At a Glance
- Debswana plans a $6 billion underground shift to extend Jwaneng mine life beyond 2054.
- Botswana’s diamond revenue faces pressure as Debswana cuts 2024–2025 output projections.
- Underground mining secures Botswana’s role in global diamond supply and long-term GDP.
Debswana Diamond Company, co-owned by the Government of Botswana and global giant De Beers, is pushing forward with a $6 billion underground expansion of its flagship Jwaneng mine in a bid to extend the asset’s life through 2054.
The move marks a decisive shift from open-pit to underground mining at what is widely recognized as the world’s richest diamond mine by value.
Jwaneng, located in southern Botswana, has been the cornerstone of the country’s diamond economy for decades, leading as the largest private sector employer in Botswana, with more than 4 000 staff members.
With its open-pit operations approaching economic limits by 2034, Debswana initiated the underground transition in May 2023 as part of a long-term vision to sustain national revenue and maintain global competitiveness in diamond production.
Underground pivot amid market headwinds
The decision comes as the global diamond industry grapples with weakening demand, softening prices, and inflationary pressures. Debswana, the largest private sector employer in Botswana, reduced its production by 27 percent in 2024 and is set to cut another 16 percent in 2025, targeting an output of 15 million carats.
Despite these headwinds, the company is investing in the future. Managing Director Andrew Motsomi confirmed at a mining conference in Gaborone that Debswana is seeking to raise capital on international markets and is currently pursuing a global credit rating to unlock access to funding.
“With declining revenues, the company is facing escalating capital requirements,” said Motsomi. “Capital expenditure is expected to rise from an average of 5 billion pula per year over the past five years to 8 billion pula annually in the next five.”
Strategic national asset under transformation
The Jwaneng underground project is not just a technical upgrade—it is a strategic move to preserve Botswana’s leading role in the global diamond value chain.
The project is central to sustaining government revenues, foreign exchange earnings, and employment in a country where diamonds contribute over 30 percent to the GDP of nearly $20 billion.
Botswana’s Minister of Minerals and Energy, Bogolo Joy Kenewendo, expressed optimism about a potential market rebound by 2026, citing structural shifts and long-term investment. “We are already seeing positive signs since January,” she noted. “There’s renewed confidence that a robust recovery is underway.”
Debswana’s underground expansion of Jwaneng marks one of Africa’s most ambitious resource investment undertakings.
Once complete, the mine will continue to serve as a pillar of Botswana’s economy, enabling a new era of underground diamond extraction powered by modern technology and long-term strategic planning.
