Botswana’s Debswana Diamond Company is looking to international capital markets to help fund its $6 billion Jwaneng underground project, a director said on Monday, as dwindling revenues have limited its ability to finance capital projects.
Despite the downturn in the global diamond market since the second half of 2023, the company is pressing ahead with its plan to prolong the lifespan of its flagship Jwaneng mine to 2054 by converting it into an underground operation, managing director Andrew Motsomi said at a mining conference in the capital Gaborone.
Debswana cut production by 27% in 2024. The company announced plans last week to further reduce output by 16% to 15 million carats in 2025.
Debswana, a 50-50 joint venture between Botswana’s government and global giant De Beers, has previously financed its capital projects mostly from internally generated funds or injection from shareholders.
The company is now working on acquiring an international credit rating to enable it to access capital markets, Motsomi said. He did not say how much funding it was seeking.
“With revenues declining, the company is facing escalating capital requirements. Debswana expects an increase in capital expenditure from an average of 5 billion pula ($373 million) per annum for the past five years to 8 billion pula per annum over the next five-year period,” he said.
With open pit operations expected to reach their economic limit around 2034, Debswana started the Jwaneng mine underground project in May last year.
Also speaking at the conference, Botswana’s Minister of Minerals and Energy Bogolo Joy Kenewendo said she was hopeful for a recovery in diamond sales starting in 2026, supported by key structural shifts and long-term strategic investments.
“Since January, we have begun to see positive signs in the market. While we are not yet where we want to be, the upward trend is encouraging and gives us hope for a more robust recovery in the latter half of the year,” she said.
($1 = 13.4048 pulas)
(By Brian Benza; Editing by Nellie Peyton and Alison Williams)
