Debswana Diamond Company is looking to global capital markets to finance the $6 billion underground expansion of its flagship Jwaneng mine.
Speaking at The Future of Mining Summit on Monday, managing director Andrew Motsomi said the 50-50 joint venture between De Beers and the Botswana government was seeking an international credit rating raise aimed at keeping Jwaneng in production until 2054, according to Reuters. The open-pit portion of the mine is expected to reach its limit by 2034, he said at the Gaborone conference.
Debswana estimates that annual capital expenditure will climb from about BWP 5 billion ($371.1 million) to BWP 8 billion ($593.8 million) during the next five years as underground work accelerates, bringing total project spending to roughly $6 billion. The company has traditionally funded mine expansions through retained earnings or shareholder loans but now plans to diversify its financing sources.
The miner cut rough-diamond output by 27% in 2024 and intends to trim it a further 16% this year to 15 million carats while market conditions remain subdued. Botswana Minerals and Energy Minister Bogolo Joy Kenewendo said she expected demand to rally by 2026, pointing to “recovery in the latter half of the year.”
Earlier this month, Debswana paused production for three months at Jwaneng’s Cut 9 and Orapa mines, citing weak demand and the impact of US tariffs, but confirmed that underground development at Jwaneng would proceed as scheduled.
The underground project received an initial $1 billion board approval in January 2024 to begin sampling kimberlite pipes and install key infrastructure. Two further phases will follow to secure long-term supply from what De Beers calls “the world’s richest diamond mine.”
Jwaneng has averaged about 11 million carats a year since opening in 1982 and accounts for the bulk of Botswana’s diamond revenue, which contributes nearly a fifth of the nation’s gross domestic product (GDP). Completion of the underground transition is expected to extend the mine’s lifespan by at least two decades.
Image: The Jwaneng mine. (De Beers)
