The Debswana Diamond Company, a 50/50 joint venture between the Botswana government and De Beers, announced the commencement of the Cut-9 project to extend the life of Jwaneng mine to 2035. The project is expected to yield an estimated 53 million carats of rough diamonds from 44 million tonnes of treated material at Jwaneng, one of the world’s most valuable diamond mines.
Debswana will invest approximately $2 billion over the life of the project, underpinning the partnership’s commitment to the future of Botswana’s diamond industry. The Debswana shareholders have approved the budget for 2019 so that the
next phase of work can commence.
At its peak, Cut-9 is expected to create more than 1,000 jobs, the majority of which will be held by Batswana citizens. A local contract has also been awarded by Debswana to Majwe Mining, a joint venture between Bothakga Burrow Botswana and Thiess Botswana, to provide diamond mining services. The value of the contract is $1.2 billion.
Bruce Cleaver, chairman of Debswana, said: “The extension of Jwaneng mine secures Botswana’s rightful place as a leading diamond producing nation for years to come. With global consumer demand for diamonds reaching record levels in 2018, the extension will enable us to continue to meet the needs of our consumers all over the world. We are deeply proud of the central role Jwaneng mine has played in Botswana’s remarkable development story and of the role this investment will play in its future.”
Debswana managing director Albert Milton said: “As we have throughout the history of
Jwaneng mine, we remain steadfast in ensuring that all projects are delivered safely and to the benefit of the people of Botswana. We are also committed to delivering on the citizen economic empowerment (CEEP) goals and will focus on training our people, developing their skills and harnessing technology to create further safety and efficiency improvements.”
The high level CEEP key performance indicators for the Cut-9 project include, but are
not limited to:
• The establishment of an Apprentice and Artisan Training Centre.
• A Component Rebuild Centre, which is expected to mature into a self-sustaining business within three years from the launch of the project.
• Additional local business development initiatives.
Debswana is a significant contributor to Botswana’s economy with more than 80% of its profits being returned to the people of Botswana. The Jwaneng mine contributes approximately 70% of Debswana’s total revenue. Diamonds from Debswana, in turn contribute approximately 50% of public revenue, 33% of GDP, and over 80% of foreign earnings to Botswana.