Botswana President Mokgweetsi Masisi says lab-grown diamonds are a threat to the country's economic lifeblood as his government is preparing to initiate a $6-billion project to extend the lifespan of its flagship Jwaneng diamond mine.
The natural diamond market has seen significant challenges in the past two years as a result of the increasing demand for lab-grown diamonds that are more affordable, as well as global financial turbulence.
“If lab-grown diamonds take our space, then you and I are finished," Masisi was quoted by Reuters as saying to reporters as he departed for the United States to attend the JCK Show in Las Vegas.
He is expected to promote Botswana as a premier producer of ethically and responsibly sourced diamonds to protect its market share of natural diamonds.
Masisi said he would wage "a peaceful assault against lab-grown diamonds, to give confidence to our partners and dampen any attraction to lab grown.”
Botswana produced 20% of the world's total rough diamonds in 2022, falling behind Russia, according to figures from the Kimberley Process Certification Scheme, an industry watchdog.
The country is, nonetheless, the world's largest producer of diamonds in terms of value.
Diamonds account for up to 40% of the government's revenue, 75% of its foreign exchange gains, and one-third of the nation's output.
Meanwhile, Botswana and its partner De Beers, which is about to be spun off by parent firm Anglo American will launch the first phase of a $6-billion project on June 28 to prolong the lifespan of the Jwaneng mine from the current 2032 to 2054.
Jwaneng produces an average of 11 million carats annually.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
