Botswana takes steps to diversify from diamond mining

Botswana is taking steps to diversify from diamond mining as it commenced work on its first iron-ore mine, according to media reports citing a senior government official.
The Ikongwe iron-ore mine was recently granted a licence to develop the project.
Reuters quoted Chetan Patil, director of Vision Ridge, the business developing the mine, as saying that the deposit would produce a million tonnes of iron ore per year for 10 years, with iron-ore content of up to 65%, commonly referred to as 65% iron.
"Because of the prevailing high international market, we will target the export market but we also have plans to set up a pig-iron plant in Botswana," said Patil.
Botswana had been granting licences to mine commodities such as coal, copper and iron ore.
Mineral resources minister Lefoko Moagi said the iron-ore mine is looking at processing some of the run-on-mine material for local steel production.
“This will revive the local steel industry," he said.  
Botswana’s dependence on diamonds, which account for a fifth of the country's GDP and more than two-thirds of its foreign currency earnings, was exposed in 2020 when the COVID-19 pandemic paralysed the industry.
The pandemic drove diamond prices downwards, which saw the country's economy shrinking by about 8% last year compared to a growth of 4% before the pandemic.

Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished