Debswana, the 50:50 diamond mining joint venture between De Beers and the government of Botswana, has approved a $1 billion investment for a crucial development phase of the Jwaneng underground project.
The move paves the way for the world’s most valuable diamond mine to transition from open-pit to underground operations.
De Beers said initial work will commence in May 2024 following the successful completion of feasibility studies.
The investment in this phase of work, known as the exploration access development phase, is for establishing a drilling platform to facilitate comprehensive sampling of the kimberlite pipes, delivering the early access decline for the underground mine, and developing essential infrastructure to support the forthcoming stages of the project, it said.
Once the exploration access development stage is complete, the project will be developed in two further mining phases to support long-term future production at the mine in an environment of tightening long-term diamond supply.
“Jwaneng stands proudly as the world’s greatest diamond mine. It is a central pillar of both the Botswana economy and the De Beers Group business,” said De Beers Group chief executive and Debswana deputy board chairperson Al Cook.
“The global supply of natural diamonds is falling, so moving forward with the Jwaneng Underground Project creates new value for investors, brings new technology to the country, creates new skills for our workforce, and provides new gems for customers around the world.”
Jwaneng has produced an annual average of almost 11 million carats per year since 1982 when it commenced production.
Pending relevant future Debswana board approvals, the Jwaneng underground project will ensure a long-term future for the mine while creating new jobs in Botswana and ensuring Debswana continues to make a significant contribution to the country's economy.
Botswana gets about 30% of its revenues and 70% of its foreign exchange earnings from Debswana’s diamonds.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
