Debswana might boost diamond output if current recovery continues

Debswana will likely increase output from the 22.9 million carats produced in 2011 to 24 million carats or more if the recovery in the international diamond market experienced in the first quarter of the year continue throughout the year, an analyst say.  
Economist Dr Keith Jefferis was quoted by Mmegi as saying that the opening of Lucara’s Karowe diamond mine should also boost output this year while another improvement was expected early next year as Gem Diamond had completed the construction of its Ghagoo mine.
The mining slowdown in the fourth quarter was largely attributed to, among other factors, the curtail in diamond production by Debswana in the second half of the year as sales slumped by over 60 percent in the last six months of the year.
Meanwhile, Jefferis said that Botswana's economic growth will this year be healthy but not “spectacular” as non-mining contribution was likely to slow down after a robust growth in the past two years.
"This growth rate will be driven by an improved growth rate in mining, while growth in the non-mining private sector is likely to slow down,” he was quoted as saying.
“In particular, the large growth impetus that has come from the construction sector will fall away as large construction projects such as the Morupule B power station and Jwaneng Cut 8 wind down.”
He said there was likely to be little or no growth in the output of the government sector, given spending restraint.

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