exploitation legislation, and to enhance socio-economic, financial and other benefits to Botswana arising from the exploitation of mineral resources.
The Mineral Affairs Division has the primary responsibility of advising the Ministry on all matters concerning Minerals Policy:
- Minerals prospecting (performance of policy against expectation and developments in the environment)
- Mining (fiscal treatment of mineral activities, level of government investment mineral projects)
- Mineral processing and beneficiation (value addition)
- Trade in mineral products (analysis of & prevailing environment and forecasting)
- Fiscal treatment of mineral activities
- All financial, commercial and administrative issues arising in those mineral sector companies in which government is a shareholder
- Cerfitication of Kimberley Process Certification Scheme (KPCS)
- Mineral Investment Promotion activities.
The Department of Geological Survey has a mandate to collect, assess, archive, advise on and disseminate all geo-scientific data related to the rocks, minerals and water resources of Botswana.
Companies
1. Debswana Diamond Company
Debswana Diamond Company is jointly owned by De Beers and the Government of Botswana. It is the world's largest diamond producer by value and has four diamond mining operations situated at Jwaneng, Orapa, Letlhakane and Damtshaa.
a) Jwaneng Mine
Jwaneng lies in south-central Botswana on the fringes of the Kgalagadi desert, 160 km south west of Gaborone and 80 km west of the traditional capital of the Bangwaketse district, Kanye village. The Jwaneng pipe was discovered in 1972 by De Beers prospectors. In 1978 an agreement was signed between the Government of Botswana and De Beers to establish the mine, which was officially opened on 14 August 1982. The richest diamond mine in the world, in 2009 Jwaneng produced 9.04 million carats from 6.06 million tonnes treated (2008: 13.674 million carats from 15.766 tonnes treated). Production normally varies according to the mining plans of between approximately 12.5 to 15 million carats per year. With the global economic recession, 2009 was an exceptional year in that production was reduced in line with demand for diamonds from the DTC Sightholders. In November 2009 the shareholders of Debswana (the Government of the Republic of Botswana and De Beers), gave the green light to proceed with a major extension project at Jwaneng. The project, also known as Cut 8 will secure approximately 95 million more carats and extend the life of the mine out to 2025. This investment ensures continuity of supply from the world’s richest diamond mine, and could be worth in excess of $15 billion over the life of the mine.
b) Orapa Mine
The Orapa pipe is the world's second largest diamond-producing kimberlite pipe. Following detailed exploration by De Beers, diamonds were discovered at Orapa in 1967. The mine began production in July 1971, and a nation awoke to the stunning reality of great wealth and a place on the global map. Orapa produced 7.575 million carats of diamonds from 8.817 million tonnes treated in 2009 (2008: 16.869 million carats from 18.569 tonnes treated). An initial closure plan has been developed. This covers the scope of work that will be required to effect the physical closure of the mine infrastructure. Financial provision is being made to fund the closure work.
c) Letlhakane Mine
The resource was first discovered during the sampling and evaluation process at Orapa, and became Debswana's second mine when it opened in 1975. In 2009, 1.066 million carats were recovered from 3.8 million tonnes of ore (2008: 1.2 million carats from 3.794 million tonnes treated).
d) Damtshaa Mine
Commissioned in 2002, the mine recorded its first head-feed load on 28 October of that year. Full production was reached in March 2003. As it is a small operation, Damtshaa is managed from the Orapa mine. Damtshaa has been forecast to yield approximately 5 million carats of diamonds over its projected 31-year life, at a rate of up to 0.161Mcts per annum. In 2009, 54 000 carats were recovered from 60 000 tonnes treated. (2008: 533 000 carats recovered from 2.883 million tonnes treated).
e) Botswana Diamond Valuing Company (BDVC)
BDVC is the second largest rough diamond sorting and valuing operation in the world. It was established in 1972 as a joint venture between De Beers and Botswana Development Corporation to carry out the preliminary sorting of diamonds from Orapa Mine, which was the only operational Mine at the time. In 1977, BDVC became a wholly owned subsidiary of Debswana. Botswana Diamond Valuing Company (BDVC) sorts and values Debswana's entire production of diamonds from the Jwaneng, Orapa, Letlhakane and Damtshaa mines, and associated diamond deposits.
2. Diamond Trading Company Botswana
A 50/50 partnership agreement between De Beers and the Botswana government resulted in the Diamond Trading Company Botswana being established in 2008. In addition to sorting and valuing Debswana’s production, the purpose of DTC Botswana is to make aggregated diamonds available for sale in Botswana for local manufacturing. It is envisaged that DTC Botswana will be the primary vehicle for creating a sustainable and profitable downstream industry in Botswana.
The following are DTCB sightholders:
Dalumi Botswana. Dalumi offers a comprehensive line of diamond and jewelry products, services and brands. Their diamond polishing and jewellery manufacturing facilities in Israel, Botswana and China utilises the latest technology to create “high” quality products.
Dia Holdings. Star Diamond Group, founded in 1948, offers services covering every facet of the diamond jewellery business. They provide clients with value-added services from rough distribution to forward planning, polished/jewellery distribution, design and marketing solutions and co-operative branding.
Eurostar Botswana. Eurostar Botswana is part of Eurostar Diamonds International, a global diamond conglomerate employing 10,000 specialists worldwide and annual sales of over $1 billion. Renowned for its precision, Eurostar has garnered the trust of prestigious watch and jewellery brands globally. Eurostar employs 25% of the diamond polishing workforce in Botswana.
H & A Cutting Works Botswana, part of Exelco, is a consumer-facing diamond company, retailing and branding diamond collections and concepts globally. Activities include the largest chain of bridal diamond stores in Japan, and global branded activity under the Tolkowsky brand, and a strategy and branding division.
Laurelton Diamonds Inc., a wholly owned subsidiary of Tiffany & Co, is a manufacturing and rough diamond trading company with operations across the globe including U.S.A., Belgium, Botswana, Namibia, South Africa, Vietnam, Mauritius and China. The Company procures rough diamonds and manages the worldwide supply chain that cuts, polishes and supplies finished polished diamonds to Tiffany & Co.
Lazare Kaplan Botswana. Founded in 1903, LKI has been a leader in industry innovation: as pioneers of Ideal cut diamonds, first to laser-inscribe diamonds, and first to offer uniquely brilliant diamonds as a brand with complete marketing support. LKI also cuts and polishes commercial diamonds.
Leo Schachter Diamonds is one of the world’s leading manufacturers of polished diamonds. Founded in New York in 1952, the company now has factories and offices in 11 countries around the world. The company’s world-wide headquarters is located in Tel Aviv, Israel, which also serves as its international distribution hub.
Motiganz Botswana is the manufacturing center for the MOTIGANZ Diamond Group. It specialises in Cubes, Botswana’s unique gem product.
Pluczenik Botswana. Sightholder for nearly 60 years, the company offers the spectrum of diamond sizes, shapes and qualities, rare stones and unique jewellery and are trendsetters with brands such as Escada, Chaumet and Fred.
Safdico Botswana. Safdico specialises in high-end blue-white gems, fancy colours and large sized diamonds.
Shrenuj Botswana. Founded in 1906, Shrenuj Group employs technology-intensive manufacturing to produce “high” quality diamonds as well as medium and fine jewellery. With its global reach, Shrenuj caters to regional customer requirements with a wide range of diamonds and jewellery.
Steinmetz Diamonds Botswana. The Steinmetz Diamond Group is a multinational company with interests ranging from manufacturing to retail. Specialising in large, fancy coloured and rare stones, the Group supports a full spectrum of products and has a focus on long term relations with its clients.
Suashish Diamonds Botswana. Vertically integrated, financially “strong”, technologically advanced and customer oriented Suashish supplies loose polished and finished jewellery globally.
Teemane Manufacturing Co is part of the international Diarough group. It provide a comprehensive range of polished.
Yerushalmi Bros Botswana is a key manufacturing arm of the Yerushalmi group which supports the full range of the company’s global programmes.
Zebra Diamonds. For a century, IGC Group has been delivering Belgian excellence to high end jewellery manufacturers, retailers and wholesalers worldwide. From carefully chosen rough to perfectly shaped Rounds, Single cuts and Fancy shapes, the company said it meets the strictest standards required by the luxury industry.
3. Botswana Diamonds (Formerly African Diamonds)
Botswana Diamonds is a diamond exploration and project development company that holds exploration licenses in Botswana, early-stage diamond license applications in certain areas of Zimbabwe and Cameroon. In addition, the company has an interest in exploration licenses in the Democratic Republic of Congo as well as a minority interest in Stellar Diamonds. The company’s strategy was to have a pipeline of projects in southern and central Africa stretching from early stage diamond exploration to existing late stage development with production to follow, if justified. The immediate focus was on the late stage Botswana licenses where a conceptual study had been identified possible production opportunities. Botswana Diamonds was born out of African Diamonds (AFD) after it entered into an implementation agreement with Lucara Diamond pursuant to which Lucara acquired all of the issued share capital of AFD by way of a Scheme of Arrangement. In turn AFD shareholders hold 26.57% of Lucara that now own 100% of AK6. Botswana Diamonds hold all of the interests of AFD apart from AK6. Botswana Diamonds listed on AIM in February 2011.
Botswana Diamond projects
AK8
The kimberlite has an estimated size of between 5 and 6 hectares, determined through drilling and ground geophysics. It appears to be tri-lobate and the southern lobe (up to 2.5ha) has an estimated grade of between 3-7cpht whilst the northern and eastern lobes are lower at 1-2cpht.
The average diamond revenue is $100/carat. Initial modeling indicates that the pipe may contain up to 20 million tonnes of ore to a depth of 300 metres. Bulk sampling was planned to test the higher grade, near surface, southern lobe of the kimberlite in order to verify the diamond revenue as well as the grade.
AK9
The kimberlite has an estimated size of 3 hectares, that was determined from drilling and ground geophysics. The grade is currently shown to be between 2.5 to 3.5 cpht, albeit from limited sampling information. Initial modeling indicates that pipe may contain up to 11 million tonnes of ore to a depth of 250 metres. Portions of the kimberlite has significant overburden but bulk sampling was planned to test the near surface portions of the kimberlite in order to verify the diamond revenue ($26/carat), estimated from a small parcel of only 4 carats, as well as the grade.
Botswana BK5
The BK05 kimberlite is mostly sub-cropping and the near surface area is estimated to be 5.8 hectares in size as determined from drilling and ground geophysics. Earlier sampling showed the grade to be between 4 to 7cpht. Further drilling and some bulk sampling was planned to constrain the geological model and to verify the grade and diamond revenue.
Botswana PL07/2004...
This anomaly is topographically distinct from the anomaly associated with the De Beers owned BK15 and BK17 kimberlites, located immediately north of PL boundary. This anomaly occurs at a higher elevation than that of the other kimberlites and appears to be associated with another kimberlite(s). Follow-up sampling was planned to confirm the presence of undiscovered kimberlite pipes followed by ground geophysical survey and drilling if justified.
Alexandr Shaburkin, Rough&Polished, Moscow
