Botswana intends to intensify mining exploration, including for critical minerals, as part of a strategy to diversify the economy beyond diamonds, moving forward with the survey of about 70% of its territory that remains unexplored, Mines Minister Bogolo Joy Kenewendo said on Tuesday (10).
The southern African country, long considered a success story on the African continent, has been hit hard by a prolonged slowdown in the global diamond market, driven by economic uncertainty and the growing popularity of lab-grown stones. Gemstones typically account for about a third of national revenues.
The Debswana Diamond Company – a joint venture between Botswana and De Beers – which accounts for 90% of the country’s diamond sales, does not plan to increase production in a weak market.
“It makes no sense for us to burn money and accumulate (diamonds),” said Debswana CEO Andrew Motsomi.
According to data from the Ministry of Finance, at the end of December, Botswana had a stock of 12 million carats, almost double the maximum level allowed by the government, set at 6.5 million carats.
Although diamonds remain the backbone of the mining sector, Kenewendo said the government is moving forward with plans to broaden the mineral base, including critical minerals. The minister indicated that a newly launched state-owned exploration company will focus on increasing exploration levels.
“We were doing more prospecting for diamonds than for other high-value minerals. And now we are going to change that,” Kenewendo said on the sidelines of an African mining conference in Cape Town, adding: “If we have only explored 30% of our country, that shows our strong focus on diamonds.”
“There is some hesitation on the part of investors to move forward with exploration. A lot of money can be lost by exploring and finding nothing. We want to make sure we have the right data, that we know what is there and where, so we can decide if we also want to be investors in that space,” he said.
Interest from the United States of America (USA)
Interest in critical minerals, particularly those used in advanced manufacturing, has increased as the world’s two largest economies, the United States and China, compete for resources such as copper and cobalt.
The executive revealed that the US has expressed interest in establishing partnerships with Botswana in the area of exploration and mining, although talks are still at an early stage.
Source: Reuters
