Diamond mining in Botswana
Diamond mining in Botswana started in 1971. The country is currently setting the pace in the world’s diamond output by value and volume. It is one of the global largest exporters of diamonds. Table 1 (below) shows Botswana’s production and export metrics in 2006-2012.
Table 1
Production and export of diamonds in Botswana in 2006-2012
The table is based on the data provided by the Kimberley Process
In 2012, Botswana's diamond production fell by 10.3% in volume and by 23.6 % in value terms due to lower prices for rough after the record level achieved in 2011 in the entire history of diamond mining in the country. Diamond exports also declined by 27.1 % to $3,992.6 million.
Beneficiation program in Botswana
The large-scale program of diamond beneficiation in Botswana, the implementation of which was complicated by the end of 2008 due to the global economic crisis, is gaining momentum as this southern African country enjoys sustainable growth in diamond production.
According to the Ministry of Minerals, Energy and Water Resources of Botswana, diamond cutting operations in the country employed 2,489 people in late 2009 versus 3,178 people employed in 2008. The decreased number of workers was due to a drop in polished production caused by weak market conditions during the global economic crisis.
In 2010-12012, when the market bounced to growth, manufacturing operations in Botswana resumed to recruit workers again. As of April 2010, the manufacturing industry in Botswana employed 2,721 people. Apparently, a significant part of diamond manufacturing instructors come from Israeli and Indian companies, which transfer their production closer to the source of raw materials.
Development prospects for the diamond business in Botswana
The current stage of the diamond business in Botswana is characterized by the following factors:
1. The beneficiation process in the country ran into serious difficulties during the global economic crisis, but now it is on the rise. At the same time, the scale and volume planned for the diamond manufacturing industry in Botswana raise some doubts as far as their implementation is concerned, given the existing competition in this market segment.
2. De Beers moved its diamond trading arm to the capital of Botswana, Gaborone in November 2013. To create appropriate infrastructure, the country will need major investments, which can be provided by China, the UAE and other Middle East countries.
Yuri Danilov, Director of the Department of Subsoil Management Economics, Institute for Regional Economics of the North at Ammosov North-Eastern Federal University
