Debswana, the 50-50 joint venture between De Beers and the Botswana government, will temporarily halt output at some sites and has reduced its rough guidance for the full year.
The move, which is due to persistent weak demand for rough diamonds, will see production at the Jwaneng Cut 9 and Orapa mines put on hold for three months, according to a report from Reuters Friday. Debswana accounts for approximately 90% of Botswana’s diamond sales.
The unit will also lower its guidance by 16%, with the intention of producing 15 million carats in 2025, it noted. Debswana already suspended operations at its Letlhakane tailing plant and Jwaneng Modular plant in April.
“Debswana Diamond Company continues to prudently navigate the challenging market conditions, including sustained low demand across the diamond pipeline and emerging pressures such as US-imposed tariffs,” Reuters quoted Debswana as saying.
The pauses are expected to save “significant” costs across fuel, electricity and other production consumables, Debswana said. Meanwhile, work on the Jwaneng underground project will proceed.
There have been no involuntary job losses arising from the plan, although Debswana continues to offer voluntary separation, according to the company. However, last month, Botswana President Duma Boko announced plans to terminate over 1,000 workers at Debswana as a way to offset the ongoing market downturn.
Image: A rough diamond on a sorting table. (Ben Perry/Armoury Films/De Beers)
