BOTSWANA’S diamond giant Debswana is exploring international financing options for a $6bn underground mining project at Jwaneng, according to a report by Reuters. The move marked a shift in the diamond firm’s traditional self-funding approach, the newswire added.
This comes as falling diamond revenues squeeze on Debswana’s ability to bankroll major capital investments. Debswana MD Andrew Motsomi unveiled the funding strategy at a mining conference in Gaborone on Monday.
Debswana plans to extend operations at its premier Jwaneng facility until 2054 by transitioning from open-pit to underground extraction. The ambitious project aims to maximise resource recovery before surface mining becomes uneconomical around 2034.
The company, jointly owned by Botswana’s government and De Beers, has historically relied on internal cash flow and shareholder contributions for major expenditures. Now it’s pursuing an international credit rating to tap global capital markets, though Motsomi declined to specify funding targets.
Production cuts reflect broader market pressures, with output slashed 27% last year and another 16% reduction planned for 2025, bringing total extraction to 15 million carats.
Capital spending is set to surge from an annual average of 5bn pula ($373m) over recent years to 8bn pula yearly through the next five-year cycle, Motsomi said.
Meanwhile, Minerals and Energy Minister Bogolo Joy Kenewendo expressed optimism about market conditions, pointing to early signs of recovery since January and predicting stronger diamond demand from 2026 onwards.
“The upward trend gives us confidence in a more substantial recovery during the year’s second half,” Kenewendo said.
