Latest news with #Jwaneng
Reuters
5 days ago
- Business
- Reuters
Botswana's Debswana to approach capital markets to fund Jwaneng underground project
GABORONE, June 16 (Reuters) - 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)
See - Sada Elbalad
10-06-2025
- Business
- See - Sada Elbalad
Africa's Diamond Giant Slashes Output Amid Global Market Weakness
Waleed Farouk In the heart of Africa, the global diamond industry was rattled by a major announcement from Debswana, one of the world's largest diamond producers, revealing a significant cut in its output amid a prolonged slump in the global market. The story began when the company — a joint venture between the Government of Botswana and mining giant De Beers — disclosed that its annual diamond production fell by 27% in 2024, dropping to just 17.93 million carats. This downturn is not temporary. The company anticipates further cuts in 2025, aiming for only 15 million carats — its lowest output in years. Behind the decision lies a chain of challenges impacting the luxury industry, especially a noticeable drop in global demand for rough diamonds, stockpiling issues, and new U.S. tariffs that disrupted exports — particularly from India, a key hub for diamond cutting and trading. Faced with mounting pressures, Debswana moved to suspend several of its mining operations, including units at Jwaneng and Orapa, and to delay capital projects. However, it confirmed that it would continue developing its ambitious underground Jwaneng project — a strategic investment in the future of Botswana's mining. The implications go far beyond company boundaries. Botswana's economy, heavily reliant on diamond exports, has been directly impacted. According to government data, diamonds accounted for 30% of the state's revenue and 75% of its foreign currency reserves in 2024. Still, that year saw the national GDP contract by 3%, with the IMF forecasting a further 0.4% decline in 2025. Amid these setbacks, Debswana emphasized that it would prioritize voluntary separation packages to avoid forced layoffs, as the company braces for a prolonged market downturn while hoping for a future rebound. read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News China Launches Largest Ever Aircraft Carrier Sports Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt News Prime Minister Moustafa Madbouly Inaugurates Two Indian Companies Business Fear & Greed Index Plummets to Lowest Level Ever Recorded amid Global Trade War Arts & Culture Zahi Hawass: Claims of Columns Beneath the Pyramid of Khafre Are Lies News Flights suspended at Port Sudan Airport after Drone Attacks News Shell Unveils Cost-Cutting, LNG Growth Plan Videos & Features Video: Trending Lifestyle TikToker Valeria Márquez Shot Dead during Live Stream Technology 50-Year Soviet Spacecraft 'Kosmos 482' Crashes into Indian Ocean
BBC News
06-06-2025
- Business
- BBC News
Botswana diamond giant Debswana slashes output as demand falls
Botswana's main diamond company has paused production at some of its mines, citing a prolonged downturn in global a joint venture between the government and global mining giant De Beers, saw its sales revenue drop by almost 50% last is the world's largest producer of diamonds by value. The industry accounts for a quarter of the country's total annual income (GDP), according to the International Monetary Friday, Debswana said production this year is being scaled back to 15 million carats - approximately a 40% decrease from its output in 2023. The company, which accounts for around 90% of Botswana's diamond sales expects this reduced output will lead to "significant cost savings" across areas like fuel and a statement, Debswana said it continued to "prudently navigate the challenging market conditions" citing low demand and "emerging pressures such as US-imposed tariffs".The global market for mined diamonds has been experiencing a decline since 2023, partly due to the availability of lab-grown response to this downturn, Debswana paused production at its flagship Jwaneng mine, as well as its Orapa mines, last month. Each mine will be closed for three months in southern African country has for decades been trying to shift its economy away from being dependent on diamond sales, to varying degrees of successive governments have boosted sectors such as tourism, finance and the mining of minerals such as copper, diamond sales still make up three-quarters of Botswana's foreign exchange income is likely to be hit by Debswana's decision to temporarily close its company has stressed that no involuntary job cuts are planned, although it continues to offer voluntary a result of the sustained downturn in the global diamond industry, Botswana will cut its 2025 economic growth forecast to almost zero, a senior finance official was quoted as saying by the Reuters news agency. You may also be interested in: World's second-largest diamond found in BotswanaHow friends became foes in Africa's diamond state'Proud to be young' - Beauty queen, lawyer and Botswana's youngest cabinet minister Go to for more news from the African us on Twitter @BBCAfrica, on Facebook at BBC Africa or on Instagram at bbcafrica
