De Beers Gets Approval for $1B Jwaneng Expansion Phase

Debswana, the joint venture between De Beers and the government of Botswana, has received a green light from its board to spend $1 billion on the next phase of its underground project at the Jwaneng mine.

The current stage of the development will be used to begin sampling of the kimberlite pipes and to develop the infrastructure for the move to underground mining, De Beers said Wednesday. The company will start the work in May, it noted.

Following completion of this phase of the project, the expansion of Jwaneng will require two additional stages of development to “support long-term future production at the mine in an environment of tightening long-term diamond supply,” it explained.

“[Jwaneng] is a central pillar of both the Botswana economy and the De Beers business,” said De Beers CEO Al Cook. “The global supply of natural diamonds is falling, so moving forward with the Jwaneng underground project creates new value for investors, brings new technology to the country, creates new skills for our workforce and provides new gems for customers around the world. This investment is aligned with our strategy to prioritize investments in the highest-quality projects.”

Jwaneng has produced an annual average of about 11 million carats per year since the start of operations in 1982, De Beers added.