Botswana’s Debswana Diamond Company is seeking funding from international capital markets to finance its ambitious $6 billion Jwaneng underground expansion, as falling revenues challenge its ability to support large-scale capital projects.
Speaking at a mining conference in Gaborone on Monday, Managing Director Andrew Motsomi said the company is pushing forward with plans to extend the life of its flagship Jwaneng Mine to 2054 by transitioning from open-pit to underground operations—despite a global slump in diamond demand since mid-2023.
Production cuts reflect the strain. In 2024, Debswana slashed output by 27%, and the company recently announced plans to further reduce production by 16%, targeting 15 million carats in 2025.
A 50-50 joint venture between Botswana’s government and global diamond giant De Beers, Debswana has historically financed projects through internal revenues or shareholder contributions. However, with capital requirements rising sharply, the company is shifting strategy.
“Revenues are declining while capital demands are rising,” Motsomi said. “We’re now targeting international capital markets and working to obtain a global credit rating to facilitate access.”
Over the past five years, Debswana’s average capital expenditure has been about 5 billion pula (roughly $373 million) annually. That figure is projected to increase to 8 billion pula per year over the next five years.
With open-pit operations expected to reach their economic limit by 2034, Debswana launched the underground expansion of Jwaneng in May 2024—marking a critical move to sustain production long-term.
Botswana’s Minister of Minerals and Energy, Bogolo Joy Kenewendo, also spoke at the conference and expressed cautious optimism about the future of the diamond industry.
“We’ve begun to see encouraging signs in the market since January,” she said. “While the recovery is still in its early stages, we anticipate a stronger rebound by 2026, driven by structural market changes and long-term strategic investments.”
The Jwaneng underground project is one of the largest capital investments in Botswana’s mining history and is expected to play a central role in preserving the country’s economic reliance on diamonds.
