De Beers, the global diamond powerhouse, reaffirmed its commitment to a substantial $1 billion investment in expanding the lifespan of its primary Jwaneng mine in Botswana, despite the persisting downturn in gem demand from the previous year.
In collaboration with the Botswana government, De Beers, a division of Anglo-American, has greenlit this investment to transform the Jwaneng open pit into an underground mining operation. Originally announced in 2018, this investment aims to prolong the mine’s life by an additional 11 years starting in 2024. De Beers emphasized the necessity of this spending, foreseeing a tightening supply of rough gems in the long term.
Despite the ongoing subdued demand for diamonds, Angola initiated operations at its expansive Luele project last year, marking it as one of the largest diamond ventures globally in terms of estimated resources.
De Beers CEO Al Cook highlighted the declining global supply of natural diamonds, underscoring the significance of advancing the Jwaneng underground project to create added value for investors. The recent months have seen weak demand for rough diamonds, notably from India, which processes about 90% of the world’s rough diamonds. India urged global miners to hold off on selling gemstones to manage their accumulated stocks.
Cook reiterated that this investment aligns with De Beers’ strategy, prioritizing high-quality projects that promise significant returns. Moreover, De Beers sealed a new diamond sales agreement last year, a move that will progressively elevate the government’s share of diamonds from the Debswana joint venture to 50% over the coming decade.
